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The Dynamic Nexus of Fossil Energy Consumption, Temperature and Carbon Emissions: Evidence from Simultaneous Equation Model

Author

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  • Chengtao Deng

    (Postdoctoral Workstation of Guangxi Rural Credit Union and Southwestern University of Finance and Economics, Nanning 530000, China)

  • Zixin Guo

    (School of Business, Zhengzhou University, Zhengzhou 450001, China)

  • Xiaoyue Huang

    (School of Economics and Management, Nanning Normal University, Nanning 530001, China)

  • Tao Shen

    (The Institute for Sustainable Development, Macau University of Science and Technology, Macao 999078, China)

Abstract

With the continuous increase in global fossil energy consumption, carbon dioxide emissions and the greenhouse effect have gradually increased. This study uses a simultaneous equations model to explore the dynamic nexus of fossil energy consumption, temperature, and carbon emissions in OECD and non-OECD countries, with panel data from 2004 to 2019. The results show that the improvement of international competitiveness has reduced the frequency of extreme weather in OECD and non-OECD countries, significantly reducing fossil energy consumption in non-OECD countries and carbon emissions in OECD countries. Sustainable economic growth has significantly reduced fossil energy consumption in OECD countries but increased carbon emissions, especially in non-OECD countries. In addition, in the short term, the improvement of international competitiveness has significantly reduced fossil energy consumption and carbon emissions in OECD and non-OECD countries. In the long term, the improvement of international competitiveness has a greater impact on reducing fossil energy consumption and carbon emissions in non-OECD countries and has a significant impact on reducing the frequency of extreme weather in OECD countries. Moreover, the long-term impacts of sustainable economic growth on fossil energy consumption and carbon emissions are more significant.

Suggested Citation

  • Chengtao Deng & Zixin Guo & Xiaoyue Huang & Tao Shen, 2023. "The Dynamic Nexus of Fossil Energy Consumption, Temperature and Carbon Emissions: Evidence from Simultaneous Equation Model," IJERPH, MDPI, vol. 20(3), pages 1-17, January.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:3:p:2042-:d:1044263
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