Oil Consumption, CO 2 Emission, and Economic Growth: Evidence from the Philippines

Kyoung-Min Lim, Seul-Ye Lim and Seung-Hoon Yoo ()
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Kyoung-Min Lim: Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 139-743, Korea
Seul-Ye Lim: Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 139-743, Korea

Sustainability, 2014, vol. 6, issue 2, 1-13

Abstract: This paper attempts to investigate the short- and long-run causality issues among oil consumption, CO 2 emissions, and economic growth in the Philippines by using time series techniques and annual data for the period 1965–2012. Tests for unit root, co-integration, and Granger-causality tests based on an error-correction model are presented. Three important findings emerge from the investigation. First, there is bi-directional causality between oil consumption and economic growth, which suggests that the Philippines should endeavor to overcome the constraints on oil consumption to achieve economic growth. Second, bi-directional causality between oil consumption and CO 2 emissions is found, which implies that the Philippines needs to improve efficiency in oil consumption in order not to increase CO 2 emissions. Third, uni-directional causality running from CO 2 emissions to economic growth is detected, which means that growth can continue without increasing CO 2 emissions.

Keywords: oil consumption; CO 2 emissions; economic growth; Granger-causality; Philippines (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 (24)

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