On the nexus among carbon dioxide emissions, energy consumption and economic growth in G-7 countries: new insights from
- PDF / 4,961,188 Bytes
- 38 Pages / 439.37 x 666.142 pts Page_size
- 25 Downloads / 209 Views
On the nexus among carbon dioxide emissions, energy consumption and economic growth in G‑7 countries: new insights from the historical decomposition approach Mehmet Balcilar1 · Zeynel Abidin Ozdemir2 · Bedriye Tunçsiper3 · Huseyin Ozdemir4 · Muhammad Shahbaz5 Received: 14 February 2019 / Accepted: 11 December 2019 © Springer Nature B.V. 2019
Abstract This paper investigates the relationship between carbon dioxide emissions, energy consumption and economic growth in the G-7 countries from a historical perspective. To this end, taking time-varying interaction and business cycle into account, we use the historical decomposition method for the first time in the literature. Our results provide evidence that Canada, Italy, Japan and partly the USA need to sacrifice economic growth if they aim to reduce CO2 emissions by decreasing fossil-based energy use. This situation is not valid since the early 1990s for France, throughout the analysis period for Germany and a few exceptions in all periods for the UK. Furthermore, empirical results provide evidence contrary to the EKC hypothesis for Canada, Germany, Japan, the UK and the USA. We found BC-shaped and N-shaped curves for France and Italy, respectively. Although the EKC hypothesis is not valid for Germany and the UK, economic growth has no damaging effect on environmental quality. Also, this effect seems to be cyclical for the USA. Keywords CO2 emissions · Energy consumption · Economic growth · Historical decomposition * Zeynel Abidin Ozdemir [email protected] Mehmet Balcilar [email protected] Bedriye Tunçsiper [email protected] Huseyin Ozdemir [email protected] Muhammad Shahbaz [email protected] 1
Eastern Mediterranean University, Via Mersin 10, Famagusta, Northern Cyprus, Turkey
2
Economic Research Forum, Cairo, Egypt
3
Izmir Democracy University, Izmir, Turkey
4
Gazi University, Ankara, Turkey
5
Montpellier Business School, Montpellier, France
13
Vol.:(0123456789)
M. Balcilar et al.
JEL Classification C22 · Q42 · Q48
1 Introduction The United Nations (UN) member states set 17 Sustainable Development Goals (SDGs) and adopted the 2030 Agenda for Sustainable Development under the United Nations umbrella in 2015. The second annual report named as Sustainable Development Goals Report 2017 was published in 2017 to follow the progress in these 17 goals (UN 2017). Three of the 17 goals mentioned in the report are related to energy, economic growth and climate change. According to the report, global carbon dioxide (CO2) emissions have already exceeded the level of CO2 emissions in 1990. Furthermore, the level of emissions from 2000 to 2010 increased more rapidly compared to the previous three decades. Also, the level of CO2 emissions has risen roughly by 50% since 1990. If the current greenhouse gas emissions continue on a global scale, the temperature at the end of this century is expected to be 1.5 °C higher than the global temperature between 1850 and 1900. A crucial point emphasized in the report is that energy con
Data Loading...
