The relationship between energy consumption, CO2 emission, population growth and economic growth: An empirical multivariate causal linkage from Ethiopia

Titolo Rivista ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT
Autori/Curatori Erasmus L. Owusu
Anno di pubblicazione 2019 Fascicolo 2018/1
Lingua Italiano Numero pagine 15 P. 225-239 Dimensione file 221 KB
DOI 10.3280/EFE2018-001010
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

Qui sotto puoi vedere in anteprima la prima pagina di questo articolo.

Se questo articolo ti interessa, lo puoi acquistare (e scaricare in formato pdf) seguendo le facili indicazioni per acquistare il download credit. Acquista Download Credits per scaricare questo Articolo in formato PDF

Anteprima articolo

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA)associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche

This paper empirically researches the short and long-run causal relationship be-tween energy consumption, CO2 emission, population growth and economic growth in Ethiopia. In doing this, the paper employs multivariate Granger-Causality within an ARDL-bounds testing approach to co-integration and unre-stricted error correction model (UECM). The paper finds that there is a short-run impact on population growth and electricity consumption on economic growth whilst in the long run; economic growth promotes CO2 emissions in Ethiopia. And also, the results indicate that population growth and energy usage cause CO2 emis-sion in both the long and the short runs. Thus, policies should be targeted at the expansion of renewable and efficient electricity production in order to cope with the expected demand from expected population growth and from increasing de-mand from industries whilst maintaining sustainable economic growth.;

Keywords:Economic growth, ARDL-bounds testing approach, energy consump-tion; electricity consumption, CO2 emission, population growth, Ethiopia. CO2

Jel codes:O1, Q4, Q5.

  1. Adjei S.K. (2016). A Dynamic estimation of electricity production and economic growth in Ghana: An econometric analysis. International Journal of Economics, Commerce and Management, 4(2), February.
  2. Alkhathlan K., Javid M. (2013). Energy consumption, carbon emissions and economic growth in Saudi Arabia: An aggregate and disaggregate analysis. Energy Policy, 62: 1525-1532.
  3. Banerjee A. et al. (1993). Co-integration, Error Correction, and the Econometric Analysis of Non-stationary Data. Oxford: Oxford University Press.
  4. Charemza W., Deadman D. (1992). New Directions in Econometric Practice: General to Specific Modelling, Co-integration and Vector Auto-regression. Aldershot: Edward Elgar.
  5. Dickey D., Fuller W. (1979). Distribution of the Estimators for Autoregressive Time Series with a Unit Root. Journal of the American Statistical Association, 74(1). DOI: 10.2307/2286348.
  6. Duasa J. (2007). Determinants of Malaysian trade balance: An ARDL bounds testing approach. Journal of Economic Cooperation, 28(3): 21-40.
  7. Gebreegziabher Z., Hailu Y., Gebrekirstos K. (2010). Energy, growth and environmental interaction in the Ethiopian Economy. Mekelle University, Ethiopia.
  8. Green Energy Act (2009). Energy Consumption and Greenhouse Gas Emissions. The Template City of Thunder Bay. June 27, 2013.
  9. Hundie S.K. (2018). Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality Analysis. Turkish Journal of Agriculture – Food Science and Technology, 6(6): 699-709.
  10. IEA (2012). World Energy Outlook. International Energy Agency. Paris, France.
  11. International Energy Statistics (IES) (2015). Key World Energy Statistics. International Energy Statistics.
  12. Japan International Cooperation Agency (JICA) (2010). Energy policy of Ethiopia. Ministry of Mines & Energy. [Online] Available from -- http://eneken.ieej.or.jp/data/3195.pdf [Accessed 07 April 2016].
  13. Jos G.J (2012). Trends in global CO2 emissions Report. The Netherlands Environmental Assessment Agency, 2012.
  14. Khoba H., Le Roux P. (2017). The Relationship between Energy Consumption, Economic Growth and Carbon Dioxide Emission: The Case of South Africa. International Journal of Energy Economics and Policy, 7(3): 102-109.
  15. Kraft J., Kraft A. (1978). On the relationship between energy and GNP. Journal of Energy Development, 3: 401-403.
  16. Laurenceson J., Chai J. (2003). Financial Reform and Economic Development in China. Cheltenham, UK: Edward Elgar.
  17. Majid M.S.A. (2008). Does financial development matter for economic growth in Malaysia? An ARDL bounds testing approach. Journal of Economic Cooperation, 29(1): 61-82.
  18. Ministry of Water and Energy (MoWE), Ethiopia. (2011). Energy Balance and Statistics for the Years 2005/06 to 2009/10. MoWE, Addis Ababa.
  19. Ministry of Water and Energy (MoWE), Ethiopia. (2013). Energy Balance and Statistics for the Years 2005/06 to 2012/13. MoWE, Addis Ababa.
  20. Narayan P.K. (2004). Reformulating Critical Values for the Bounds F-Statistics Approach to Co-integration: An Application to the Tourism Demand Model for Fiji. Department of Economics Discussion Papers No.02/04. Monash University: Melbourne, Australia.
  21. Narayan P.K., Smyth R. (2008). Energy Consumption and Real GDP in G7 Countries: New Evidence from Panel Cointegration with Structural Breaks. Energy Economics, 30: 2331-2341.
  22. Nyasha S., Gwenhure Y., Odhiambo N.M. (2018). Energy consumption and economic growth in Ethiopia: A dynamic causal linkage. Energy and Environment. Online: June 11.
  23. National Bank of Ethiopia (NBE). 2016/2017. Annual Report.
  24. Odhiambo N.M. (2009). Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach. Energy Policy, 37: 617-622.
  25. Odhiambo N.M. (2010). Energy consumption, prices and economic growth in three SSA countries: A comparative study. Energy Policy, 38: 2463-2469.
  26. Pesaran M.H, Shin Y., Smith R.J. (2001). Bounds Testing Approaches to the analysis of level relationships. Journal of Applied Econometrics, 16: 289-326.
  27. Pesaran M.H., Shin Y. (1999). An Autoregressive Distributed Lag Modelling Approach to Cointegration Analysis. In: S. Strom, A. Holly and P. Diamond (Eds.). Econometrics and Economic Theory in the 20th Century: The Ragnar Frisch Centennial Symposium. Cambridge: Cambridge University Press. -- www.econ.cam.ac.uk/faculty/pesaran/ADL.pdf.
  28. Phillips P.C.B., Perron P. (1988). Testing for a Unit Root in Time Series Regression. Biometrica, 75: 335-346.
  29. Ramakrishna G. (2015). Energy Consumption and Economic Growth: The Ethiopian Experience. Journal of Economic and Financial Modelling, 2(2): 35-47.
  30. Shui A., Lam P.L. (2004). Electricity Consumption and Economic Growth in China. Energy Policy, 32: 47-54.
  31. Tekalign E. (2014). Energy Consumption, Carbon Dioxide Emissions and Economic Growth in Ethiopia: a VAR Analysis Approach. Jimma University 51. Jimma: Jimma University. -- http://opendocs.ids.ac.uk/opendocs/handle/123456789/6911.
  32. Wesseh Jnr P.K., Lin B. (2018). Energy consumption, fuel substitution, technical change, and economic growth: Implications for CO2 mitigation in Egypt. Energy Policy, 117: 340-347.
  33. Wolde E.T., Mulugeta W., Hussen M.M. (2016). Energy Consumption, Carbon Dioxide Emissions and Economic Growth in Ethiopia. Global Journal of Management and Business Research, 16(I2): Version 1.
  34. Wolde-Rufael Y. (2004). Disaggregated industrial energy consumption and GDP: the case of Shanghai, 1952-1999. Energy Economics, 26(1): 69-75.
  35. World Bank (2018). World Development Indicators, various issues to 2018, Washington DC.

Erasmus L. Owusu, The relationship between energy consumption, CO2 emission, population growth and economic growth: An empirical multivariate causal linkage from Ethiopia in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 1/2018, pp 225-239, DOI: 10.3280/EFE2018-001010