Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia

RENEWABLE & SUSTAINABLE ENERGY REVIEWS

卷:25

Review

Shahbaz, Muhammad¹  Hye, Qazi Muhammad Adnan²  Tiwari, Aviral Kumar³  Leitao, Nuno Carlos⁴ 

[1] COMSATS Inst Informat Technol, Dept Management Sci, Lahore, Pakistan

[2] Univ Malaya, Fac Econ & Adm, Dept Econ, Kuala Lumpur, Malaysia

[3] ICFAI Univ Tripura, Fac Management, Fac Appl Econ, Sadar 799120, India

[4] Univ Evora, CEFAGE, Polytechn Inst Santarem, Evora, Portugal

关键词: Growth;    Energy;    Financial development;    CO2 emissions;   

DOI  :  10.1016/j.rser.2013.04.009

来源: Elsevier

【 摘 要 】

This study examines the linkages among economic growth, energy consumption, financial development, trade openness and CO2 emissions over the period of 1975Q(1)-2011Q(4) in case of Indonesia. The stationary analysis is performed by using Zivot-Andrews unit root test and the ARDL bounds testing approach for a long run relationship between the series in the presence of structural breaks. The causality between the concerned variables is examined by the VECM Granger causality technique and robustness of causal analysis is tested by innovative accounting approach (IAA). Our results confirm that the variables are cointegrated; it means that the long run relationship exists in the presence of structural breaks. The empirical findings indicate that economic growth and energy consumption increase CO2 emissions, while financial development and trade openness compact it. The VECM causality analysis has shown the feedback hypothesis between energy consumption and CO2 emissions. Economic growth and CO2 emissions are also interrelated i.e. bidirectional causality. Financial development Granger causes CO2 emissions. The study opens up new policy insights to control the environment from degradation by using energy efficient technologies. Financial development and trade openness can also play their role in improving the environmental quality. (C) 2013 Elsevier Ltd. All rights reserved.

【 授权许可】

Free