Empirical link between economic growth, energy consumption and CO2 emission in Australia
Article
Article Title | Empirical link between economic growth, energy consumption and CO2 emission in Australia |
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ERA Journal ID | 18404 |
Article Category | Article |
Authors | Salahuddin, Mohammad (Author) and Khan, Shahjahan (Author) |
Journal Title | Journal of Developing Areas |
Journal Citation | 47 (2), pp. 81-92 |
Number of Pages | 12 |
Year | 2013 |
Publisher | Tennessee State University |
Place of Publication | Nashville, TN, USA |
ISSN | 0022-037X |
1548-2278 | |
Web Address (URL) | http://muse.jhu.edu/journals/journal_of_developing_areas/ |
Abstract | This study investigates the causal relationship between economic growth, energy consumption and CO2 emission in Australia using time series data for the period of 1965-2007. Johansen cointegration technique is employed to examine the long run relationship between economic growth, energy consumption and CO2 emission. Results suggest that there is no cointegrating relationship among the variables; economic growth, energy consumption and CO2 emission in Australia. VAR in first differences is conducted. Generalized impulse response shows that energy consumption has a quite persistent positive impact on CO2 emission but GDP doesn’t have any impact on it. The study also shows bi-directional causal link between energy consumption and economic growth. However there is no causal link between CO2 emission and economic growth. Findings indicate that Australia is still in a comfortable position to pursue pro-growth policies without being over-concerned about CO2 emission. |
Keywords | Australia, cointegration, CO2 emission, energy consumption, economic growth |
ANZSRC Field of Research 2020 | 440499. Development studies not elsewhere classified |
Public Notes | Copyright Tennessee State University College of Business. |
Byline Affiliations | School of Accounting, Economics and Finance |
Department of Mathematics and Computing | |
Institution of Origin | University of Southern Queensland |
https://research.usq.edu.au/item/q1y1x/empirical-link-between-economic-growth-energy-consumption-and-co2-emission-in-australia
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