Investigation of Causality Analysis Between Economic Growth and CO2 Emissions: The Case of Brics – T Countries (original) (raw)
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This article aims to verify the existence of a relationship of cointegration and causality between economic growth and CO2 emissions in 22 member countries of the OECD, in a time series from 1961 to 2011. The results indicate that economic growth and CO2 are in balance in the long run for ten countries. The causality test showed a bilateral relationship, suggesting that variations in economic growth cause CO2 emissions and CO2 emissions cause economic growth. Long and short-term alternative measure, such as reforestation, the fight against deforestation, the use of wind, nuclear, and solar power, electric vehicles, incentives for the use of public transport, capture and storage of CO2 are recommended for countries that CO2 caused economic growth. Thus, it is concluded that there is evidence of long-term and causal relationships between economic growth and CO2 emissions.
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The mad rush for rapid economic growth led by industrialization in emerging economies is having a negative impact on ecological management. Rapid economic growth and expansion of economic activities in most developed countries have resulted in acceleration of global warming and climate change. The direction of causality between carbon emission and economic growth varies from one country to the other depending on the data set and methodology employed by the researcher. In this paper, we examine the causal relationship between carbon emission and economic growth in five selected countries namely China, United States, Russia, India, and Japan. These countries are selected because they are the largest carbon emitters in the world. The study used two types of unit root test technique Levin-Lin-Chu (LLC) and Im-Pesaran-Shin (IPS) unit-root tests to ascertain the order of integration. Johansen Fisher Panel cointegration techniques and Pairwise Dumitrescu Hurlin Panel Causality Tests were a...