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Income level and the emissions, energy, and growth nexus: Evidence from Asia and the Pacific

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  • Le, Thai-Ha
  • Quah, Euston

Abstract

This study examines the relationships between carbon emissions, energy consumption, and economic growth for 14 selected countries in Asia and the Pacific during the period 1984–2012. Based on panel cointegration test results, we show that there is a long-run relationship between carbon emissions, energy consumption, and economic growth. The Fully Modified OLS estimators of the panel, as well as the sub-panel of lower-to-upper-middle-income countries, provide evidence against the Environmental Kuznets Curve (EKC) hypothesis. Evidence from the panel of high income countries is, however, consistent with the EKC hypothesis. The findings of causality tests suggest that carbon emissions in the region could be reduced through energy conservation policy measures without harming economic growth.

Suggested Citation

  • Le, Thai-Ha & Quah, Euston, 2018. "Income level and the emissions, energy, and growth nexus: Evidence from Asia and the Pacific," International Economics, Elsevier, vol. 156(C), pages 193-205.
    • Handle: RePEc:eee:inteco:v:156:y:2018:i:c:p:193-205
    DOI: 10.1016/j.inteco.2018.03.002
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    Keywords

    Carbon emissions; Energy consumption; Economic growth; Asia and the Pacific;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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