The nexus between renewable energy, economic growth, trade, urbanisation and environmental quality: a comparative study for Australia and Canada

Rahman, Mohammad Mafizur and Vu, Xuan-Binh (Benjamin) (2020) The nexus between renewable energy, economic growth, trade, urbanisation and environmental quality: a comparative study for Australia and Canada. Renewable Energy, 155. pp. 617-627. ISSN 0960-1481


Abstract

Using a comparative approach, this study examines the nexus among renewable energy 7 consumption, economic growth, trade, urbanisation and CO2 emissions for Australia and Canada 8 for the period 1960-2015. The Autoregressive Distributed Lag (ARDL) bounds tests are used to 9 explore the long-run relationships amongst the selected variables and the causal relationships are 10 examined by the vector error correction model (VECM) Granger causality tests. The findings 11 suggest that there is evidence of the long run relationships amongst the variables. The results in 12 Australia indicate that in both the long run and short run, economic growth increases CO2 13 emissions, whereas in the short run, the trade and renewable energy consumptions decrease CO2 14 emissions. The VECM causality tests for Australia indicate that in the short-run, the economic 15 growth, trade, and renewable energy consumption Granger cause CO2 emissions; whereas the 16 long-run causal relationships are found among CO2 emissions, economic growth, trade and 17 renewable energy consumption. In the case of Canada, the results show that in both the long run 18 and short run, trade increases CO2 emissions, while in the long run the economic growth and 19 urban population increase CO2 emissions. The VECM causality analyses show the long-run 20 bidirectional causality among CO2 emissions, economic growth, and renewable energy 21 consumption. In addition, the CO2 emissions tended to decrease in Australia but not in Canada 22 after each country officially ratified the Kyoto Protocol in 2007 and 2002, respectively. Policy 23 recommendations are made based on these findings.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version in accordance with the copyright policy of the publisher.
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: 29 Jun 2020 02:15
Last Modified: 20 Jul 2020 03:42
Uncontrolled Keywords: CO2 emissions; economic growth; trade; urbanisation; renewable energy; Australia; Canada
Fields of Research (2008): 05 Environmental Sciences > 0599 Other Environmental Sciences > 059999 Environmental Sciences not elsewhere classified
14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objectives (2008): B Economic Development > 91 Economic Framework > 9103 International Trade > 910399 International Trade not elsewhere classified
B Economic Development > 85 Energy > 8505 Renewable Energy > 850599 Renewable Energy not elsewhere classified
B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
Identification Number or DOI: https://doi.org/10.1016/j.renene.2020.03.135
URI: http://eprints.usq.edu.au/id/eprint/38652

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