IDEAS home Printed from https://ideas.repec.org/a/spt/admaec/v13y2023i2f13_2_1.html

Investigating the Relationship Between Canada’s Environmental Quality and GDP-Alternative Measures: An Error Correction Approach

Author

Listed:
  • Sochi Iwuoha
  • Joseph I. Onochie

Abstract

This paper investigates the long-run relationship between Canada’s total greenhouse gas emissions (as an indicator of environmental quality) and economic development captured by gross domestic product (GDP) and GDP-alternative measures (which are argued to be more representative of the wider-scale economic progress, Rani & Mandal, 2020). The three GDP-alternative measures assessed were gross national disposable income (GNDI), human development index (HDI), and index of economic freedom (IEF). Time series properties of per capita greenhouse gas emissions (GHGpc) were evaluated. Augmented Dickey Fuller stationarity test was performed for GHGpc, after which, Johansen tests were performed to evaluate cointegration between GHGpc and the economic growth measures. Error correction models were run to evaluate the long-run behavior of GHGpc with per capita GDP and GNDI (GDPpc and GNDIpc, respectively), HDI, and IEF. GHGpc was found to be cointegrated with both GDPpc and all the GDP-alternative indicators. The paper contributes to the existing literature by demonstrating that Canada’s per capita GHG emission has a long-run relationship with both GDP and GDP-alternative indicators. This study represents the first assessment in the body of knowledge of the relationship between Canada’s national-level total GHG emissions and GDP-alternative measures.

Suggested Citation

  • Sochi Iwuoha & Joseph I. Onochie, 2023. "Investigating the Relationship Between Canada’s Environmental Quality and GDP-Alternative Measures: An Error Correction Approach," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(2), pages 1-1.
    • Handle: RePEc:spt:admaec:v:13:y:2023:i:2:f:13_2_1
    as

    Download full text from publisher

    File URL: http://www.scienpress.com/Upload/AMAE%2fVol%2013_2_1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Al-mulali, Usama & Binti Che Sab, Che Normee, 2012. "The impact of energy consumption and CO2 emission on the economic and financial development in 19 selected countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4365-4369.
    2. Al-mulali, Usama & Binti Che Sab, Che Normee, 2012. "The impact of energy consumption and CO2 emission on the economic growth and financial development in the Sub Saharan African countries," Energy, Elsevier, vol. 39(1), pages 180-186.
    3. R. Santos Alimi, 2014. "ARDL Bounds Testing Approach to Cointegration: A Re-Examination of Augmented Fisher Hypothesis in an Open Economy," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 2(2), pages 103-114, June.
    4. R. Santos Alimi, 2014. "ARDL Bounds Testing Approach to Cointegration: A Re-Examination of Augmented Fisher Hypothesis in an Open Economy," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 2(2), pages 103-114.
    5. Donald W. K. Andrews & Patrik Guggenberger, 2014. "A Conditional-Heteroskedasticity-Robust Confidence Interval for the Autoregressive Parameter," The Review of Economics and Statistics, MIT Press, vol. 96(2), pages 376-381, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rui Xue & KeYu Li & FeiFei Wang & Claude Baron, 2024. "Research Progress and Hot-spot Analysis of The Economic Complexity Research Based on CiteSpace," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(1), pages 1-10.
    2. Li, Yiming & Liu, Yu & Li, Shen, 2024. "Mineral reserves, renewable resources, and sustainable development in developed economies," Resources Policy, Elsevier, vol. 90(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ouyang, Yaofu & Li, Peng, 2018. "On the nexus of financial development, economic growth, and energy consumption in China: New perspective from a GMM panel VAR approach," Energy Economics, Elsevier, vol. 71(C), pages 238-252.
    2. Kazemzadeh, Emad & Fuinhas, José Alberto & Koengkan, Matheus & Shadmehri, Mohammad Taher Ahmadi, 2023. "Relationship between the share of renewable electricity consumption, economic complexity, financial development, and oil prices: A two-step club convergence and PVAR model approach," International Economics, Elsevier, vol. 173(C), pages 260-275.
    3. Mutodi, Knowledge & Maziriri, Eugine Tafadzwa & Chuchu, Tinashe, . "The response of Zimbabwe tobacco exports to real exchange rates volatility: 1980–2019," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 56(2).
    4. Tochukwu Timothy Okoli & Devi Datt Tewari & Eneh George N.O, 2018. "Assessing the Impact of Skilled Labor on Output Growth in South Africa: An ARDL Bound Testing Approach," Journal of Economics and Behavioral Studies, AMH International, vol. 10(2), pages 209-218.
    5. Naoufel Mahfoudh & Imen Gmach, 2021. "The Effects of Fiscal Effort in Tunisia: An Evidence from the ARDL Bound Testing Approach," Economies, MDPI, vol. 9(4), pages 1-20, December.
    6. Iwona Bąk & Emilia Barej-Kaczmarek & Maciej Oesterreich & Beata Szczecińska & Katarzyna Wawrzyniak & Piotr Sulikowski, 2024. "The Impact of the Production and Consumption of Renewable Energy on Economic Growth—The Case of Poland," Sustainability, MDPI, vol. 16(24), pages 1-27, December.
    7. Xiaoxia Shi & Haiyun Liu & Joshua Sunday Riti, 2019. "The role of energy mix and financial development in greenhouse gas (GHG) emissions’ reduction: evidence from ten leading CO2 emitting countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 695-729, October.
    8. Shahzad, Syed Jawad Hussain & Kumar, Ronald Ravinesh & Zakaria, Muhammad & Hurr, Maryam, 2017. "Carbon emission, energy consumption, trade openness and financial development in Pakistan: A revisit," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 185-192.
    9. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran & Bennett, Sara E. & Hall, John H., 2018. "The dynamics between energy consumption patterns, financial sector development and economic growth in Financial Action Task Force (FATF) countries," Energy, Elsevier, vol. 159(C), pages 42-53.
    10. Jindamas Sutthichaimethee & Kuskana Kubaha, 2018. "The Relationship of Causal Factors Affecting the Future Equilibrium Change of Total Final Energy Consumption in Thailand’s Construction Sector under a Sustainable Development Goal: Enriching the SE-VA," Resources, MDPI, vol. 8(1), pages 1-18, December.
    11. Dogan, Eyup & Altinoz, Buket & Madaleno, Mara & Taskin, Dilvin, 2020. "The impact of renewable energy consumption to economic growth: A replication and extension of Inglesi-Lotz (2016)," Energy Economics, Elsevier, vol. 90(C).
    12. Nicholas M. Odhiambo, 2019. "Energy Consumption And Financial Development In South Africa: An Empirical Investigation," Ekonomski pregled, Hrvatsko društvo ekonomista (Croatian Society of Economists), vol. 70(1), pages 41-61.
    13. Muhammad Mohsin & Mad Nasir Shamsudin & Khalid Mahsan Alshammary & Muddassar Sarfraz, 2024. "Exploring the Nexus between CO2 Emissions, Trade, and Sustainable Economic Growth: A Novel NARDL Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 357-366, March.
    14. Shahriyar Mukhtarov & R dvan Karacan & Fuzuli Aliyev & Vuqar Ismayilov, 2022. "The Effect of Financial Development on Energy Consumption: Evidence from Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 243-249.
    15. Priyanka Bose & Bamadev Mahapatra, 2025. "Exploring the synergistic effects of financial revolution and human resources on India's economic transformation," SN Business & Economics, Springer, vol. 5(9), pages 1-36, September.
    16. Shiu-Wan Hung & Chiao-Ming Li & Ming-Yi Shen, 2018. "Regional analysis of the relationship between CO 2 emissions and financial development," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 41(1/2/3/4), pages 2-13.
    17. Al-mulali, Usama & Lee, Janice Y.M., 2013. "Estimating the impact of the financial development on energy consumption: Evidence from the GCC (Gulf Cooperation Council) countries," Energy, Elsevier, vol. 60(C), pages 215-221.
    18. Yannan Zhou & Jixia Huang & Mingxiang Huang & Yicheng Lin, 2019. "The Driving Forces of Carbon Dioxide Equivalent Emissions Have Spatial Spillover Effects in Inner Mongolia," IJERPH, MDPI, vol. 16(10), pages 1-14, May.
    19. Rafindadi, Abdulkadir Abdulrashid & Ozturk, Ilhan, 2016. "Effects of financial development, economic growth and trade on electricity consumption: Evidence from post-Fukushima Japan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1073-1084.
    20. Khan, Muhammad Tariq Iqbal & Yaseen, Muhammad Rizwan & Ali, Qamar, 2019. "Nexus between financial development, tourism, renewable energy, and greenhouse gas emission in high-income countries: A continent-wise analysis," Energy Economics, Elsevier, vol. 83(C), pages 293-310.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:spt:admaec:v:13:y:2023:i:2:f:13_2_1. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Eleftherios Spyromitros-Xioufis (email available below). General contact details of provider: http://www.scienpress.com/ .

    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.