Skip to main navigation menu Skip to main content Skip to site footer

Research Articles

Vol. 11 No. sp4 (2024): Recent Advances in Agriculture by Young Minds - I

Energy use, emission rate and economic growth linkages among Asian superpowers

DOI
https://doi.org/10.14719/pst.5699
Submitted
10 October 2024
Published
09-12-2024

Abstract

The paper explores the relationship between energy use, economic growth and emission rates for Asian giants such as China, India and Japan. As these countries are the regional economic powers and also the major global carbon emitters, it is inevitable to conduct a research study to find the possible relationship between energy use, emission and growth among these countries by the panel data analysis over the period from 1991 to 2020. Higher energy usage increases greenhouse gas (GHG) emissions in countries, with agricultural sectors, Foreign Direct Investment (FDI) and urban populations contributing significantly. Energy use influences economic growth and emission levels, positively affecting GHG emissions. Furthermore, current initiatives taken by these three Asian superpowers for net zero carbon emission and relevant suggestions are also highlighted for emission reduction without compromising the economic growth and sustainable use of energy resources.

References

  1. Paris Accord. The Paris Agreement. United nations framework convention on climate change (UNFCCC). 2015. Retrieved: http://unfccc.int/paris_agreement/items/9485.php
  2. Zhang D, Guo Y, Taghizadeh-Hesary F. Green finance and energy transition to achieve net-zero emission target. Energy Economics. 2023; 126:106936. https://doi.org/10.1016/j.eneco.2023.106936
  3. Arouri ME, Youssef AB, M'henni H, Rault C. Energy consumption, economic growth and CO2 emissions in Middle East and North African countries. Energy Policy. 2012; 45:342-9. https://doi.org/10.1016/j.enpol.2012.02.042
  4. Farid S, Karim S, Naeem MA, Nepal R, Jamasb T. Co-movement between dirty and clean energy: A time-frequency perspective. Energy Economics. 2023; 119:106565. https://doi.org/10.1016/j.eneco.2023.106565
  5. Blazquez J, Fuentes R, Manzano B. On some economic principles of the energy transition. Energy Policy. 2020; 147:111807. https://doi.org/10.1016/j.enpol.2020.111807
  6. WRI [World Resource Institute] Climate Watch. Datasets accessed on Oct 2023. https://www.wri.org/resources/topic/climate-53/subtopic/international-climate-action-10552. 2014.
  7. Crippa M, Guizzardi D, Solazzo E, Muntean M, Schaaf E, Monforti-Ferrario F, Banja M, Olivier J, Grassi G, Rossi S, Vignati E. GHG emissions of all world countries. Publications Office of the European Union. 2021. https://doi.org/10.2760/074804. https://edgar.jrc.ec.europa.eu/report_2023
  8. Our World in Data. 2021. https://ourworldindata.org/co2-emissions
  9. Ghali KH, El-Sakka MI. Energy use and output growth in Canada: a multivariate cointegration analysis. Energy Economics. 2004; 26(2):225-38. https://doi.org/10.1016/S0140-9883(03)00056-2
  10. Espíndola IB, Ribeiro WC. Cities and climate change: challenges to Brazilian municipal Master Plans. Cadernos Metrópole. 2020; 22:365-96. https://doi.org/10.1590/2236-9996.2020-4802
  11. Salari M, Javid RJ, Noghanibehambari H. The nexus between CO2 emissions, energy consumption, and economic growth in the US. Economic Analysis and Policy. 2021; 69:182-94. https://doi.org/10.1016/j.eap.2020.12.007
  12. Stern, N. Stern Review: The Economics of climate change. U.S. Department of Energy. 2006. www.hm-treasury.gov.uk
  13. IPCC [The intergovernmental panel on climate change]. Synthesis Report. https://www.ipcc.ch/ar6-syr/1988
  14. Kyoto Protocol. UNFCCC [The united nations framework convention on climate change]. 1997. https://unfccc.int/kyoto_protocol
  15. Copenhagen Summit. United nations framework convention on climate change. https://unfccc.int/conference/copenhagen-climate-change-conference-december-2009#:~:text=The%2015%20th%20session%20of%20the
  16. Soytas U, Sari R. Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member. Ecological Economics. 2009; 68(6):1667-75. https://doi.org/10.1016/j.ecolecon.2007.06.014
  17. Markandya A, Golub A, Pedroso-Galinato S. Empirical analysis of national income and SO2 emissions in selected European countries. Environmental and Resource Economics. 2006; 35:221-57. https://doi.org/10.1007/s10640-006-9014-2
  18. Narayan PK, Popp S. The energy consumption-real GDP nexus revisited: Empirical evidence from 93 countries. Economic Modelling. 2012; 29(2):303-8. https://doi.org/10.1016/j.econmod.2011.10.016
  19. Soytas U, Sari R. Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member. Ecological Economics. 2009; 68(6):1667-75. https://doi.org/10.1016/j.ecolecon.2007.06.014
  20. Narayan PK and Narayan S. Carbon dioxide emissions and economic growth: Panel data evidence from developing countries. Energy Policy. 2010; 38(1):661-6. https://doi.org/10.1016/j.enpol.2009.09.005
  21. Managi S. Are there increasing returns to pollution abatement? Empirical analytics of the Environmental Kuznets Curve in pesticides. Ecological Economics. 2006; 58(3):617-36. https://doi.org/10.1016/j.ecolecon.2005.08.011
  22. Perman R and Stern DI. Evidence from panel unit root and cointegration tests that the environmental Kuznets curve does not exist. Australian Journal of Agricultural and Resource Economics. 2003; 47(3):325-47. https://doi.org/10.1111/1467-8489.00216
  23. Arouri ME, Youssef AB, M'henni H, Rault C. Energy consumption, economic growth and CO2 emissions in Middle East and North African countries. Energy Policy. 2012; 45:342-9. https://doi.org/10.1016/j.enpol.2012.02.042
  24. Bhattacharyya R, Ghoshal T. Economic growth and CO2 emissions. Environment, Development and Sustainability. 2010; 12:159-77.https://doi.org/10.1007/s10668-009-9187-2
  25. Lean HH, Smyth R. CO2 emissions, electricity consumption and output in ASEAN. Applied Energy. 2010; 87(6):1858-64. https://doi.org/10.1016/j.apenergy.2010.02.003
  26. Apergis N, Payne JE. Energy consumption and growth in South America: Evidence from a panel error correction model. Energy Economics. 2010; 32(6):1421-6. https://doi.org/10.1016/j.eneco.2010.04.006
  27. Kim HS, Baek J. The environmental consequences of economic growth revisited. Economics Bulletin. 2011; 31(2):1-3. https://ideas.repec.org/a/ebl/ecbull/eb-11-00077.html
  28. Yang G, Wang H, Zhou J, Liu X. Analyzing and predicting the economic growth, energy consumption and CO2 emissions in Shanghai. Energy and Environment Research. 2012; 2(2):1-83. 10.5539/eerv2n2p83. https://ideas.repec.org/a/ibn/eerjnl/v2y2012i2p83.html
  29. Halicioglu F. An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy. 2009; 37(3):1156-64. https://doi.org/10.1016/j.enpol.2008.11.012
  30. Ang JB. Economic development, pollutant emissions and energy consumption in Malaysia. Journal of Policy Modeling. 2008; 30(2):271-8. https://doi.org/10.1016/j.jpolmod.2007.04.010
  31. Boopen S and Harris N. Energy use, emissions, economic growth and trade: evidence from Mauritius. Resource Energy Economics. 2012; 30:50-65. ISSN: 16941225
  32. Dhakal S. Urban energy use and carbon emissions from cities in China and policy implications. Energy Policy. 2009; 37(11):4208-19. https://doi.org/10.1016/j.enpol.2009.05.020
  33. Martínez-Zarzoso I, Maruotti A. The impact of urbanization on CO2 emissions: evidence from developing countries. Ecological Economics. 2011; 70(7):1344-53. https://doi.org/10.1016/j.ecolecon.2011.02.009
  34. Poumanyvong P, Kaneko S. Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis. Ecological Economics. 2010; 70(2):434-44. https://doi.org/10.1016/j.ecolecon.2010.09.029
  35. Ferrantino MJ. International trade, environmental quality and public policy. World Economy. 1997; 20(1). DOI: 10.1111/1467-9701.00057
  36. Grether JM, Mathys NA, De Melo J. Is trade bad for the environment? Decomposing worldwide SO2 emissions 1990-2000. Discussion Paper. 2007. https://pseweb.eu/ydepot/semin/texte0607/MEL2007TRA.pdf
  37. Jalil A, Mahmud SF. Environment Kuznets curve for CO2 emissions: a cointegration analysis for China. Energy Policy. 2009; 37(12):5167-72. https://doi.org/10.1016/j.enpol.2009.07.044
  38. Antweiler W, Copeland BR, Taylor MS. Is free trade good for the environment? American Economic Review. 2001; 91(4):877-908. DOI: 10.1257/aer.91.4.877
  39. Sharma SS. Determinants of carbon dioxide emissions: empirical evidence from 69 countries. Applied Energy. 2011; 88(1):376-82. https://doi.org/10.1016/j.apenergy.2010.07.022
  40. Nasir M, Rehman FU. Environmental Kuznets curve for carbon emissions in Pakistan: an empirical investigation. Energy Policy. 2011; 39(3):1857-64. https://doi.org/10.1016/j.enpol.2011.01.025
  41. Shahbaz M, Tang CF, Shabbir MS. Electricity consumption and economic growth nexus in Portugal using cointegration and causality approaches. Energy Policy. 2011; 39(6):3529-36. https://doi.org/10.1016/j.enpol.2011.03.052
  42. Fan Y, Liu LC, Wu G, Wei YM. Analyzing impact factors of CO2 emissions using the STIRPAT model. Environmental Impact Assessment Review. 2006; 26(4):377-95. https://doi.org/10.1016/j.eiar.2005.11.007
  43. WDI [World Development Indicators]. World Bank database. https://databank.worldbank.or/reports.aspx?source=World-Development-Indicators
  44. FAOSTAT [Food and Agriculture Organization Corporate Statistical Database]. https://www.fao.org/faostat/en/#data/EM
  45. UNCOMTRADE. World Bank. https://wits.worldbank.org/
  46. World Bank database. WITS [World Integrated Trade Solution]. https://wits.worldbank.org/
  47. Abbasi KR, Kirikkaleli D, Altuntas M. Carbon dioxide intensity of GDP and environmental degradation in an emerging country. Environmental Science and Pollution Research. 2022; 29(56):84451-9. https://doi.org/10.1007/s11356-022-21679-9
  48. Saboori B, Sulaiman J, Mohd S. Economic growth and CO2 emissions in Malaysia: a cointegration analysis of the environmental Kuznets curve. Energy Policy. 2012; 51:184-91. https://doi.org/10.1016/j.enpol.2012.08.065
  49. Zhang YJ. The impact of financial development on carbon emissions: An empirical analysis in China. Energy Policy. 2011; 39(4):2197-203. https://doi.org/10.1016/j.enpol.2011.02.026
  50. Kiefer NM. Estimation of fixed effect models for time series of cross-sections with arbitrary intertemporal covariance. Journal of Econometrics. 1980; 14(2):195-202. https://doi.org/10.1016/0304-4076(80)90090-1
  51. Lee BS, Ingram BF. Simulation estimation of time-series models. Journal of Econometrics. 1991; 47(2-3):197-205. https://doi.org/10.1016/0304-4076(91)90098-X
  52. Wooldridge, J. M. Econometrics: panel data methods' In: Meyers, R. (eds.) Encyclopedia of Complexity and Systems Science. Springer, New York. 2009; 2769-2792. http://dx.doi.org/10.1007%2F978-1-4419-7701-4_12
  53. Baltagi, B.H. Econometric analysis of panel data. 2nd ed., New York: John Wiley & Sons. 2001. https://link.springer.com/book/10.1007/978-3-030-53953-5
  54. Greene, W.H. Econometric Analysis. 5th ed., Upper Saddle River, New Jersey: Prentice Hall. 2003. https://worldveg.tind.io/record/15444/
  55. Griffiths WE, Hill RC, Judge GG. Learning and practicing econometrics. New York: John Wiley & Sons. 1993. https://dl.acm.org/doi/abs/10.5555/530164
  56. Gujarati DN. Basic Econometrics, McGraw-Hill. New York. 2003. https://archive.org/details/basiceconometric0004guja
  57. Maddala, G.S. Introduction to Econometrics. 3rd ed., New York: John Wiley & Sons. 2001. https://www.revecap.alde.es/revista/numeros/03/pdf/raymond.pdf
  58. FAO [Food and Agriculture Organization]. https://www.fao.org/faostat/en/#data/EM 2020.
  59. TNC [Third National Communication] Report. Report to UNFCCC to mitigate emissions. 2023. https://www.thehindu.com/sci-tech/energy-and-environment/india-succeeds-in-reducing-emissions-rate-by-33-over-14-years-sources/article67176377.ece
  60. FAO [Food and Agriculture Organization]. 2020. https://www.fao.org/faostat/en/#data/EM
  61. IEA [International Energy Agency]. Energy Statistics. 2020. https://www.iea.org/data-and-statistics
  62. CEEW [Council on Energy, Environment and Water] Report. Van Deursen, Max and Sumit Prasad. Trust and transparency in climate action: Revealing developed countries' emission trajectories'. New Delhi: Council on Energy, Environment and Water. 2023. https://www.ceew.in/sites/default/files/ceew-research-on-trust-and-transparency-in-climate-action.pdf
  63. Zhang C, Lin B. Impact of introducing Chinese certified emission reduction scheme to the carbon market: Promoting renewable energy. Renewable Energy. 2024; 222:119887. https://doi.org/10.1016/j.renene.2023.119887
  64. Cong R, Lo AY, Yu W. The distribution and regional determinants of nationally financed emissions-reduction projects in China. Energy Policy. 2021; 152:112215. https://doi.org/10.1016/j.enpol.2021.112215

Downloads

Download data is not yet available.