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Coal Consumption, Industrial Production and CO2 Emissions in China and India

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  • Shahbaz, Muhammad
  • Farhani, Sahbi
  • Ozturk, Ilhan

Abstract

The present study explores the relationship between coal consumption, industrial production and CO2 emissions in case of China and India for the period of 1971-2011. The structural break unit root test and cointegrating approach have been applied. The direction of causal relationship between the variables is investigated by applying the VECM Granger causality test. Our results validate the presence of cointegration among the series in both countries. We also find the existence of inverted U-shaped curve between industrial production and CO2 emissions for India but for China it is U-shaped relationship. Coal consumption adds in CO2 emission. The causality analysis reveals that industrial production and coal consumption Granger cause CO2 emission in India. In case of China, the feedback effect exists between coal consumption and CO2 emissions.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 50618.

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Date of creation: 10 Oct 2013
Date of revision: 12 Oct 2013
Handle: RePEc:pra:mprapa:50618

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Keywords: Coal consumption; Industrial production; CO2 emissions; China; India;

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Citations

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Cited by:
  1. Suleiman Sa ad & Muhammad Shahbaz, 2014. "Price and Income Elasticities of Demand for Oil Products in African Member Countries of OPEC: A Cointegration Analysis," Working Papers, Department of Research, Ipag Business School 2014-486, Department of Research, Ipag Business School.
  2. Julien Chevallier, 2014. "Review of the Stochastic Properties of CO2 Futures Prices," Working Papers, Department of Research, Ipag Business School 2014-565, Department of Research, Ipag Business School.
  3. Omri, Anis & Nguyen, Duc Khuong, 2014. "On the determinants of renewable energy consumption: International evidence," Energy, Elsevier, Elsevier, vol. 72(C), pages 554-560.
  4. Loganathan, Nanthakumar & Muhammad Shahbaz & Roshaiza Taha, 2014. "The Effect Of Green Taxation And Economic Growth On Environment Hazards: The Case Of Malaysia," Working Papers, Department of Research, Ipag Business School 2014-494, Department of Research, Ipag Business School.
  5. Ihtisham Abdul Malik & Ghamz-e-Ali Siyal & Alias Bin Abdullah & Arif Alam & Khalid Zaman, 2014. "Turn on the Lights: Macroeconomic Factors Affecting Renewable in Pakistan," Working Papers, Department of Research, Ipag Business School 2014-518, Department of Research, Ipag Business School.
  6. Walid Chkili & Chaker Aloui & Duc Khuong Nguyen, 2014. "Instabilities in the relationships and hedging strategies between crude oil and US stock markets: do long memory and asymmetry matter?," Working Papers, Department of Research, Ipag Business School 2014-549, Department of Research, Ipag Business School.
  7. Mohamed El Hedi Arouri & Adel Ben Youssef & Hatem M’Henni & Christophe Rault, 2014. "Energy Use and Economic Growth in Africa: A Panel Granger-Causality Investigation," Working Papers, Department of Research, Ipag Business School 2014-481, Department of Research, Ipag Business School.
  8. Riadh Aloui & Mohamed Safouane Ben Aïssa & Duc Khuong Nguyen, 2014. "Conditional dependence structure between oil prices and exchange rates: A copula-GARCH approach," Working Papers, Department of Research, Ipag Business School 2014-564, Department of Research, Ipag Business School.
  9. Mehmet Balcılar & Rıza Demirer & Shawkat Hammoudeh & Duc Khuong Nguyen, 2014. "Risk Spillovers across the Energy and Carbon Markets and Hedging Strategies for Carbon Risk," Working Papers, Department of Research, Ipag Business School 2014-552, Department of Research, Ipag Business School.
  10. Chan, Tze-Haw & Lean, Hooi Hooi & Hooy, Chee Wooi, 2013. "A Macro Assessment of China Effects on Malaysian Exports and Trade Balances," MPRA Paper 48801, University Library of Munich, Germany, revised 01 Aug 2013.
  11. Anis Omri & Duc Khuong Nguyen & Christophe Rault, 2014. "Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneousequation models," Working Papers, Department of Research, Ipag Business School 2014-542, Department of Research, Ipag Business School.
  12. Duc Khuong Nguyen & Ricardo M. Sousa & Gazi Salah Uddin, 2014. "Testing for asymmetric causality from U.S. equity returns to commodity futures returns," Working Papers, Department of Research, Ipag Business School 2014-545, Department of Research, Ipag Business School.
  13. Frederic Teulon, 2014. "Ce que nous devons à James Mead (1907-1995)," Working Papers, Department of Research, Ipag Business School 2014-574, Department of Research, Ipag Business School.

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