Understanding the Causality between Carbon Dioxide Emission, Fossil Energy Consumption and Economic Growth in Developed Countries: An Empirical Study

Bing Xue, Yong Geng, Katrin Müller, Chengpeng Lu and Wanxia Ren
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Bing Xue: Key Laboratory of Pollution Ecology and Environmental Engineering, Institute of Applied Ecology, Chinese Academy of Sciences, Shenyang 110016, China
Yong Geng: Key Laboratory of Pollution Ecology and Environmental Engineering, Institute of Applied Ecology, Chinese Academy of Sciences, Shenyang 110016, China
Katrin Müller: Institute for Applied Material Flow Management, University of Applied Sciences Trier, Birkenfeld D-55768, Germany
Chengpeng Lu: Key Laboratory of Pollution Ecology and Environmental Engineering, Institute of Applied Ecology, Chinese Academy of Sciences, Shenyang 110016, China
Wanxia Ren: Key Laboratory of Pollution Ecology and Environmental Engineering, Institute of Applied Ecology, Chinese Academy of Sciences, Shenyang 110016, China

Sustainability, 2014, vol. 6, issue 2, 1-9

Abstract: Issues on climate change have been recognized as serious challenges for regional sustainable development both at a global and local level. Given the background that most of the artificial carbon emissions are resulted from the energy consumption sector and the energy is also the key element resource for economic development, this paper investigated the relationship between CO 2 emission, fossil energy consumption, and economic growth in the period 1970–2008 of nine European countries, based on the approach of Granger Causality Test, followed by the risk analysis on impacts of CO 2 reduction to local economic growth classified by the indicator of causality degree. The results show that there are various feedback causal relationships between carbon emission, energy consumption and economic growth, with both unidirectional and dual-directional Granger causality. The impact of reducing CO 2 emission to economic growth varies between countries as well.

Keywords: climate change; carbon reduction; regional disparity; causality test; European countries (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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