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Economic growth, energy consumption and carbone dioxide emissions: recent evidence from panel data analysis for 58 countries

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  • Kais Saidi

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  • Sami Hammami

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Abstract

This paper investigates the causal relationship between energy consumption, $$\hbox {CO}_{2}$$ CO 2 emissions and economic growth using dynamic simultaneous-equation panel data models for 58 countries over the period 1990–2012. We also estimate this relationship for three regional panels; namely, Europe and North Asia, Latin America and the Caribbean, and the Middle East, North Africa, and the sub-Sahara African region. Our results indicate that there is a bidirectional causality relationship between energy consumption and economic growth for the four panels, while our results significantly reject the neo-classical assumption that energy is neutral for growth. Similarly, the results support the occurrence of a bidirectional causality relationship between energy consumption and $$\hbox {CO}_{2}$$ CO 2 emissions for the four panels. A unidirectional causality running from $$\hbox {CO}_{2}$$ CO 2 emissions to economic growth for the Latin American and Caribbean, which implies that, the environment degradation has a negative impact on economic growth. Copyright Springer Science+Business Media Dordrecht 2016

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  • Kais Saidi & Sami Hammami, 2016. "Economic growth, energy consumption and carbone dioxide emissions: recent evidence from panel data analysis for 58 countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 361-383, January.
  • Handle: RePEc:spr:qualqt:v:50:y:2016:i:1:p:361-383
    DOI: 10.1007/s11135-014-0153-1
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    Keywords

    Energy consumption; Economic growth; Carbon emission ; Dynamic simultaneous-equations models; C33; O13; Q43;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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