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Does biomass energy consumption mitigate CO2 emissions? The role of economic growth and urbanization: evidence from developing Asia

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  • Jing Gao
  • Lei Zhang

Abstract

This study investigates the relationship among CO2 emissions, biomass energy consumption, economic growth and urbanization for a panel of 13 Asian developing countries. The panel cointegration tests suggest that there is a long-run equilibrium relationship among CO2 emissions, biomass energy consumption, economic growth and urbanization. The findings from the FMOLS estimation indicate that overall biomass energy consumption cannot reduce CO2 emissions. The results of panel causality tests show that there is a short-run unidirectional causality running from GDP to biomass energy consumption and a short-run one-way causality running from GDP and urbanization to CO2 emissions, respectively. As for the long-run relationship, the findings indicate that there is unidirectional causality running from CO2 emissions, biomass energy consumption and urbanization to GDP, respectively, implying that real GDP could play a key role in the adjustment process as the system departs from long-run equilibrium.

Suggested Citation

  • Jing Gao & Lei Zhang, 2021. "Does biomass energy consumption mitigate CO2 emissions? The role of economic growth and urbanization: evidence from developing Asia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 26(1), pages 96-115, January.
    • Handle: RePEc:taf:rjapxx:v:26:y:2021:i:1:p:96-115
    DOI: 10.1080/13547860.2020.1717902
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    Cited by:

    1. Geoffrey Ssebabi Mutumba & Tomson Odongo & Francis Nathan Okurut & Vincent Bagire & Livingstone Senyonga, 2022. "Renewable and non-renewable energy consumption and economic growth in Uganda," SN Business & Economics, Springer, vol. 2(7), pages 1-28, July.
    2. Liu, Zhen & Saydaliev, Hayot Berk & Lan, Jing & Ali, Sajid & Anser, Muhammad Khalid, 2022. "Assessing the effectiveness of biomass energy in mitigating CO2 emissions: Evidence from Top-10 biomass energy consumer countries," Renewable Energy, Elsevier, vol. 191(C), pages 842-851.
    3. Jiying Wu & Olivier Joseph Abban & Yao Hongxing & Alex Dankyi Boadi & Evans Takyi Ankomah-Asare, 2022. "The nexus amid foreign direct investment, urbanization, and CO2 emissions: Evidence from energy grouping along the ECOWAS community," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(8), pages 10183-10207, August.
    4. Yan, Chen & Murshed, Muntasir & Ozturk, Ilhan & Siddik, Abu Bakkar & Ghardallou, Wafa & Khudoykulov, Khurshid, 2023. "Decarbonization blueprints for developing countries: The role of energy productivity, renewable energy, and financial development in environmental improvement," Resources Policy, Elsevier, vol. 83(C).
    5. Maxwell Kongkuah & Hongxing Yao & Veli Yilanci, 2022. "The relationship between energy consumption, economic growth, and CO2 emissions in China: the role of urbanisation and international trade," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 4684-4708, April.
    6. Abdul Rehman & Mohammad Mahtab Alam & Magdalena Radulescu & Rafael Alvarado & Daniela Mihai & Madalina Brutu, 2022. "A Novel Investigation to Explore the Impact of Renewable Energy, Urbanization, and Trade on Carbon Emission in Bhutan," Energies, MDPI, vol. 15(9), pages 1-17, April.
    7. Abdul Rehman & Hengyun Ma & Ilhan Ozturk & Muntasir Murshed & Vishal Dagar, 2021. "The dynamic impacts of CO2 emissions from different sources on Pakistan’s economic progress: a roadmap to sustainable development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17857-17880, December.

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