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Carbon Emissions, Energy Consumption and Income in SAARC Countries

Author

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  • Swaroop R. Chary

    (Swaroop R. Chary (corresponding author), Department of Economics, University of New Mexico, Albuquerque, NM 87131-0001. Email: schary@unm.edu)

  • Alok K. Bohara

    (Alok K. Bohara, Department of Economics, University of New Mexico, Albuquerque, NM 87131-0001.)

Abstract

With global warming and the extreme climate changes in the world, controlling emissions has now become an area of focus for most countries. Although the Kyoto protocol (ratified by over 170 countries) does not require the reduction of emissions by the major SAARC countries, they intend to benefit from technology transfers and proceeds from sale of their carbon credits earned due to reduced emissions so long as there is no impact on their growth objectives. We evaluate the causal relationships between income, energy consumption and carbon emissions in the four major SAARC countries and conclude that emissions are caused (in the Granger sense) by income and energy consumption together. Our analysis suggests that these countries should step up their efforts on reducing emissions and consider reducing energy consumption as a serious environmental policy without having to negatively impact their income growth.

Suggested Citation

  • Swaroop R. Chary & Alok K. Bohara, 2010. "Carbon Emissions, Energy Consumption and Income in SAARC Countries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 11(1), pages 21-30, March.
    • Handle: RePEc:sae:soueco:v:11:y:2010:i:1:p:21-30
    DOI: 10.1177/139156141001100102
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    1. Alam, Arif & Malik, Ihtisham Abdul & Abdullah, Alias Bin & Hassan, Asmadi & Faridullah, & Awan, Usama & Ali, Ghulam & Zaman, Khalid & Naseem, Imran, 2015. "Does financial development contribute to SAARC׳S energy demand? From energy crisis to energy reforms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 818-829.
    2. Abas, N. & Kalair, A. & Khan, N. & Kalair, A.R., 2017. "Review of GHG emissions in Pakistan compared to SAARC countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 990-1016.
    3. GUPTA Monika, 2019. "Decomposing The Role Of Different Factors In Co2 Emissions Increase In South Asia," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 14(1), pages 72-86, April.

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    More about this item

    Keywords

    Energy Consumption; Pollution; Greenhouse Gases; Carbon Emissions; SAARC; Growth; JEL: O13; JEL: Q43; JEL: Q50;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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