The Environmental Kuznets Curve: The Role of Renewable and Non-Renewable Energy Consumption and Trade Openness

Mehdi Ben Jebli (), Slim Ben Youssef and Ilhan Ozturk

MPRA Paper from University Library of Munich, Germany

Abstract: We use panel cointegration techniques to investigate the causal relationship between CO2 emissions, renewable and non-renewable energy consumption, and trade openness in three different models for a panel of twenty five OECD countries over the period 1980-2009. Also the validity of the Environmental Kuznets Curve (EKC) hypothesis has been tested for these countries. Short-run Granger causality tests show the existence of a unidirectional causality running from the square of per capita output to per capita CO2 emissions and per capita non-renewable energy consumption and a unidirectional causality running from per capita real exports to per capita CO2 emissions. There is an indirect short-run causality running from per capita output to per capita non-renewable energy consumption. In the long-run, the FMOLS and DOLS estimates suggest that per capita GDP and per capita non-renewable energy consumption have a positive impact on per capita CO2 emissions. The long-run estimates suggest that the square of per capita GDP, per capita renewable energy consumption, and per capita real exports and imports have a negative impact on per capita CO2 emissions. Therefore, more trade openness and more use of renewable energy are efficient strategies to combat global warming.

Keywords: Environmental Kuznets curve; Renewable energy; Non-renewable energy; Trade openness; CO2 emissions; Panel cointegration techniques. (search for similar items in EconPapers)
JEL-codes: C33 F18 Q42 Q43 (search for similar items in EconPapers)
Date: 2013-11
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env, nep-int and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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