Theoretical and Applied Economics
No. 4 / 2020 (625), Winter
Fossil fuel consumption, economic growth and CO2 emissions. Causality evinced from the BRICS world
Guru Nanak Dev University, India
Dr. Baljit KAUR
Guru Nanak Dev University, India
Abstract. The present study looks at the long term relationship among fossil fuel consumption, economic growth and CO2 emissions in the BRICS economy. The data runs from the period 1990- 2014. The unit root tests prove that the data contain unit root following which Pedroni’s and Kao’s cointegration test is applied. The results of cointegration prove that there is a long term relationship that exists. The long run estimates from DOLS and FMOLS show that increase in fossil fuel consumption will increase growth but at the same time with more carbon emissions the level of growth will decrease. Additionally increase in economic growth will reduce the amount of CO2 emissions thus favouring Kuznets inverted U hypothesis. Finally causality results are arrived at by using Dumitrescu-Hurlin panel causality technique. The results from causality tests show that unidirectional causality from energy to GDP; bidirectional relationship between emissions and GDP and unidirectional causality from fuel consumption to environmental degradation. The causality directions serve important policy implications for the government of the emerging economies to focus more on non-conventional sources of energy so as to keep the environment in the best of its health and at the same time make growth sustainable in the long run.
Contents
The European Union in the face of the prospect of achieving major objectives in the conditions of the pandemic and economic-financial crisis
What determines the portfolio investment flows to Central and Eastern European Countries in the European Union 2001-2017?
Analysis of the correlation between taxation indicators and economic growth at the macroeconomic level in European Union and Romania
Measuring Adobe Company performance from the perspective of a Complex Adaptive System
Welfare enhancing uncertainty
Business process modeling. Using Unified Modeling Language to streamline the design of the TO-BE system within a company
Static and dynamic analysis of intra-industry trade of BRICS countries
Fossil fuel consumption, economic growth and CO2 emissions. Causality evinced from the BRICS world
Methods used in risk financing
Is there a relationship between economic welfare and innovation performance? Evidence from selected European countries
Analyzing Romania GDP: Final consumption, gross investment, and net exports influence compared to previously published models
Analysis of the natural movement of the population under the spectrum of the health crisis
On the relationship between economic growth and government debt for Bulgaria. Test of the Reinhart-Rogoff hypothesis
Testifying the role of regulatory environment in trade facilitation: Impact on intra-regional trade in South-Asia
India and trade blocs: A gravity model analysis
Predicting the volatility in stock return of emerging economy: An empirical approach
Portfolio optimization with VaR approach: A comparative analysis for Japan, London, New York and India
Income-dependent impacts of financial development and human capital on economic growth. A non-stationary panel analysis
Monetary policy and exchange rate pass-through in India
Impact of medium of instruction in education on economic growth and development
Institutions and economic growth: A comparative analysis of developing and developed countries based on institutionalized social technologies index
Exports, imports and economic growth in India: An empirical analysis
BEPS – A challenge for the increasing budget revenues in the process of digitalization
Implementation of public policies. The compatibility of the model of public policy with the target space of the policy
Fiscal sustainability in Romania