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The Long-Run Effect of Carbon Emission and Economic Growth in European Countries: A Computational Analysis through Vector Error Correction Model

Author

Listed:
  • Gyanendra Singh Sisodia

    (College of Business Administration, Ajman University, United Arab Emirates,)

  • Hemant Kumar Sah

    (Alliance University, Bangalore, India,)

  • Hajer Kratou

    (College of Business Administration, Ajman University, United Arab Emirates,)

  • Rajesh Mohnot

    (College of Business Administration, Ajman University, United Arab Emirates)

  • Alberto Ibanez

    (College of Business Administration, University of Science and Technology of Fujairah, United Arab Emirates; & Universidad Ecotec, K.M 13.5 Samborondon, Ecuador,)

  • Bhumika Gupta

    (Institut Mines- Telecom Business School, LITEM, Univ Evry, IMT-BS, Universit Paris-Saclay, Department Management, Marketing and Strategy, 9, Rue Charles Fourier, 91011, Evry, France; & Alliance University, Bangalore, India.)

Abstract

The paper seeks to examine the association that exists among a number of energy-related variables such as energy use, renewable energy use, carbon pollutants and the economic growth of European Union countries. The examination of variables focus on twenty-one years of data from 2000 to 2020 using a multidimensional data framework. The findings come from empirical analysis carried out using panel VECM model and associated tests such as, panel unit root test, cointegration and the causality one. The different variables indicated above have positive effects on the growth of economies in various EU member states. Results obtained from the use of the heterogeneous causality test indicated that there is an indirect causality between energy use and the rate at which economies develop. Based on the findings obtained from the study, there is a need for EU member states to establish policies that should help to enhance efficiency in energy use to promote economic development.

Suggested Citation

  • Gyanendra Singh Sisodia & Hemant Kumar Sah & Hajer Kratou & Rajesh Mohnot & Alberto Ibanez & Bhumika Gupta, 2023. "The Long-Run Effect of Carbon Emission and Economic Growth in European Countries: A Computational Analysis through Vector Error Correction Model," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 271-278, May.
    • Handle: RePEc:eco:journ2:2023-03-32
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Energy; economic development; renewable energy; GDP; carbon release;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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