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Energy, environment and growth nexus in South Asia

Dr. Muhammad Zeshan () and Vaqar Ahmed ()

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2013, vol. 15, issue 6, 1465-1475

Abstract: The present study investigates the energy, environment and growth nexus for a panel of South Asian countries including Bangladesh, India, Pakistan, Sri Lanka and Nepal. The simultaneous analysis of real GDP, energy consumption and CO 2 emissions is conducted for the period 1980–2010. Levin panel unit root test and Im test panel unit root both indicate that all the variables are I (1). In addition, Kao’s panel Cointegration test specifies a stable long-term relationship between all these variables. Empirical findings show that a 1 % increase in energy consumption increases output by 0.81 % in long run whereas for the same increase in CO 2 emission output falls by 0.17 % in long run. Panel Granger causality tests report short-run causality running from energy consumption to CO 2 emissions and from CO 2 emissions to GDP. Copyright Springer Science+Business Media Dordrecht 2013

Keywords: Energy; Environment; Economic Growth; South Asia (search for similar items in EconPapers)
Date: 2013
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