Co2 Emissions and Economic Growth in Vietnam: An ARDL Bound Testing Approach (original) (raw)
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Asia-Pacific Journal of Regional Science
Global climate change caused by Greenhouse Gases (GHGs), particularly carbon dioxide (CO 2) emissions, poses incomparable threats to the environment, development and sustainability. Vietnam is experiencing continuous economic growth and agricultural advancement, which causes higher energy consumption and CO 2 emissions. Understanding Vietnam's sensitivity to climate change is becoming more crucial for governments trying to reconcile climate change mitigation and sustainable development. Analyzing pollution-development trade-offs can help minimize environmental degradation in Vietnam. Therefore, the present study empirically investigated the nexus between economic growth, energy use, agricultural added value and CO 2 emissions in Vietnam. To investigate the short-run and long-run relationships between the variables, this study employed the autoregressive distributed lag (ARDL) technique and the Vector Error Correction Model (VECM) using the time series data from 1984 to 2020 for Vietnam. The empirical findings indicated that economic growth and energy use trigger environmental degradation by increasing CO 2 emissions, whereas enhancing agricultural added value improves Vietnam's environmental quality by reducing CO 2 emissions in both the long-run and shortrun. The estimated results are robust compared with alternative estimators such as dynamic ordinary least squares (DOLS), fully modified least squares (FMOLS), and canonical cointegrating regression (CCR). This research contributes to the existing literature by shedding light on the potential of agricultural added value to reduce emissions in Vietnam and provides policy recommendations in areas of low-carbon economy, promoting renewable energy, and sustainable agriculture that can reduce CO 2 emissions in Vietnam.
A Cointegration Analysis of Economic Growth and CO2 Emission: A Case Study of Malaysia.
Environmental Management and Sustainable Development, 2020
The paper aims to establish a long-run and the Granger causal relationship between economic growth, emissions, international trade, energy consumption, and population density in Malaysia. The study will use annual data from 1970 to 2014. A unique cointegrating relationship between our variables was identified. The study employed the Auto-Regressive Distributed Lag model to examine the Environmental Kuznets Curve. Our empirical results analysis showed a long-run relationship between per capita emissions and our explanatory variables. To investigate the Granger causal relationship between, the Vector Error Correction Model was employed and our results, associated the absence of Granger causality between emissions and economic growth in the short-run while revealing a unidirectional Granger causality movement from economic growth to emissions in the long-run. Hence, an increase in will lead to a rise in emissions in Malaysia.
Environmental Science and Pollution Research, 2017
The study aims to combine the autoregressive distributed lag (ARDL) cointegration framework with smooth transition autoregressive (STAR)-type nonlinear econometric models for causal inference. Further, the proposed STAR distributed lag (STARDL) models offer new insights in terms of modeling nonlinearity in the long-and short-run relations between analyzed variables. The STARDL method allows modeling and testing nonlinearity in the short-run and longrun parameters or both in the short-and long-run relations. To this aim, the relation between CO 2 emissions and economic growth rates in the USA is investigated for the 1800-2014 period, which is one of the largest data sets available. The proposed hybrid models are the logistic, exponential, and second-order logistic smooth transition autoregressive distributed lag (LSTARDL, ESTARDL, and LSTAR2DL) models combine the STAR framework with nonlinear ARDL-type cointegration to augment the linear ARDL approach with smooth transitional nonlinearity. The proposed models provide a new approach to the relevant econometrics and environmental economics literature. Our results indicated the presence of asymmetric long-run and short-run relations between the analyzed variables that are from the GDP towards CO 2 emissions. By the use of newly proposed STARDL models, the results are in favor of important differences in terms of the response of CO 2 emissions in regimes 1 and 2 for the estimated LSTAR2DL and LSTARDL models.
Economic Growth and CO2 Emission in Bangladesh
Social Science Journal , 2022
This paper investigates the relationship between economic growth and pollution emission for a small developing country, Bangladesh, during the period 1972-2014. Carbon dioxide (CO2) is used as the pollution indicator and GDP per capita as the economic indicator. Apart from that industrial value-addition and electricity production from non-renewable resources (i.e. oil, gas and coal) are also taken into consideration here. The long-run relationship is investigated using the auto-regressive distributed lag (ARDL) bounds testing approach as well as Johansen cointegration model and error correction method. The results of the analysis reveal a positive sign for coefficient of GDP, evidencing that the economic growth in Bangladesh is taking place at the expense of pollution emissions. Although evidence on contribution of industrial production on CO2 emission is not found but for electricity production the evidence is positive. Policy implication of these findings are Bangladesh need to emphasise environmental policies related to emission reduction and alternative sources like renewable energy production. These could be feasible policy tools for Bangladesh to achieve sustainable growth in the long run.
Energy, 2015
The purpose of this paper is to examined the empirical effects of stocks traded-total value, foreign direct investment, number of students, and fossil fuel energy consumption on nitrogen dioxide (NO2) emissions in Iran using time series data for the period 1978-2012. To achieve this goal, we applied the autoregressive distributed lag (ARDL) bounds testing approach. Findings indicate that foreign direct investment, fossil fuel energy consumption, and number of students stimulate NO2 emissions in the long run. Based on these findings, the study recommends that Iran reduce emissions by expanding its existing Carbon Capture, Utilization, and Storage plants; capitalizing on its vast solar and wind energy; reducing high subsidies of the residential electricity scheme; and aggressively investing in energy research to build expertise for achieving electricity generation efficiency. It must be noted that greenhouse gas reduction policies cannot produce immediate results in changing wind and precipitation patterns and thus mitigating climate change effects.
Carbon dioxide emissions and the prospects for Lao PDR’s economic self-development
Human Systems Management, 2019
This article explores carbon dioxide (CO 2) emissions and economic development in Lao PDR, in the context of the country's urgent need and prospects for economic self-development. By employing an auto-regressive distributed lag (ARDL) bounds model, the empirical results show that gross domestic product (GDP) has a statistically significant and positive effect on CO 2 emissions. The article also affirms the existence of co-integration among pertinent variables and substantiates the positive long-term shock between CO 2 and GDP. Within reality, these results confirm the presence of causality running from foreign direct investment (FDI) and GDP to CO 2. Despite its limitations, this study is a pioneering exploration of empirical evidence regarding Lao PDR's yearning and prospects for economic self-development, toward which gravitate the article's future research directions and policymaking recommendations.
The Impact of Co2 on Economic Growth in Asean 8
Procedia - Social and Behavioral Sciences, 2012
Environmental pollution may directly decrease output and decreasing productivity of man-made capital and labor. The distressfulness and the long term damaging effect of this environmental pollution can contribute to destructive consequences on human wellbeing and economy. The purpose of the study is to examine the relationship between CO 2 on economic growth in Asean 8. The income levels per capita gross domestic product per capita were measured from the year 1965 to 2010. This study formulates a three equation simultaneous model for empirical research. In the pollution indicator emissions, CO 2 in Asean 8, the Environmental Kuznets Curve relationship is found.
Economic Growth and Environmental Pollution in Brunei: ARDL Bounds Testing Approach to Cointegration
Asian Journal of Economics, Business and Accounting, 2019
Aims: This study examined the short run and long run dynamic relationship between economic growth and environmental pollution in Brunei. We adoptedAuto Regressive Distributed Lag (ARDL) model to scrutinize the existence of the Environmental Kuznets Curve (EKC) among the studying variables by using time series data cover the period of 1974 to 2014. Methodology: The ARDL bound test revealed the existence of long-run relationship among the integrated variables when CO 2 chosen as a dependent variable. Results: The results support the existences of EKC hypotheses in the long-run whereas in the short-run an inverted U-shaped curve was not confirmed between GDP and CO 2 in Brunei. The results of Granger causality based on VECM analysis have shown unidirectional causality runs from economic growth to CO 2 in the short run. Further analysis through stability test indicates the coefficients in the model are stable and do not suffers with structural break within the time taken in the study. Review Article Hemed et al.; AJEBA, 10(4): 1-11, 2019; Article no.AJEBA.47816 2 Conclusion: The government of Brunei should proceed to target the sustainable means of production, which has an environmental friendly and consumes less energy to enhance economic growth and maintain environmental quality in the long run.
PLOS ONE
Carbon dioxide (CO2) emissions have become a critical aspect of the economic and sustainable development indicators of every country. In Pakistan, where there is a substantial increase in the population, industrialization, and demand for electricity production from different resources, the fear of an increase in CO2 emissions cannot be ignored. This study explores the link that betwixt CO2 emissions with different significant economic indicators in Pakistan from 1960 to 2018 using the autoregressive distributed lag (ARDL) modelling technique. We implemented the covariance proportion, coefficient of determination, the Durbin Watson D statistics, analysis of variance (ANOVA), variance inflating factor (VIF), the Breusch-Pagan test, the Theil’s inequality, the root mean quare error (RMSE), the mean absolute percentage error (MAPE), and the mean absolute error (MAE) for the diagnostics, efficiency, and validity of our model. Our results showed a significant association between increased...
Factors influencing CO2 Emission in China: A Nonlinear Autoregressive Distributed Lags Investigation
2019
This paper investigates the environmental impact of economic growth, energy consumption, financial development and globalization in China over the period 1970Q1-2015Q4. In particular we consider four dimensions of globalization namely economic, social, political and overall globalization. The Nonlinear Autoregressive Distributed Lags (NARDL) model has been employed to capture the potential asymmetric impact of the determinants of dioxide carbon emissions in China. Interestingly, findings show that: (1) In the short-run: economic growth and financial development have a significant symmetric impact on CO2 emissions. Energy consumption has a nonlinear and asymmetric influence on CO2 emissions. However, economic globalization does not impact CO2 emissions. (2) In the long-run: economic growth, financial development and economic globalization exhibit an asymmetric influence on carbon emissions in model including the economic dimension of globalization. Economic growth has a positive symm...