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A new evidence on the CIS?s environmental pollution-macroeoconmic variables relationship

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  • Ehsan Rasoulinezhad
  • Farhad Taghizadeh-Hesary

Abstract

This research explores the long-run and causal link between renewable and non-renewable (fossil fuels) energy consumption in the Commonwealth of Independent States (CIS) with CO2 emissions and Real GDP per capita, by using three control variables, namely industrialization, the composite trade intensity and financial openness. Using panel data pattern from 1992 to 2016 and employing the Pesaran?s CD test, the CADF panel unit root test, the FMOLS panel cointegration estimation method and panel causality test, the main empirical results provide evidence supporting that in the long-run, there is a uni-directional relationship running from economic growth to renewable energy consumption. Furthermore, in the short-run, there is a uni-directional short-run panel causality running from industrialization- renewable energy use, economic growth, industrialization, financial openness and trade openness to CO2 emissions, and from fossil fuel energy consumption to renewable energy use, while there is a bi-directional trade openness- financial openness, economic growth- renewable energy use, economic growth-non-renewable energy consumption, in-dustrialization- non-renewable energy use, economic growth-industrialization, and CO2 emissions- fossil fuel energy consumption causality relationship.

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  • Ehsan Rasoulinezhad & Farhad Taghizadeh-Hesary, 2017. "A new evidence on the CIS?s environmental pollution-macroeoconmic variables relationship," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2017(1-2), pages 273-293.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2017-001014
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    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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