Energy consumption, CO2 emissions, and economic growth: An ethical dilemma
Ioannis Chatziantoniou and
George Filis ()
Renewable and Sustainable Energy Reviews, 2017, vol. 68, issue P1, 808-824
In this study we examine the dynamic interrelationship in the output–energy–environment nexus by applying panel vector autoregression (PVAR) and impulse response function analyses to data on energy consumption (and its subcomponents), carbon dioxide emissions and real GDP in 106 countries classified by different income groups over the period 1971–2011. Our results reveal that the effects of the various types of energy consumption on economic growth and emissions are heterogeneous on the various groups of countries. Moreover, causality between total economic growth and energy consumption is bidirectional, thus making a case for the feedback hypothesis. However, we cannot report any statistically significant evidence that renewable energy consumption, in particular, is conducive to economic growth, a fact that weakens the argument that renewable energy consumption is able to promote growth in a more efficient and environmentally sustainable way. Finally, in analysing the case for an inverted U-shaped EKC, we find that the continued process of growth aggravates the greenhouse gas emissions phenomenon. In this regard, we cannot provide any evidence that developed countries may actually grow-out of environmental pollution. In the light of these findings, the efficacy of recent government policies in various countries to promote renewable energy consumption as a means for sustainable growth is questioned. Put differently, there seems to be an ethical dilemma, between high economic growth rates and unsustainable environment and low or zero economic growth and environmental sustainability.
Keywords: Energy consumption; Economic growth; CO2 emission; Panel vector auto regression; Panel impulse response function (search for similar items in EconPapers)
JEL-codes: C33 O13 O44 P28 P48 Q42 Q56 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:68:y:2017:i:p1:p:808-824
Ordering information: This journal article can be ordered from
http://www.elsevier. ... 600126/bibliographic
Access Statistics for this article
Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski
More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().