IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v125y2019icp103-109.html
   My bibliography  Save this article

Does economic growth eat up environmental improvements? Electricity production and fossil fuel emission in OECD countries 1980–2014

Author

Listed:
  • Dyrstad, Jan Morten
  • Skonhoft, Anders
  • Christensen, Magnus Quist
  • Ødegaard, Eirik Theie

Abstract

We analyze to what extent electricity production by non-fossil fuel replaces fossil fueled electricity production in 27 OECD-countries 1980–2014. Depending on model specification, the long run replacement coefficient is in the range of minus 0.4–1.0, which is considerably larger than found in other studies. This means that an increase in non-fossil fuel based electricity production by 10 kWh/capita replaces fossil fuel based production in the range 4–10 kWh/capita. Over all the estimated replacement is not sufficient to prevent economic growth from increasing fossil based electricity production, thus eating up environmental improvements. However, we identify two important exceptions to this. First, countries with a ‘low’ level of fossil based production have an Environmental Kuznets Curve (EKC) relationship when we allow for separate effects of the economic downturn after the Great Recession 2008–2009. Second, results for the EU countries indicate that the EU Emission Trading System, and possibly EU country specific policy instruments, have influenced the mix of electricity production in the intended direction.

Suggested Citation

  • Dyrstad, Jan Morten & Skonhoft, Anders & Christensen, Magnus Quist & Ødegaard, Eirik Theie, 2019. "Does economic growth eat up environmental improvements? Electricity production and fossil fuel emission in OECD countries 1980–2014," Energy Policy, Elsevier, vol. 125(C), pages 103-109.
    • Handle: RePEc:eee:enepol:v:125:y:2019:i:c:p:103-109
    DOI: 10.1016/j.enpol.2018.10.051
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421518307055
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2018.10.051?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Katsuhisa Uchiyama, 2016. "Environmental Kuznets Curve Hypothesis and Carbon Dioxide Emissions," SpringerBriefs in Economics, Springer, number 978-4-431-55921-4, October.
    2. Richard York, 2012. "Do alternative energy sources displace fossil fuels?," Nature Climate Change, Nature, vol. 2(6), pages 441-443, June.
    3. Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C.S. & Jansson, Bengt-Owe & Levin, Simon & Mäler, Karl-Göran & Perrings, Charles & Pimentel, David, 1996. "Economic growth, carrying capacity, and the environment," Environment and Development Economics, Cambridge University Press, vol. 1(1), pages 104-110, February.
    4. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447.
    5. Yuanan Hu & Hefa Cheng, 2017. "Displacement efficiency of alternative energy and trans-provincial imported electricity in China," Nature Communications, Nature, vol. 8(1), pages 1-9, April.
    6. Nicolini, Marcella & Tavoni, Massimo, 2017. "Are renewable energy subsidies effective? Evidence from Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 412-423.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stefano Bartolini & Francesco Sarracino, 2021. "Happier and Sustainable. Possibilities for a post-growth society," Department of Economics University of Siena 855, Department of Economics, University of Siena.
    2. Ortega-Izquierdo, Margarita & Río, Pablo del, 2020. "An analysis of the socioeconomic and environmental benefits of wind energy deployment in Europe," Renewable Energy, Elsevier, vol. 160(C), pages 1067-1080.
    3. Zhongdong Yu & Wei Liu & Liming Chen & Serkan Eti & Hasan Dinçer & Serhat Yüksel, 2019. "The Effects of Electricity Production on Industrial Development and Sustainable Economic Growth: A VAR Analysis for BRICS Countries," Sustainability, MDPI, vol. 11(21), pages 1-13, October.
    4. Anna Poskart & Magdalena Skrzyniarz & Marcin Sajdak & Monika Zajemska & Andrzej Skibiński, 2021. "Management of Lignocellulosic Waste towards Energy Recovery by Pyrolysis in the Framework of Circular Economy Strategy," Energies, MDPI, vol. 14(18), pages 1-17, September.
    5. Tehseen Akhtar & Asif Ur Rehman & Mohsin Jamil & Syed Omer Gilani, 2020. "Impact of an Energy Monitoring System on the Energy Efficiency of an Automobile Factory: A Case Study," Energies, MDPI, vol. 13(10), pages 1-20, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ryan P. Thombs, 2018. "Has the relationship between non-fossil fuel energy sources and CO2 emissions changed over time? A cross-national study, 2000–2013," Climatic Change, Springer, vol. 148(4), pages 481-490, June.
    2. Javier Sánchez García & Emilio Galdeano Gómez & Adrián Segura Ecseki, 2022. "Environmental challenges for EU productive sectors: an analysis through Kuznets curves," SN Business & Economics, Springer, vol. 2(11), pages 1-25, November.
    3. Hadi Sasana & Jaka Aminata, 2019. "Energy Subsidy, Energy Consumption, Economic Growth, and Carbon Dioxide Emission: Indonesian Case Studies," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 117-122.
    4. Brausmann, Alexandra & Bretschger, Lucas, 2018. "Economic development on a finite planet with stochastic soil degradation," European Economic Review, Elsevier, vol. 108(C), pages 1-19.
    5. Johnny Flentø, 2021. "Ending Poverty in All its Forms Everywhere," DERG working paper series 21-13, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    6. Boukraine, Wissem, 2020. "The finance-inequality nexus in the BRICS countries: evidence from an ARDL bound testing approach," MPRA Paper 101976, University Library of Munich, Germany.
    7. Opschoor, J. (Hans) B., 1995. "Ecospace and the fall and rise of throughput intensity," Ecological Economics, Elsevier, vol. 15(2), pages 137-140, November.
    8. Kaika, Dimitra & Zervas, Efthimios, 2013. "The environmental Kuznets curve (EKC) theory. Part B: Critical issues," Energy Policy, Elsevier, vol. 62(C), pages 1403-1411.
    9. Kym Anderson & Kimie Harada, 2019. "How Much Wine Is Really Produced and Consumed in China, Hong Kong, and Japan?," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 15, pages 379-404, World Scientific Publishing Co. Pte. Ltd..
    10. Bradford David F. & Fender Rebecca A & Shore Stephen H. & Wagner Martin, 2005. "The Environmental Kuznets Curve: Exploring a Fresh Specification," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-28, June.
    11. Ghimire, Narishwar & Woodward, Richard T., 2013. "Under- and over-use of pesticides: An international analysis," Ecological Economics, Elsevier, vol. 89(C), pages 73-81.
    12. Dreher, Axel & Fuchs, Andreas & Langlotz, Sarah, 2019. "The effects of foreign aid on refugee flows," European Economic Review, Elsevier, vol. 112(C), pages 127-147.
    13. Jha, Raghbendra & Murthy, K. V. Bhanu, 2003. "An inverse global environmental Kuznets curve," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 352-368, June.
    14. Njangang, Henri & Nembot Ndeffo, Luc & Noubissi Domguia, Edmond & Fosto Koyeu, Prevost, 2018. "The long-run and short-run effects of foreign direct investment, foreign aid and remittances on economic growth in African countries," MPRA Paper 89747, University Library of Munich, Germany.
    15. Ehigiamusoe, Kizito Uyi & Lean, Hooi Hooi & Smyth, Russell, 2020. "The moderating role of energy consumption in the carbon emissions-income nexus in middle-income countries," Applied Energy, Elsevier, vol. 261(C).
    16. Shuaibing Zhang & Kaixu Zhao & Shuoyang Ji & Yafang Guo & Fengqi Wu & Jingxian Liu & Fei Xie, 2022. "Evolution Characteristics, Eco-Environmental Response and Influencing Factors of Production-Living-Ecological Space in the Qinghai–Tibet Plateau," Land, MDPI, vol. 11(7), pages 1-26, July.
    17. G. Mythili & Shibashis Mukherjee, 2011. "Examining Environmental Kuznets Curve for river effluents in India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 13(3), pages 627-640, June.
    18. George Halkos & Iacovos Psarianos, 2016. "Exploring the effect of including the environment in the neoclassical growth model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(3), pages 339-358, July.
    19. Théo Benonnier & Katrin Millock & Vis Taraz, 2022. "Long-term migration trends and rising temperatures: the role of irrigation," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 11(3), pages 307-330, July.
    20. Chakraborty, Adrij, 2017. "Colonial Origins and Comparative Development: Institutions Matter," MPRA Paper 86320, University Library of Munich, Germany, revised Feb 2018.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:125:y:2019:i:c:p:103-109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.