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The Relationship between Energy Consumption, Economic Growth and Carbon Dioxide Emission: The Case of South Africa

Author

Listed:
  • Hlalefang Khobai

    (Department of Economics, Nelson Mandela Metropolitan University, South Africa,)

  • Pierre Le Roux

    (Department of Economics, Nelson Mandela Metropolitan University, South Africa)

Abstract

This paper investigates the relationship between energy consumption, carbon dioxide (CO2 ) emission, economic growth, trade openness and urbanization for South Africa. The annual data for the period between 1971 and 2013 is employed. The results of Johansen test of co-integration show that there is a long run relationship between energy consumption, CO2 emission, economic growth, trade openness and urbanization in South Africa. The results for the existence and direction of vector error correction model (VECM) Granger causality indicates that there is bidirectional causality flowing between energy consumption and economic growth in the long run. The VECM results further found a unidirectional causality flowing from CO2 emissions, economic growth, trade openness and urbanization to energy consumption and from energy consumption, CO2 emissions, trade openness and urbanization to economic growth. These results posit a fresh perspective for creating energy policies that will boost economic growth in South Africa.

Suggested Citation

  • Hlalefang Khobai & Pierre Le Roux, 2017. "The Relationship between Energy Consumption, Economic Growth and Carbon Dioxide Emission: The Case of South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 102-109.
  • Handle: RePEc:eco:journ2:2017-03-13
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    References listed on IDEAS

    as
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    7. Usama Al-Mulali & Ilhan Ozturk & Hooi Lean, 2015. "The influence of economic growth, urbanization, trade openness, financial development, and renewable energy on pollution in Europe," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 79(1), pages 621-644, October.
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    Citations

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    Cited by:

    1. Hlalefang Khobai, 2018. "Renewable energy consumption and economic growth in Indonesia. Evidence from the ARDL bounds testing approach," Working Papers 1806, Department of Economics, Nelson Mandela University, revised Feb 2018.
    2. Hlalefang Khobai & Sanderson Abel & Pierre Le Roux, 2017. "A Review of the Nexus Between Energy consumption and Economic growth in the Brics countries," Working Papers 1715, Department of Economics, Nelson Mandela University, revised Nov 2017.
    3. Tafadzwa Ruzive & Thando Mkhombo & Simbarashe Mhaka & Nomahlubi Mavikela & Andrew Phiri, 2019. "Electricity Intensity and Unemployment in South Africa: A Quantile Regression Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 31-40.
    4. Hlalefang Khobai, 2018. "Renewable energy consumption and economic growth in Argentina: A multivariate co-integration analysis," Working Papers 1805, Department of Economics, Nelson Mandela University, revised Jan 2018.
    5. Sinazo Guduza & Andrew Phiri, 2017. "Efficient market hypothesis: Evidence from the JSE equity and bond markets," Working Papers 1718, Department of Economics, Nelson Mandela University, revised Dec 2017.
    6. Babalwa Mapapu & Andrew Phiri, 2017. "Carbon emissions and economic growth in South Africa: A quantile regression approach," Working Papers 1713, Department of Economics, Nelson Mandela University, revised Oct 2017.
    7. repec:eco:journ2:2018-03-33 is not listed on IDEAS
    8. Andrew Phiri, 2019. "Economic growth, environmental degradation and business cycles in Eswatini," Working Papers 1901, Department of Economics, Nelson Mandela University, revised Jan 2019.
    9. repec:eco:journ2:2017-04-17 is not listed on IDEAS
    10. repec:ags:stagec:280974 is not listed on IDEAS
    11. repec:eco:journ2:2017-06-5 is not listed on IDEAS
    12. Hlalefang Khobai & Pierre Le Roux, 2018. "Does Renewable Energy Consumption Drive Economic Growth: Evidence from Granger-Causality Technique," International Journal of Energy Economics and Policy, Econjournals, vol. 8(2), pages 205-212.
    13. Khobai, Hlalefang, 2017. "Electricity consumption and Economic growth: A panel data approach to Brics countries," MPRA Paper 82460, University Library of Munich, Germany.
    14. repec:eco:journ2:2019-03-16 is not listed on IDEAS

    More about this item

    Keywords

    Energy Consumption; Economic Growth; Carbon Dioxide Emission; South Africa;

    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

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