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Energy consumption, environmental contaminants, and economic growth: The G8 experience

Author

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  • Ajide, Kazeem

    () (University of Lagos, Nigeria)

  • Ridwan, Ibrahim

    () (University of Lagos, Nigeria)

Abstract

Environmental pollution has increasingly become an issue of global concern because of climate change and consciousness for environmental sustainability. To this end, this paper investigates the relationship between energy consumption, carbon dioxide (CO2) emissions and economic growth of the G8 countries over the period of 56 years spanning 1960 through 2015 using both the Fully Modified and Dynamic OLS estimation techniques. The empirical investigation establishes the critical roles played by energy consumption and CO2 emissions on economic growth but in substantially opposite directions. While that of the former positively enhances economic growth, on the one hand, the latter negatively deters it. In addition, a long-run relationship is equally established but with the varied direction of causality. Finally, the study offers significant policy implications directed at using energy resource efficiently as well as curtailing environmental contaminants.

Suggested Citation

  • Ajide, Kazeem & Ridwan, Ibrahim, 2018. "Energy consumption, environmental contaminants, and economic growth: The G8 experience," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 51, pages 58-83.
  • Handle: RePEc:ris:apltrx:0349
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    Keywords

    energy consumption; environmental contaminants; economic growth;

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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