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The effects of financial development, economic growth, coal consumption and trade openness on environment performance in South Africa

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  • Muhammad, Shahbaz
  • Tiwari, Aviral
  • Muhammad, Nasir

Abstract

This paper explores the effects of financial development, economic growth, coal consumption and trade openness on environmental performance using annual data over the period of 1965-2008 for South African economy. ARDL bounds testing approach to cointegration has used to test the long run relationship among the variables while short run dynamics have been investigated by applying error correction method (ECM). Unit root problem is checked through Saikkonen and Lutkepohl [1] structural break unit root test. Our findings confirmed long run relationship among the variables. Results showed that a rise in economic growth increases energy emissions while financial development lowers it. Coal consumption has significant contribution to deteriorate environment significantly. Trade openness improves environmental quality by lowering the growth of energy pollutants. EKC is also existed.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32723.

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Date of creation: 02 Aug 2011
Date of revision: 10 Aug 2011
Handle: RePEc:pra:mprapa:32723

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Keywords: Coal Consumption; Economic Growth; Environment;

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Cited by:
  1. 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, Elsevier, vol. 36(C), pages 282-287.
  2. Bing Xue & Yong Geng & Katrin Müller & Chengpeng Lu & Wanxia Ren, 2014. "Understanding the Causality between Carbon Dioxide Emission, Fossil Energy Consumption and Economic Growth in Developed Countries: An Empirical Study," Sustainability, MDPI, Open Access Journal, vol. 6(2), pages 1037-1045, February.

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