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Examining the links among economic growth, energy consumption, and CO 2 emission with linear and nonlinear causality tests

Kefan Wang, Bangzhu Zhu (), Ping Wang () and Yi-Ming Wei

Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, 2016, vol. 81, issue 2, 1147-1159

Abstract: Understanding the causal relationships among economic growth, energy consumption, and CO 2 emission is important for formulating energy conservation and emission reduction policies. In this paper, we explore the causal relationships among economic growth, energy consumption, and CO 2 emission in China during 1978–2012 by using both the linear and nonlinear causality tests. The obtained results show that the links examined by the linear and nonlinear causality tests are not all same. Both linear and nonlinear causality tests indicate a unidirectional causality from CO 2 emission to GDP and a bi-directional causality between energy consumption and CO 2 emission. Linear causality test indicates a unidirectional causality from energy consumption to GDP, while nonlinear causality test indicates a unidirectional causality from GDP to energy consumption. Finally, policy recommendations are proposed for achieving the target of coordinated, sustainable development of China. Copyright Springer Science+Business Media Dordrecht 2016

Keywords: Economic growth; Energy consumption; CO 2 emission; China; Linear and nonlinear causality tests (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s11069-015-2124-9

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