TY - JOUR
T1 - Modeling the CO 2 emissions, energy use, and economic growth in Russia
AU - Pao, Hsiao-Tien
AU - Yu, Hsiao Cheng
AU - Yang, Yeou Herng
PY - 2011/8
Y1 - 2011/8
N2 - This paper applies the co-integration technique and causality test to examine the dynamic relationships between pollutant emissions, energy use, and real output during the period between 1990 and 2007 for Russia. The empirical results show that in the long-run equilibrium, emissions appear to be energy use elastic and output inelastic. This elasticity suggests high energy use responsiveness to changes in emissions. The output exhibits a negative significant impact on emissions and does not support EKC hypothesis. These indicate that both economic growth and energy conservation policies can reduce emissions and no negative impact on economic development. The causality results indicate that there is a bidirectional strong Granger-causality running between output, energy use and emissions, and whenever a shock occurs in the system, each variable makes a short-run adjustment to restore the long-run equilibrium. The average speed of adjustment is as low as just over 0.26 years. Hence, in order to reduce emissions, the best environmental policy is to increase infrastructure investment to improve energy efficiency, and to step up energy conservation policies to reduce any unnecessary waste of energy. That is, energy conservation is expected to improve energy efficiency, thereby promoting economic growth.
AB - This paper applies the co-integration technique and causality test to examine the dynamic relationships between pollutant emissions, energy use, and real output during the period between 1990 and 2007 for Russia. The empirical results show that in the long-run equilibrium, emissions appear to be energy use elastic and output inelastic. This elasticity suggests high energy use responsiveness to changes in emissions. The output exhibits a negative significant impact on emissions and does not support EKC hypothesis. These indicate that both economic growth and energy conservation policies can reduce emissions and no negative impact on economic development. The causality results indicate that there is a bidirectional strong Granger-causality running between output, energy use and emissions, and whenever a shock occurs in the system, each variable makes a short-run adjustment to restore the long-run equilibrium. The average speed of adjustment is as low as just over 0.26 years. Hence, in order to reduce emissions, the best environmental policy is to increase infrastructure investment to improve energy efficiency, and to step up energy conservation policies to reduce any unnecessary waste of energy. That is, energy conservation is expected to improve energy efficiency, thereby promoting economic growth.
KW - Co-integration technique
KW - Energy use
KW - Granger causality test
KW - Russia
UR - http://www.scopus.com/inward/record.url?scp=79961023140&partnerID=8YFLogxK
U2 - 10.1016/j.energy.2011.06.004
DO - 10.1016/j.energy.2011.06.004
M3 - Article
AN - SCOPUS:79961023140
SN - 0360-5442
VL - 36
SP - 5094
EP - 5100
JO - Energy
JF - Energy
IS - 8
ER -