Empirical link between economic growth, energy consumption and CO2 emission in Australia

Salahuddin, Mohammad and Khan, Shahjahan ORCID: https://orcid.org/0000-0002-0446-086X (2013) Empirical link between economic growth, energy consumption and CO2 emission in Australia. Journal of Developing Areas, 47 (2). pp. 81-92. ISSN 0022-037X


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.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Copyright Tennessee State University College of Business.
Faculty/School / Institute/Centre: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance (1 Jan 2011 - 30 Jun 2013)
Faculty/School / Institute/Centre: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance (1 Jan 2011 - 30 Jun 2013)
Date Deposited: 18 Apr 2013 08:22
Last Modified: 10 Oct 2014 04:58
Uncontrolled Keywords: Australia, cointegration, CO2 emission, energy consumption, economic growth
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
Fields of Research (2020): 44 HUMAN SOCIETY > 4404 Development studies > 440499 Development studies not elsewhere classified
Socio-Economic Objectives (2008): B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
URI: http://eprints.usq.edu.au/id/eprint/23307

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