TY - JOUR
T1 - CO 2 emissions, energy consumption and economic growth in BRIC countries
AU - Pao, Hsiao-Tien
AU - Tsai, Chung Ming
PY - 2010/12/1
Y1 - 2010/12/1
N2 - This paper examines dynamic causal relationships between pollutant emissions, energy consumption and output for a panel of BRIC countries over the period 1971-2005, except for Russia (1990-2005). In long-run equilibrium energy consumption has a positive and statistically significant impact on emissions, while real output exhibits the inverted U-shape pattern associated with the Environmental Kuznets Curve (EKC) hypothesis with the threshold income of 5.393 (in logarithms). In the short term, changes in emissions are driven mostly by the error correction term and short term energy consumption shocks, as opposed to short term output shocks for each country. Short-term deviations from the long term equilibrium take from 0.770 years (Russia) to 5.848 years (Brazil) to correct. The panel causality results indicate there are energy consumption-emissions bidirectional strong causality and energy consumption-output bidirectional long-run causality, along with unidirectional both strong and short-run causalities from emissions and energy consumption, respectively, to output. Overall, in order to reduce emissions and not to adversely affect economic growth, increasing both energy supply investment and energy efficiency, and stepping up energy conservation policies to reduce unnecessary wastage of energy can be initiated for energy-dependent BRIC countries.
AB - This paper examines dynamic causal relationships between pollutant emissions, energy consumption and output for a panel of BRIC countries over the period 1971-2005, except for Russia (1990-2005). In long-run equilibrium energy consumption has a positive and statistically significant impact on emissions, while real output exhibits the inverted U-shape pattern associated with the Environmental Kuznets Curve (EKC) hypothesis with the threshold income of 5.393 (in logarithms). In the short term, changes in emissions are driven mostly by the error correction term and short term energy consumption shocks, as opposed to short term output shocks for each country. Short-term deviations from the long term equilibrium take from 0.770 years (Russia) to 5.848 years (Brazil) to correct. The panel causality results indicate there are energy consumption-emissions bidirectional strong causality and energy consumption-output bidirectional long-run causality, along with unidirectional both strong and short-run causalities from emissions and energy consumption, respectively, to output. Overall, in order to reduce emissions and not to adversely affect economic growth, increasing both energy supply investment and energy efficiency, and stepping up energy conservation policies to reduce unnecessary wastage of energy can be initiated for energy-dependent BRIC countries.
KW - BRIC
KW - Carbon dioxide emission
KW - Error correction model
UR - http://www.scopus.com/inward/record.url?scp=78049435912&partnerID=8YFLogxK
U2 - 10.1016/j.enpol.2010.08.045
DO - 10.1016/j.enpol.2010.08.045
M3 - Article
AN - SCOPUS:78049435912
SN - 0301-4215
VL - 38
SP - 7850
EP - 7860
JO - Energy Policy
JF - Energy Policy
IS - 12
ER -