IDEAS home Printed from https://ideas.repec.org/a/eee/ingrde/v4y2025i3s2949753125000372.html
   My bibliography  Save this article

Oil consumption and growth: Is there a threshold effect of greenhouse gases emissions

Author

Listed:
  • Nandnaba, Sarah
  • Hailemariam, Abebe
  • Gupta, Rangan
  • Sheng, Xin

Abstract

The paper empirically examines the threshold effect of GHG(s) emissions on the oil consumption-growth nexus. Using a nonlinear local projection approach and an extended historical dataset from 1890 to 2022, we find that the impact of oil consumption on economic growth is conditional on the level of GHG(s) emissions. More specifically, we find that economies in high-emission regimes face a slowdown in growth while those in low-emission regimes benefit from a positive shock in oil. The results have important policy implications for sustainable growth.

Suggested Citation

  • Nandnaba, Sarah & Hailemariam, Abebe & Gupta, Rangan & Sheng, Xin, 2025. "Oil consumption and growth: Is there a threshold effect of greenhouse gases emissions," Innovation and Green Development, Elsevier, vol. 4(3).
    • Handle: RePEc:eee:ingrde:v:4:y:2025:i:3:s2949753125000372
    DOI: 10.1016/j.igd.2025.100240
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2949753125000372
    Download Restriction: Open-access
    File URL: https://libkey.io/10.1016/j.igd.2025.100240?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Oil consumption; Economic growth; Sustainability; Climate change; Greenhouse GHG(s) emissions; Nonlinear local projection;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ingrde:v:4:y:2025:i:3:s2949753125000372. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/innovation-and-green-development .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.