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The impact of total factor productivity on energy consumption and CO2 emissions in G20 countries

Author

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  • Panayiotis Tzeremes

    (Department of Accounting and Finance, University of Thessaly)

Abstract

This study investigates the nexus among total factor productivity, energy consumption and CO2 emissions in G20 countries for time series data from 1971 to 2017 by employing time-varying causality test. By and large, we have found nonlinear causality among the variables. Specifically, the direction from TFP to CO2 is demonstrated for Argentina, France, South Korea, UK and USA. In addition, bidirectional interconnectedness is displayed for four countries (Italy, Japan, Saudi Arabia and Turkey). Furthermore, the one-way relationship between TFP and EC differs among the countries. The causality from EC to TFP is obtained for Brazil, South Africa and Turkey, the vice versa linkage is confirmed for Argentina, Russia, UK and USA, and we have two two-way causalities for Italy and Japan. Lastly, we dissected the validity of the Environmental Kuznets curve hypothesis between TFP to CO2. Our outcomes insinuate the validity of the Environmental Kuznets curve for Turkey, the inverted-U shaped for Argentina and Saudi Arabia, N-shaped for France, Italy and South Africa and inverted-U shaped curve for Japan, UK and USA. In view of the results, some crucial policy implications could be suggested, such as that the impact of TFP policies influenced the EC and CO2.

Suggested Citation

  • Panayiotis Tzeremes, 2020. "The impact of total factor productivity on energy consumption and CO2 emissions in G20 countries," Economics Bulletin, AccessEcon, vol. 40(3), pages 2179-2192.
    • Handle: RePEc:ebl:ecbull:eb-19-00408
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    File URL: http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I3-P190.pdf
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    References listed on IDEAS

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    Cited by:

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    3. Yanliang Yu & Shahzad Alvi & Saira Tufail & Shahzada M. Naeem Nawaz & Michael Yao-Ping Peng & Nauman Ahmad, 2022. "Investigating the role of health, education, energy and pollution for explaining total factor productivity in emerging economies," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-7, December.
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    5. Bright Akwasi Gyamfi & Murad A. Bein & Festus Fatai Adedoyin & Festus Victor Bekun, 2022. "To what extent are pollutant emission intensified by international tourist arrivals? Starling evidence from G7 Countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 7896-7917, June.

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    More about this item

    Keywords

    Total factor productivity; energy consumption; CO2 emissions; Environmental Kuznets curve; time-varying causality;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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