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Analysis of Causality Between Economic Growth, Energy Consumption and Carbon Dioxide Emissions in 4 ASEAN Countries

Author

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  • Nunung Nuryartono

    (International Center for Applied Finance and Economics (InterCAFE). Bogor Agricultural University)

  • Muhamad Amin Rifai

    (Department of Economics, Faculty of Economics and Management, Bogor Agricultural University, Indonseia)

Abstract

Economic growth and energy consumption in 4 ASEAN countries increase in every year. Energy consumption in 4 ASEAN countries is dominated by fossil fuels which increases the carbon dioxide emission. This study examines the causality relationship between economic growth, energy consumption and carbon dioxide emissions in 4 ASEAN countries during the period of 1975 -2013. Methods in this study using Granger Causality and Vector Error Correction Model. The result shows that economic growth and energy consumption in Indonesia and Singapore are not interconnected. While in Malaysia and Thailand, there is a direct causal relationship. A one direction relationship between economic growth and carbon dioxide emissions happened in Indonesia and Thailand, while in Malaysia and Singapore did not exist. Causal relationship between energy consumption and carbon dioxide emissions occurs Indonesia, whereas in other countries did t exist. The respond of every variables on the shock in other variables are different in each country.

Suggested Citation

  • Nunung Nuryartono & Muhamad Amin Rifai, 2017. "Analysis of Causality Between Economic Growth, Energy Consumption and Carbon Dioxide Emissions in 4 ASEAN Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 7(6), pages 141-152.
    • Handle: RePEc:eco:journ2:2017-06-18
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    References listed on IDEAS

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    Cited by:

    1. Fazal, Rizwan & Rehman, Syed Aziz Ur & Rehman, Atiq Ur & Bhatti, Muhammad Ishaq & Hussain, Anwar, 2021. "Energy-environment-economy causal nexus in Pakistan: A graph theoretic approach," Energy, Elsevier, vol. 214(C).
    2. Krishna Murthy Inumula & Seema Singh & Sandip Solanki, 2020. "Energy Consumption and Agricultural Economic Growth Nexus: Evidence from India," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 545-552.
    3. Seyfettin Erdo an & Durmu a r Y ld r m & Ayfer Gedikli, 2019. "Investigation of Causality Analysis between Economic Growth and CO2 Emissions: The Case of BRICS T Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 430-438.
    4. Hadi Sasana & Jaka Aminata, 2019. "Energy Subsidy, Energy Consumption, Economic Growth, and Carbon Dioxide Emission: Indonesian Case Studies," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 117-122.
    5. Hafezali Iqbal Hussain & Beata Slusarczyk & Fakarudin Kamarudin & Hassanudin Mohd Thas Thaker & Katarzyna Szczepańska-Woszczyna, 2020. "An Investigation of an Adaptive Neuro-Fuzzy Inference System to Predict the Relationship among Energy Intensity, Globalization, and Financial Development in Major ASEAN Economies," Energies, MDPI, vol. 13(4), pages 1-17, February.
    6. Chiang-Ching Tan & Syvester Tan, 2018. "Energy Consumption, CO2 Emissions and Economic Growth: A Causality Analysis for Malaysian Industrial Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 254-258.

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    More about this item

    Keywords

    ASEAN; carbon dioxide emissions; economic growth; energy consumption; granger causality; VECM;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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