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Environment Kuznets curve for CO2 emissions: A cointegration analysis for China

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  • Jalil, Abdul
  • Mahmud, Syed F.
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    Abstract

    This study examines the long-run relationship between carbon emissions and energy consumption, income and foreign trade in the case of China by employing time series data of 1975-2005. In particular the study aims at testing whether environmental Kuznets curve (EKC) relationship between CO2 emissions and per capita real GDP holds in the long run or not. Auto regressive distributed lag (ARDL) methodology is employed for empirical analysis. A quadratic relationship between income and CO2 emission has been found for the sample period, supporting EKC relationship. The results of Granger causality tests indicate one way causality runs through economic growth to CO2 emissions. The results of this study also indicate that the carbon emissions are mainly determined by income and energy consumption in the long run. Trade has a positive but statistically insignificant impact on CO2 emissions.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 37 (2009)
    Issue (Month): 12 (December)
    Pages: 5167-5172

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    Handle: RePEc:eee:enepol:v:37:y:2009:i:12:p:5167-5172

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Environment Kuznets curve CO2 emissions Energy consumption;

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    Cited by:
    1. Golam Ahamad, Mazbahul & Nazrul Islam, A.K.M., 2011. "Electricity consumption and economic growth nexus in Bangladesh: Revisited evidences," Energy Policy, Elsevier, vol. 39(10), pages 6145-6150, October.
    2. Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "Energy consumption, pollutant emissions and economic growth in South Africa," Energy Economics, Elsevier, vol. 32(6), pages 1374-1382, November.
    3. Sharif Hossain, Md., 2011. "Panel estimation for CO2 emissions, energy consumption, economic growth, trade openness and urbanization of newly industrialized countries," Energy Policy, Elsevier, vol. 39(11), pages 6991-6999.
    4. Basu, Amrita & Nayak, Narayan Chandra, 2011. "Underlying causes of forest cover change in Odisha, India," Forest Policy and Economics, Elsevier, vol. 13(7), pages 563-569, September.
    5. Park, Soonae & Lee, Youngmi, 2011. "Regional model of EKC for air pollution: Evidence from the Republic of Korea," Energy Policy, Elsevier, vol. 39(10), pages 5840-5849, October.
    6. Shao, Shuai & Yang, Lili & Yu, Mingbo & Yu, Mingliang, 2011. "Estimation, characteristics, and determinants of energy-related industrial CO2 emissions in Shanghai (China), 1994-2009," Energy Policy, Elsevier, vol. 39(10), pages 6476-6494, October.
    7. Shahbaz, Muhammad, 2010. "Does financial instability increase environmental pollution in Pakistan?," MPRA Paper 31360, University Library of Munich, Germany, revised 28 Mar 2011.
    8. Muhammad, Shahbaz & Tiwari, Aviral & Muhammad, Nasir, 2011. "The effects of financial development, economic growth, coal consumption and trade openness on environment performance in South Africa," MPRA Paper 32723, University Library of Munich, Germany, revised 10 Aug 2011.
    9. Jalil, Abdul & Feridun, Mete, 2011. "The impact of growth, energy and financial development on the environment in China: A cointegration analysis," Energy Economics, Elsevier, vol. 33(2), pages 284-291, March.
    10. Nasir, Muhammad & Ur Rehman, Faiz, 2011. "Environmental Kuznets Curve for carbon emissions in Pakistan: An empirical investigation," Energy Policy, Elsevier, vol. 39(3), pages 1857-1864, March.
    11. Muhammad, Shahbaz & Mihai, Mutascu & Parvez, Azim, 2011. "Environmental Kuznets Curve in Romania and the Role of Energy Consumption," MPRA Paper 32254, University Library of Munich, Germany, revised 15 Jul 2011.
    12. Shahbaz, Muhammad & Jalil, Abdul & Dube, Smile, 2010. "Environmental Kuznets curve (EKC): Times series evidence from Portugal," MPRA Paper 27443, University Library of Munich, Germany.
    13. Wang, S.S. & Zhou, D.Q. & Zhou, P. & Wang, Q.W., 2011. "CO2 emissions, energy consumption and economic growth in China: A panel data analysis," Energy Policy, Elsevier, vol. 39(9), pages 4870-4875, September.
    14. Jean-Thomas Bernard & Michael Gavin & Lynda Khalaf & Marcel Voia, 2011. "The Environmental Kuznets Curve: Tipping Points, Uncertainty and Weak Identification," Cahiers de recherche CREATE 2011-4, CREATE.
    15. Meng, Lei & Guo, Ju'e & Chai, Jian & Zhang, Zengkai, 2011. "China's regional CO2 emissions: Characteristics, inter-regional transfer and emission reduction policies," Energy Policy, Elsevier, vol. 39(10), pages 6136-6144, October.
    16. Juha Itkonen, 2010. "Internal Validity of Estimating the Carbon Kuznets Curve by Controlling for Energy Use," Ifo Working Paper Series Ifo Working Paper Nr. 95, Ifo Institute for Economic Research at the University of Munich.
    17. Ghosh, Sajal, 2010. "Examining carbon emissions economic growth nexus for India: A multivariate cointegration approach," Energy Policy, Elsevier, vol. 38(6), pages 3008-3014, June.
    18. Faridul, Islam & Muhammad, Shahbaz, 2012. "Is There an Environmental Kuznets Curve for Bangladesh?," MPRA Paper 38490, University Library of Munich, Germany, revised 30 Apr 2012.
    19. Itkonen, Juha, 2011. "Causal misspecifications in econometric models," MPRA Paper 31397, University Library of Munich, Germany.
    20. Saboori, Behnaz & Soleymani, Abdorreza, 2011. "Environmental Kuznets curve in Indonesia, the role of energy consumption and foreign trade," MPRA Paper 31534, University Library of Munich, Germany.
    21. Shahbaz, Muhammad & Solarin, Sakiru Adebola & Mahmood, Haider, 2012. "Does Financial Development Reduce CO2 Emissions in Malaysian Economy? A Time Series Analysis," MPRA Paper 40603, University Library of Munich, Germany, revised 10 Aug 2012.
    22. Muhammad, Shahbaz & Faridul, Islam & Muhammad Sabihuddin, Butt, 2011. "Financial Development, Energy Consumption and CO2 Emissions: Evidence from ARDL Approach for Pakistan," MPRA Paper 30138, University Library of Munich, Germany, revised 07 Apr 2011.

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