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Oil Consumption, CO 2 Emission, and Economic Growth: Evidence from the Philippines

Listed author(s):
  • Kyoung-Min Lim

    ()

    (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 139-743, Korea)

  • Seul-Ye Lim

    ()

    (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 139-743, Korea)

  • Seung-Hoon Yoo

    ()

    (Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 139-743, Korea)

Registered author(s):

    This paper attempts to investigate the short- and long-run causality issues among oil consumption, CO 2 emissions, and economic growth in the Philippines by using time series techniques and annual data for the period 1965–2012. Tests for unit root, co-integration, and Granger-causality tests based on an error-correction model are presented. Three important findings emerge from the investigation. First, there is bi-directional causality between oil consumption and economic growth, which suggests that the Philippines should endeavor to overcome the constraints on oil consumption to achieve economic growth. Second, bi-directional causality between oil consumption and CO 2 emissions is found, which implies that the Philippines needs to improve efficiency in oil consumption in order not to increase CO 2 emissions. Third, uni-directional causality running from CO 2 emissions to economic growth is detected, which means that growth can continue without increasing CO 2 emissions.

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    Article provided by MDPI, Open Access Journal in its journal Sustainability.

    Volume (Year): 6 (2014)
    Issue (Month): 2 (February)
    Pages: 1-13

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    Handle: RePEc:gam:jsusta:v:6:y:2014:i:2:p:967-979:d:33200
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