Environmental degradation: the role of electricity consumption, economic growth and globalisation

Rahman, Mohammad Mafizur (2020) Environmental degradation: the role of electricity consumption, economic growth and globalisation. Journal of Environmental Management, 253:109742. pp. 1-8. ISSN 0301-4797


Abstract

This paper examines the effects of electricity consumption, economic growth and globalisation on the CO2 emissions of top 10 electricity consuming countries. Taking annual data from 1971 to 2013, a panel cointegration approach is adopted where Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) methods are used to examine the long-run effects. Dumitrescu and Hurlin causality test is used to explore the directions of causality between the variables of interest. The empirical results reveal that there is a long-term association among these variables; and electricity consumption and economic growth positively and significantly affect the CO2 emissions in these countries. In contrast, globalisation has significant negative impact on the CO2 emissions implying the improvement of environmental quality. The findings also confirm the existence of the Environmental Kuznets Curve (EKC) hypothesis, the bidirectional causalities between economic growth and CO2 emissions, between electricity consumption and CO2 emissions, and between globalisation and economic growth in the sample countries. A unidirectional causality from economic growth to electricity consumption, from electricity consumption to globalisation and from globalisation to CO2 emissions is also found. Policy guidelines are suggested in line of the findings.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Date Deposited: 18 Nov 2019 23:42
Last Modified: 02 Jun 2021 04:20
Uncontrolled Keywords: CO2 emissions, electricity consumption, economic growth, globalisation, panel data, FMOLS
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis
Socio-Economic Objectives (2008): D Environment > 96 Environment > 9601 Air Quality > 960199 Air Quality not elsewhere classified
B Economic Development > 85 Energy > 8598 Environmentally Sustainable Energy Activities > 859899 Environmentally Sustainable Energy Activities not elsewhere classified
Identification Number or DOI: https://doi.org/10.1016/j.jenvman.2019.109742
URI: http://eprints.usq.edu.au/id/eprint/37325

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