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Growth-Globalisation-Emissions Nexus: The Role of Population in Australia

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  • Muhammad Shahbaz
  • Mita Bhattacharya
  • Khalid Ahmed

Abstract

Australia has sustained a relatively high economic growth rate since the 1980s compared to other developed countries. Per capita CO2 emissions tend to be highest amongst OECD countries, creating new challenges to cut back emissions toward international standards. This study explores the dynamics of economic growth, CO2 emissions (including energy consumption), population growth and globalisation (an index of openness). Our contributions toward the literature in an Australian context are the following. First, we employ a newly developed cointegration test by Bayer-Hanck (2013) to establish the long-term dynamics between CO2 emissions and growth in the presence of population growth and trade openness. Second, we find economic growth is not emissions intensive, while energy consumption is emissions intensive. Third, in an environment of increasing population, Australia needs to be energy efficient at the household level, creating appropriate infrastructure for sustainable population growth. Finally, open trade environments have been conducive to combating emissions. Our findings advocate for continued investment in alternative energy sources, particularly renewables and green technologies, as well as the development of proper infrastructure to reduce per capita energy consumption.

Suggested Citation

  • Muhammad Shahbaz & Mita Bhattacharya & Khalid Ahmed, 2015. "Growth-Globalisation-Emissions Nexus: The Role of Population in Australia," Monash Economics Working Papers 12-15, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:2015-12
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Shahbaz & Mantu Kumar Mahalik & Syed Jawad Hussain Shahzad & Shawkat Hammoudeh, 2019. "Testing the globalization-driven carbon emissions hypothesis: International evidence," International Economics, CEPII research center, issue 158, pages 25-38.
    2. Buhari Dogan & Osman Deger, 2016. "How Globalization and Economic Growth Affect Energy Consumption: Panel Data Analysis in the Sample of Brazil, Russia, India, China Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 6(4), pages 806-813.
    3. Ahmed, Khalid & Shahbaz, Muhammad & Kyophilavong, Phouphet, 2016. "Revisiting the emissions-energy-trade nexus: Evidence from the newly industrializing," MPRA Paper 68680, University Library of Munich, Germany, revised 05 Jan 2016.
    4. Shahbaz, Muhammad & Syed, Jawad & Kumar, Mantu & Hammoudeh, Shawkat, 2017. "Does globalization worsen environmental quality in developed economies?," MPRA Paper 80055, University Library of Munich, Germany, revised 06 Jul 2017.

    More about this item

    Keywords

    growth; energy; population growth; globalisation; emissions;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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