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

Salahuddin, Mohammad and Khan, Shahjahan (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.


Statistics for USQ ePrint 23307
Statistics for this ePrint Item
Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Copyright Tennessee State University College of Business.
Faculty / Department / School: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
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 : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
URI: http://eprints.usq.edu.au/id/eprint/23307

Actions (login required)

View Item Archive Repository Staff Only