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Revisiting the Causal Relationship between CO2 Emissions and Economic Growth in 12 Asian Countries: Evidence from a Bootstrap Panel Causality Test

Author

Listed:
  • Kuei-Chiu Lee

    (Department of Finance, Feng Chia University, Taichung, Taiwan)

  • Hsiao-Ping Chu

    (Department of Business Administration, Ling Tung University, Taichung, Taiwan)

  • Tsangyao Chang

    (Department of Finance, Feng Chia University, Taichung, Taiwan)

  • Roula Inglesi-Lotz

    (Department of Economics, University of Pretoria)

Abstract

This study applies bootstrap panel Granger causality methods to investigate the relationship between CO2 emissions and economic growth using data from 12 Asian countries over the period of 1965-2010. Both real GDP per capita and CO2 emissions data are used in this study. Empirical results indicate that one-way Granger causality running from CO2 emissions to economic growth for Pakistan, one-way Granger causality running from economic growth to CO2 emissions for India and Japan, a bi-directional causality for Thailand and Vietnam and neutrality for the remaining 7 countries (i.e., China, Indonesia, Malaysia, Philippines, Singapore, South Korea, and Taiwan). Our results have important policy implications for the 12 Asian countries under study.

Suggested Citation

  • Kuei-Chiu Lee & Hsiao-Ping Chu & Tsangyao Chang & Roula Inglesi-Lotz, 2014. "Revisiting the Causal Relationship between CO2 Emissions and Economic Growth in 12 Asian Countries: Evidence from a Bootstrap Panel Causality Test," Working Papers 201413, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:201413
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    Cited by:

    1. Ke Wang & Jianjun Zhang & Yuhuan Geng & Lianxiang Xiao & Ze Xu & Yongheng Rao & Xiangli Zhou, 2020. "Differential spatial-temporal responses of carbon dioxide emissions to economic development: empirical evidence based on spatial analysis," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(2), pages 237-260, February.

    More about this item

    Keywords

    Economic Growth; CO2 Emissions; Asian Countries; Bootstrap;
    All these keywords.

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