Revisiting economic growth and CO2 emissions nexus in Taiwan using a mixed-frequency VAR model

Tsangyao Chang, Chen-Min Hsu, Sheng-Tung Chen, Mei-Chih Wang and Cheng-Feng Wu
Authors registered in the RePEc Author Service: Sheng Tung Chen ()

Economic Analysis and Policy, 2023, vol. 79, issue C, 319-342

Abstract: This study, for the first time in Taiwan, uses the mixed frequency vector autoregressive (MF-VAR) model in the high-frequency dataset to investigate the causal association between economic progress and carbon dioxide emissions over time periods spanning from 1970Q1-2019Q4. This study also includes primary energy consumption as a control variable for analysis since the bias of missing variables could lead to misleading results. In accordance with the forecast error variance decomposition and the Granger causality test, our empirical findings imply that the MF-VAR model has more explanatory power than the traditional VAR model. The empirical LF-VAR model results demonstrate a reciprocal and causal association between economic progress and carbon dioxide (CO2) emissions is supported by evidence; primary energy consumption significantly influences economic progress. Additionally, MF-VAR model results also indicate, in Taiwan, a reciprocal and causal association between economic progress and carbon dioxide emissions as well as between primary energy consumption and economic progress. Based on the finding of the results, this study suggests policy implications to the government that an effective energy strategy should be addressed along with the plan for economic development in Taiwan.

Keywords: Mixed frequency VAR; Energy consumption progress; Economic growth; CO2 emissions; Taiwan (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592623001108
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:79:y:2023:i:c:p:319-342

DOI: 10.1016/j.eap.2023.05.022

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().