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The dynamic links between CO2 emissions, economic growth and coal consumption in China and India

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  • Chandran Govindaraju, V.G.R.
  • Tang, Chor Foon

Abstract

In this study, we employ recent and robust estimation techniques of cointegration to provide more conclusive evidence on the nexus of CO2 emissions, economic growth and coal consumption in China and India. Furthermore, the causal relationships among the variables are further examined using the Granger causality test. Our empirical results suggest that the variables are cointegrated in the case of China but not India. In other words, there is a long-run relationship between CO2 emissions, economic growth and coal consumption in China. Granger causality test for China reveal a strong evidence of uni-directional causality running from economic growth to CO2 emissions. Moreover, there is a bi-directional causality between economic growth and coal consumption as well as CO2 emissions and coal consumption in the short and long run. In the case of India, only a short-run causality is detected. Causality between economic growth and CO2 emissions as well as CO2 emissions and coal consumption are bi-directional. Nonetheless, there is only a uni-directional Granger causality running from economic growth to coal consumption in India. The implications of the results are further discussed.

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Bibliographic Info

Article provided by Elsevier in its journal Applied Energy.

Volume (Year): 104 (2013)
Issue (Month): C ()
Pages: 310-318

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Handle: RePEc:eee:appene:v:104:y:2013:i:c:p:310-318

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Related research

Keywords: Coal consumption; CO2 emissions; Economic growth; China; India;

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References

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Cited by:
  1. Yang, Liu & Yan, Haiyan & Lam, Joseph C., 2014. "Thermal comfort and building energy consumption implications – A review," Applied Energy, Elsevier, vol. 115(C), pages 164-173.
  2. Satti, Saqlain Latif & Hassan, Muhammad Shahid & Mahmood, Haider & Shahbaz, Muhammad, 2014. "Coal consumption: An alternate energy resource to fuel economic growth in Pakistan," Economic Modelling, Elsevier, vol. 36(C), pages 282-287.
  3. Shahbaz, Muhammad & Farhani, Sahbi & Ozturk, Ilhan, 2013. "Coal Consumption, Industrial Production and CO2 Emissions in China and India," MPRA Paper 50618, University Library of Munich, Germany, revised 12 Oct 2013.
  4. Sivasakthivel, T. & Murugesan, K. & Sahoo, P.K., 2014. "A study on energy and CO2 saving potential of ground source heat pump system in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 278-293.
  5. Lee, Jui-Yuan & Tan, Raymond R. & Chen, Cheng-Liang, 2014. "A unified model for the deployment of carbon capture and storage," Applied Energy, Elsevier, vol. 121(C), pages 140-148.
  6. Omri, Anis & Kahouli, Bassem, 2014. "Causal relationships between energy consumption, foreign direct investment and economic growth: Fresh evidence from dynamic simultaneous-equations models," Energy Policy, Elsevier, vol. 67(C), pages 913-922.
  7. Chen, Zhan-Ming, 2014. "Inflationary effect of coal price change on the Chinese economy," Applied Energy, Elsevier, vol. 114(C), pages 301-309.

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