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CO2 Emissions and Economic Growth of SAARC Countries: Evidence from a Panel VAR Analysis

Author

Listed:
  • Sweety Pandey

    (Banaras Hindu University, Department of Economics)

  • Mrutyunjaya Mishra

    (Banaras Hindu University, Department of Economics)

Abstract

The paper examined the causality in both static and dynamic framework between CO2 emissions and economic growth of SAARC countries over the period 1972-2010 using panel approach. The paper presents the facts obtained on the basis of panel unit root test, panel-co-integration test , panel VECM and Impulse Response functions (IRFs) and Variance decomposition (VDs). IRFs and VDs analysis indicate that CO2 emissions, GDP have positive impact on each other. The result from the application of VECM analysis suggests unidirectional causality running from economic growth to CO2 emissions. The result found contradicts the Environmental Kuznets Curve hypothesis.

Suggested Citation

  • Sweety Pandey & Mrutyunjaya Mishra, 2015. "CO2 Emissions and Economic Growth of SAARC Countries: Evidence from a Panel VAR Analysis," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 1(2), pages 23-33, December.
    • Handle: RePEc:ana:journl:v:1:y:2015:i:2:p:23-33
    DOI: 10.22440/EconWorld.J.2015.1.2.SP.0009
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    References listed on IDEAS

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    Cited by:

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    2. Rashid Latief & Yusheng Kong & Sohail Ahmad Javeed & Usman Sattar, 2021. "Carbon Emissions in the SAARC Countries with Causal Effects of FDI, Economic Growth and Other Economic Factors: Evidence from Dynamic Simultaneous Equation Models," IJERPH, MDPI, vol. 18(9), pages 1-22, April.
    3. Shi, Kaifang & Yu, Bailang & Zhou, Yuyu & Chen, Yun & Yang, Chengshu & Chen, Zuoqi & Wu, Jianping, 2019. "Spatiotemporal variations of CO2 emissions and their impact factors in China: A comparative analysis between the provincial and prefectural levels," Applied Energy, Elsevier, vol. 233, pages 170-181.
    4. Liton Chandra Voumik & Mohammad Iqbal Hossain & Md. Hasanur Rahman & Raziya Sultana & Rahi Dey & Miguel Angel Esquivias, 2023. "Impact of Renewable and Non-Renewable Energy on EKC in SAARC Countries: Augmented Mean Group Approach," Energies, MDPI, vol. 16(6), pages 1-19, March.
    5. Sweety Pandey & Mrutyunjaya Mishra, 2021. "Investigating Environmental Kuznets Curve: A Panel Data Analysis for India," Review of Development and Change, , vol. 26(2), pages 137-152, December.
    6. Nepal, Rabindra & Yadav, Miklesh Prasad & Katoch, Rupinder & Gupta, Himani & Kumar, Atul, 2024. "Co-movement between carbon emissions and forex market: A tale of COVID-19 outbreak and Russia-Ukraine invasion," Resources Policy, Elsevier, vol. 90(C).
    7. Awan, Ashar & Abbasi, Kashif Raza & Rej, Soumen & Bandyopadhyay, Arunava & Lv, Kangjuan, 2022. "The impact of renewable energy, internet use and foreign direct investment on carbon dioxide emissions: A method of moments quantile analysis," Renewable Energy, Elsevier, vol. 189(C), pages 454-466.

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    More about this item

    Keywords

    SAARC; economic growth; CO2 emissions; Panel VAR;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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