Economic Growth, Energy Consumption and Carbon Emissions Relation: The Case of China

Year 2021, Volume: 23 Issue: 1, 172 - 186, 29.03.2021

Musa Atgür

https://doi.org/10.32709/akusosbil.696857

Cited By: 3

Abstract

It is discussed the effects on the environment of energy use at a high level depending on economic growth and development. It is the cause negative effects on air quality, and it brings with it important problems in terms of the environment we live in increasing of energy use in economic and social life. In this context, approaches are becoming more and more important based on the sustainability of economic development and growth. In this paper, the relationship between economic growth, energy consumption and carbon emissions in the context of sustainable growth in China during the period 1971-2014. The annual data were used in the paper, Johansen Cointegration, Ordinary Least Squares estimation, Error Correction Model Granger causality test methods have been performed. Obtained the findings show that the results of the Johansen Cointegration test and Ordinary Least Squares estimation are statistically significant. However, Error Correction Model Granger causality test results were not found to be significant. The findings show that economic growth and energy consumption has an impact on carbon emissions in China and reveals that the Sustainable Economic Growth approach is important for China.

Keywords

Economic growth, energy consumption, carbon emissions

Ekonomik Büyüme, Enerji Tüketimi ve Karbon Emisyonları İlişkisi: Çin Örneği

Abstract

Ekonomik büyüme ve gelişmeye bağlı olarak yüksek düzeyde enerji tüketiminin çevre üzerindeki etkileri tartışılmaktadır. Ekonomik ve sosyal yaşamda enerji kullanımının giderek artması çevre kalitesini olumsuz etkilemekte, yaşanılan çevre açısından önemli sorunları da beraberinde getirmektedir. Bu bağlamda, ekonomik gelişme ve büyümenin sürdürülebilirliğini esas alan yaklaşımlar gittikçe önem kazanmaktadır. Bu çalışma, Çin'de 1971-2014 döneminde sürdürülebilir büyüme bağlamında ekonomik büyüme ve enerji kullanımı ile karbon emisyonları arasındaki ilişkiyi incelemeyi amaçlamaktadır. Çalışmada, yıllık veriler kullanılmış olup Sıradan En Küçük Kareler tahmin yöntemi ile beraber Johansen Eşbütünleşme ve Hata Düzeltme Modeli Granger nedensellik test yöntemleri uygulanmıştır. Elde edilen bulgular, Johansen Eşbütünleşme test ve Sıradan En Küçük Kareler yöntemi tahmin sonuçlarının istatistiksel olarak anlamlı sonuçlandığını göstermektedir. Fakat, Hata Düzeltme Modeli Granger nedensellik test sonuçları anlamlı bulunmamıştır. Bulgular, Çin’de ekonomik büyümenin ve enerji tüketiminin karbon emisyonları üzerinde etkili olduğunu göstermekte ve Sürdürülebilir Ekonomik Büyüme yaklaşımının Çin için önemli olduğunu ortaya koymaktadır.

Keywords

Ekonomik büyüme, enerji tüketimi, karbon emisyonları

References

• Acaravcı, A. ve Ozturk, I. (2010). CO2 Emissions, energy consumption and economic growth in Turkey. Renewable and Sustainable Energy Reviews, 9(14), 3220-3225.
• Akpan, G. E. ve Akpan, U. F. (2012). Electricity consumption, carbon emissions and economic growth in Nigeria. International Journal of Energy Economics and Policy, 4(2), 292-306.
• Ang, J. (2007). CO2 Emissions, energy consumption, and output in France. Energy Policy, 10(35), 4772-4778.
• Apergis, N. ve Danuletiu, D. C. (2014). Renewable energy and economic growth: Evidence from the sign of panel long-Run causality. International Journal of Energy Economics and Policy, 4(4), 578-587.
• Apergis, N. ve Payne, J. E. (2010). The emissions, energy consumption, and growth nexus: Evidence from the common wealth of independent states. Energy Policy, 38(1), 650-655.
• Arouri, M., Youssef, A. B., M'Henni, H. ve Rault, C. (2012). Energy consumption, economic growth and CO2 emissions in Middle East and North African countries. IZA DP No. 6412.
• Arouri, M., Youssef, A. B., M'Henni, H. ve Rault, C. (2014). Energy use and economic growth in Africa: A panel Granger-causality investigation. CESifo Working Paper No. 4844.
• Aydın, F. F. (2013). CO2 Emissions, renewable energy consumption, population density and economic growth in G7 countries. The Journal of Knowledge Economy & Management, 2(8), 89-104.
• Aye, G. C. ve Edoja, P. E. (2017). Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model. Cogent Economics & Finance, 5(2017), 1-22.
• Chang, C. C. (2010). A multivariate causality test of carbon dioxide emissions, energy consumption and economic growth in China. Applied Energy, 87(11), 3533-3537. https://doi.org/10.1016/j.apenergy.2010.05.004
• Chibueze, E. N., Jude, O. C. ve Moses, N. (2013). Electricity supply, fossil fuel consumption, CO2 emissions and economic growth: implications and policy options for sustainable development in Nigeria. International Journal of Energy Economics and Policy, 3(3), 262-271.
• Dasgupta, P. ve Heal, G. (1974). The optimal depletion of exhaustible resources. Review of Economic Studies, 41, 3–28.
• Dees, P. ve Auktor, G. (2017). Renewable energy and economic growth in the MENA region: empirical evidence and policy implications. Proceedings of the 37th Annual Meetings of MEEA, Chicago.
• Dwyer, G. P. (2015). The johansen tests for cointegration. Journal Horizon, 12. http://www. Jerrydwyer.com/pdf/Clemson/Cointegration.pdf (Erişim tarihi: 18.12.2019).
• Ejuvbekpokpo, S. A. (2014). Impact of carbon emissions on economic growth in Nigeria. Asian Journal of Basic and Applied Sciences, 1(1), 15-25.
• Elliot, G., Rothenberg, T. J., ve Stock, J. H. (1996). Efficient tests for an autoregressive unit root. Econometrica, 64, 813–836.
• Eugenio, F. B. ve Roberto, P. C. (2009). Country-specific environmental kuznets curves: A random coefficient approach applied to high-income countries. Estudios de Economia, 1(36), 5-32.
• Farhani, S. ve Rejeb, B. J. (2012). Energy consumption, economic growth and CO2 emissions: evidence from panel data for MENA region. International Journal of Energy Economics and Policy, 2(2), 71-81.
• Granger, C. W. J. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica, 3(37), 424-438.
• Grossman, G. M. ve Krueger, A. (1995). Economic growth and the environment. The Quarterly Journal of Economics, 2(110), 353-377.
• Hjalmarsson, E. ve Österholm, P. (2007). Testing for Cointegration Using the Johansen Methodology when Variables are Near-Integrated, IMF Working Paper No. 07/141
• Holtz-Eakin, D. ve Selden, T. (1995). Stoking the fires? CO2 emissions and economic growth. Journal of Public Economics, 1995, 1(57), 85-101.
• Issaoui, F., Toumi, H. ve Touili, W. (2016). The effects of carbon dioxide emissions on economic growth, urbanization, And welfare: application to countries in the Middle East and North Africa. The Journal of Energy and Development,1/2(41), 223-252.
• Kaplan, M., Ozturk, I. ve Kalyoncu, H. (2011). Energy consumption and economic growth in Turkey: cointegration and causality analysis. Romanian Journal of Economic Forecasting – 2/2011: 31-41.
• Kasperowicz, R. (2015). Economic growth and CO2 emissions: The ECM analysis. Journal of International Studies, 3(8): 91-98.
• Markulev, A. ve Long, A. (2013). On sustainability: an economic appoach. Australian Government Productivity Commission Staf Research Note May 2013. http://www.uws.edu.au/__data/assets/pdf_file/0008/473327/Economic_sustainability_discussion_paper_May_2013.pdf (Erişim tarihi: 10.12.2019).
• Menyah, K. ve Wolde-Rufael, Y. (2010). Energy consumption, pollutant emissions and economic growth in South Africa. Energy Economics, 6(32), 1374-1382.
• Nandakumar, V. T., Devasia, M. D. ve Thomachan, K. T. (2017). Interaction between energy consumption and economic growth in India. International Journal of Research- Granthaalayah, 4(5), 62-71.
• Niu, S., Ding, Y., Niu, Y., Li, Y. ve Luo, G. (2011). Economic growth, energy conservation and emissions reduction: A comparative analysis based on panel data for 8 Asian- Pacific countries. Energy Policy, 39, 2121–2131.
• Obradović, S. ve Lojanica, N. (2017). Energy use, CO2 emissions and economic growth – causality on a sample of SEE countries. Economic Research-Ekonomska Istraživanja, 30(1), 511-526.
• Panayotou, T. (1993). Empirical tests and policy analysis of environmental degradation at different stages of economic development. Working Paper WP238, Technology and Employment Programme, International Labour Office, Geneva.
• Resnick, D. ve Thurlow, J. (2012). Green growth: A win-win approach to sustainable development?. United Nations Univesity. https://unu.edu/publications/articles/green- growth-a-win-win-approach.html (Erişim tarihi: 24.12.2019).
• Richmond, A. K. ve Kaufmann, R.K. (2006). Is there a turning point in the relationship between income and energy use and/or carbon emissions?. Ecological Economics, 56(2), 176-189.
• Ru, X., Chen, S. ve Dong, H. (2012). A study on relationship between CO2 emissions and economic development in China based on dematerialization theory. Energy and Environment Research, 2(2), 37-44.
• Selden, T. M. ve Song, D. (1994). Environmental quality and development: Is there a Kuznets curve for air pollution emissions?. Journal of Environmental Economics and Management, 27, 147-162.
• Shafik, N. (1994). Economic development and environmental quality: An econometric analysis. Oxford Economic Papers New Series, 46, Special Issue on Environmental Economics (Oct., 1994), 757-773.
• Shafik, N. ve Bandyopadhyay, S. (1992). Economic Growth and Environmental Quality: Time Series and Cross-Country Evidence. World Bank Working Paper WPS 904, Washington DC.
• Siddiqui, R. (2004). Energy and economic growth in Pakistan. The Pakistan development review. Pakistan Institute of Development Economics, 43(2), 175-200.
• Solow, R. (1974). Intergenerational equity and exhaustible resources. Review of Economic Studies, 41, 29–45.
• Soytas, U. ve Sarı, R. (2009). Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member, Ecological Economics, 6(68), 1667-1675.
• Stern, D. I. (2003). The environmental Kuznets curve. International Society for Ecological Economics Internet Encyclopaedia of Ecological Economics, 1-18.
• Stiglitz, J., (1974). Growth with exhaustible natural resources: efficient and optimal growth paths. Review of Economic Studies, 41, 123–137.
• Tiwari, A. K. (2011). Energy consumption, CO2 emissions and economic growth: A revisit of the evidence from India. Applied Econometrics and International Development, 11-2(2011), 165-189.
• To, H., Wijeweera, A. ve Charles, M. B. (2013). Energy consumption and economic growth – the case of Australia. in Australian Conference of Economists.
• Ucan, O., Arıcıoğlu, E. ve Yucel, F. (2014). Energy consumption and economic growth nexus: evidence from developed countries in Europe. International Journal of Energy Economics and Policy, 3(4), 411-419.
• Van De Geer, S. A. (2005). Least squares estimation. Chichester: John Wiley & Sons, Ltd.
• Vincent, J. (1996). Resource depletion and economic sustainability in Malaysia. Cambridge: Harvard Institute for International Development, Harvard University.
• Vlahinić-Dizdarević, N., ve Žiković, S. (2010). The role of energy in economic growth: The case of Croatia. Proceedings of Rijeka Faculty of Economics – Journal of Economics and Business, 28 (1), 35-60.
• Wolde, E. T., Mulugeta, W. ve Hussen, M. M. (2016). Energy consumption, carbon dioxide emissions and economic growth in Ethiopia. Global Journal of Management and Business Research (B), 2(16), 1-10.
• Xiongling, T. (2016). The relationship between carbon dioxide emission intensity and economic growth in China: cointegration, linear and nonlinear Granger causality. Journal of Resources and Ecology, 7(2), 122-129.