IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i11p3165-d564611.html
   My bibliography  Save this article

Economic Development, CO 2 Emissions and Energy Use Nexus-Evidence from the Danube Region Countries

Author

Listed:
  • Eva Litavcová

    (Department of Mathematical Methods and Managerial Informatics, Faculty of Management, University of Prešov, 080 01 Prešov, Slovakia)

  • Jana Chovancová

    (Department of Environmental Management, Faculty of Management, University of Prešov, 080 01 Prešov, Slovakia)

Abstract

The aim of this study is to examine the empirical cointegration, long-run and short-run dynamics and causal relationships between carbon emissions, energy consumption and economic growth in 14 Danube region countries over the period of 1990–2019. The autoregressive distributed lag (ARDL) bounds testing methodology was applied for each of the examined variables as a dependent variable. Limited by the length of the time series, we excluded two countries from the analysis and obtained valid results for the others for 26 of 36 ARDL models. The ARDL bounds reliably confirmed long-run cointegration between carbon emissions, energy consumption and economic growth in Austria, Czechia, Slovakia, and Slovenia. Economic growth and energy consumption have a significant impact on carbon emissions in the long-run in all of these four countries; in the short-run, the impact of economic growth is significant in Austria. Likewise, when examining cointegration between energy consumption, carbon emissions, and economic growth in the short-run, a significant contribution of CO 2 emissions on energy consumptions for seven countries was found as a result of nine valid models. The results contribute to the information base essential for making responsible and informed decisions by policymakers and other stakeholders in individual countries. Moreover, they can serve as a platform for mutual cooperation and cohesion among countries in this region.

Suggested Citation

  • Eva Litavcová & Jana Chovancová, 2021. "Economic Development, CO 2 Emissions and Energy Use Nexus-Evidence from the Danube Region Countries," Energies, MDPI, vol. 14(11), pages 1-23, May.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:11:p:3165-:d:564611
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/11/3165/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/11/3165/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. de Bruyn, S. M. & van den Bergh, J. C. J. M. & Opschoor, J. B., 1998. "Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves," Ecological Economics, Elsevier, vol. 25(2), pages 161-175, May.
    2. Shahbaz, Muhammad & Shafiullah, Muhammad & Papavassiliou, Vassilios G. & Hammoudeh, Shawkat, 2017. "The CO2–growth nexus revisited: A nonparametric analysis for the G7 economies over nearly two centuries," Energy Economics, Elsevier, vol. 65(C), pages 183-193.
    3. Ozturk, Ilhan & Aslan, Alper & Kalyoncu, Huseyin, 2010. "Energy consumption and economic growth relationship: Evidence from panel data for low and middle income countries," Energy Policy, Elsevier, vol. 38(8), pages 4422-4428, August.
    4. Pesaran, M.H. & Shin, Y., 1995. "An Autoregressive Distributed Lag Modelling Approach to Cointegration Analysis," Cambridge Working Papers in Economics 9514, Faculty of Economics, University of Cambridge.
    5. Balado-Naves, Roberto & Baños-Pino, José Francisco & Mayor, Matías, 2018. "Do countries influence neighbouring pollution? A spatial analysis of the EKC for CO2 emissions," Energy Policy, Elsevier, vol. 123(C), pages 266-279.
    6. Narayan, Paresh Kumar & Smyth, Russell, 2008. "Energy consumption and real GDP in G7 countries: New evidence from panel cointegration with structural breaks," Energy Economics, Elsevier, vol. 30(5), pages 2331-2341, September.
    7. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    8. Turner, Karen & Hanley, Nick, 2011. "Energy efficiency, rebound effects and the environmental Kuznets Curve," Energy Economics, Elsevier, vol. 33(5), pages 709-720, September.
    9. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
    10. Vural, Gulfer, 2020. "Renewable and non-renewable energy-growth nexus: A panel data application for the selected Sub-Saharan African countries," Resources Policy, Elsevier, vol. 65(C).
    11. Kan, Siyi & Chen, Bin & Chen, Guoqian, 2019. "Worldwide energy use across global supply chains: Decoupled from economic growth?," Applied Energy, Elsevier, vol. 250(C), pages 1235-1245.
    12. Chalvatzis, Konstantinos J. & Ioannidis, Alexis, 2017. "Energy supply security in the EU: Benchmarking diversity and dependence of primary energy," Applied Energy, Elsevier, vol. 207(C), pages 465-476.
    13. Apergis, Nicholas & Payne, James E., 2010. "Renewable energy consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(1), pages 656-660, January.
    14. Cosimo Magazzino, 2016. "The relationship between real GDP, CO2 emissions, and energy use in the GCC countries: A time series approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1152729-115, December.
    15. Christopher F Baum, 2005. "Stata: The language of choice for time-series analysis?," Stata Journal, StataCorp LP, vol. 5(1), pages 46-63, March.
    16. Philip Chukwunonso Bosah & Shixiang Li & Gideon Kwaku Minua Ampofo & Daniel Akwasi Asante & Zhanqi Wang, 2020. "The Nexus Between Electricity Consumption, Economic Growth, and CO 2 Emission: An Asymmetric Analysis Using Nonlinear ARDL and Nonparametric Causality Approach," Energies, MDPI, vol. 13(5), pages 1-24, March.
    17. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    18. Siksnelyte, Indre & Zavadskas, Edmundas Kazimieras & Bausys, Romualdas & Streimikiene, Dalia, 2019. "Implementation of EU energy policy priorities in the Baltic Sea Region countries: Sustainability assessment based on neutrosophic MULTIMOORA method," Energy Policy, Elsevier, vol. 125(C), pages 90-102.
    19. Yanjie Zhang & Wei Song & Shun Fu & Dazhi Yang, 2020. "Decoupling of Land Use Intensity and Ecological Environment in Gansu Province, China," Sustainability, MDPI, vol. 12(7), pages 1-15, April.
    20. Ang, James B., 2007. "CO2 emissions, energy consumption, and output in France," Energy Policy, Elsevier, vol. 35(10), pages 4772-4778, October.
    21. Omri, Anis, 2014. "An international literature survey on energy-economic growth nexus: Evidence from country-specific studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 951-959.
    22. Ewing, Bradley T. & Payne, James E. & Caporin, Massimilano, 2022. "The Asymmetric Impact of Oil Prices and Production on Drilling Rig Trajectory: A correction," Resources Policy, Elsevier, vol. 79(C).
    23. Tapio, Petri, 2005. "Towards a theory of decoupling: degrees of decoupling in the EU and the case of road traffic in Finland between 1970 and 2001," Transport Policy, Elsevier, vol. 12(2), pages 137-151, March.
    24. Xiaoxiao Zhang & Shuifa Ke, 2020. "Linkage Analysis of the Resources, Population, and Economy in China’s Key State-Owned Forest Areas," Sustainability, MDPI, vol. 12(9), pages 1-17, May.
    25. Xue-ting Jiang & Min Su & Rongrong Li, 2018. "Investigating the Factors Influencing the Decoupling of Transport-Related Carbon Emissions from Turnover Volume in China," Sustainability, MDPI, vol. 10(9), pages 1-17, August.
    26. Sebastian Kripfganz & Daniel C. Schneider, 2020. "Response Surface Regressions for Critical Value Bounds and Approximate p‐values in Equilibrium Correction Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(6), pages 1456-1481, December.
    27. Yong Yang & Junsong Jia & Chundi Chen, 2020. "Residential Energy-Related CO 2 Emissions in China’s Less Developed Regions: A Case Study of Jiangxi," Sustainability, MDPI, vol. 12(5), pages 1-28, March.
    28. Apergis, Nicholas & Payne, James E., 2010. "Coal consumption and economic growth: Evidence from a panel of OECD countries," Energy Policy, Elsevier, vol. 38(3), pages 1353-1359, March.
    29. Piotr F. Borowski, 2020. "Zonal and Nodal Models of Energy Market in European Union," Energies, MDPI, vol. 13(16), pages 1-21, August.
    30. Jamiu Adetola Odugbesan & Husam Rjoub, 2020. "Relationship Among Economic Growth, Energy Consumption, CO2 Emission, and Urbanization: Evidence From MINT Countries," SAGE Open, , vol. 10(2), pages 21582440209, April.
    31. Mehmet Balcilar & Zeynel Abidin Ozdemir & Bedriye Tunçsiper & Huseyin Ozdemir & Muhammad Shahbaz, 2020. "On the nexus among carbon dioxide emissions, energy consumption and economic growth in G-7 countries: new insights from the historical decomposition approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 8097-8134, December.
    32. Weiguo Fan & Mengmeng Meng & Jianchang Lu & Xiaobin Dong & Hejie Wei & Xuechao Wang & Qing Zhang, 2020. "Decoupling Elasticity and Driving Factors of Energy Consumption and Economic Development in the Qinghai-Tibet Plateau," Sustainability, MDPI, vol. 12(4), pages 1-20, February.
    33. Ozturk, Ilhan & Al-Mulali, Usama, 2015. "Natural gas consumption and economic growth nexus: Panel data analysis for GCC countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 998-1003.
    34. Turgut Türsoy, 2017. "Causality between Stock Prices and Exchange Rates in Turkey: Empirical Evidence from the ARDL Bounds Test and a Combined Cointegration Approach," IJFS, MDPI, vol. 5(1), pages 1-10, March.
    35. Kacper Szulecki, 2016. "European energy governance and decarbonization policy: learning from the 2020 strategy," Climate Policy, Taylor & Francis Journals, vol. 16(5), pages 543-547, July.
    36. Huajun Liu & Mingyu Lei & Naixin Zhang & Guangjie Du, 2019. "The causal nexus between energy consumption, carbon emissions and economic growth: New evidence from China, India and G7 countries using convergent cross mapping," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-18, May.
    37. Jana Chovancova & Juraj Tej, 2020. "Decoupling economic growth from greenhouse gas emissions: the case of the energy sector in V4 countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 15(2), pages 235-251, June.
    38. Lijun Zhang & Caiyun Kou & Ji Zheng & Yu Li, 2018. "Decoupling Analysis of CO 2 Emissions in Transportation Sector from Economic Growth during 1995–2015 for Six Cities in Hebei, China," Sustainability, MDPI, vol. 10(11), pages 1-15, November.
    Full references (including those not matched with items on IDEAS)

    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. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    2. Bilgili, Faik & Koçak, Emrah & Bulut, Ümit & Kuşkaya, Sevda, 2017. "Can biomass energy be an efficient policy tool for sustainable development?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 830-845.
    3. Sofien, Tiba & Omri, Anis, 2016. "Literature survey on the relationships between energy variables, environment and economic growth," MPRA Paper 82555, University Library of Munich, Germany, revised 14 Sep 2016.
    4. Cerdeira Bento, João Paulo & Moutinho, Victor, 2016. "CO2 emissions, non-renewable and renewable electricity production, economic growth, and international trade in Italy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 142-155.
    5. Janusz Myszczyszyn & Błażej Suproń, 2021. "Relationship among Economic Growth (GDP), Energy Consumption and Carbon Dioxide Emission: Evidence from V4 Countries," Energies, MDPI, vol. 14(22), pages 1-20, November.
    6. Saboori, Behnaz & Sulaiman, Jamalludin, 2013. "Environmental degradation, economic growth and energy consumption: Evidence of the environmental Kuznets curve in Malaysia," Energy Policy, Elsevier, vol. 60(C), pages 892-905.
    7. Alvarez-Herranz, Agustin & Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Cantos, José María, 2017. "Energy innovation and renewable energy consumption in the correction of air pollution levels," Energy Policy, Elsevier, vol. 105(C), pages 386-397.
    8. Marques, António Cardoso & Fuinhas, José Alberto & Neves, Sónia Almeida, 2018. "Ordinary and Special Regimes of electricity generation in Spain: How they interact with economic activity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1226-1240.
    9. Shakoor Ahmed & Khorshed Alam & Afzalur Rashid & Jeff Gow, 2020. "Militarisation, Energy Consumption, CO2 Emissions and Economic Growth in Myanmar," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(6), pages 615-641, August.
    10. Janusz Myszczyszyn & Błażej Suproń, 2022. "Relationship among Economic Growth, Energy Consumption, CO 2 Emission, and Urbanization: An Econometric Perspective Analysis," Energies, MDPI, vol. 15(24), pages 1-18, December.
    11. Luqman, Muhammad & Ahmad, Najid & Bakhsh, Khuda, 2019. "Nuclear energy, renewable energy and economic growth in Pakistan: Evidence from non-linear autoregressive distributed lag model," Renewable Energy, Elsevier, vol. 139(C), pages 1299-1309.
    12. Mehmet Balcilar & Zeynel Abidin Ozdemir & Huseyin Ozdemir & Muhammad Shahbaz, 2018. "Carbon dioxide emissions, energy consumption and economic growth: The historical decomposition evidence from G-7 countries," Working Papers 15-41, Eastern Mediterranean University, Department of Economics.
    13. Mehmet Balcilar & Zeynel Abidin Ozdemir & Bedriye Tunçsiper & Huseyin Ozdemir & Muhammad Shahbaz, 2020. "On the nexus among carbon dioxide emissions, energy consumption and economic growth in G-7 countries: new insights from the historical decomposition approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 8097-8134, December.
    14. Caraiani, Chirața & Lungu, Camelia I. & Dascălu, Cornelia, 2015. "Energy consumption and GDP causality: A three-step analysis for emerging European countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 198-210.
    15. Bilgili, Faik & Kuşkaya, Sevda & Toğuç, Nurhan & Muğaloğlu, Erhan & Koçak, Emrah & Bulut, Ümit & Bağlıtaş, H. Hilal, 2019. "A revisited renewable consumption-growth nexus: A continuous wavelet approach through disaggregated data," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 1-19.
    16. Destek, Mehmet Akif, 2016. "Renewable energy consumption and economic growth in newly industrialized countries: Evidence from asymmetric causality test," Renewable Energy, Elsevier, vol. 95(C), pages 478-484.
    17. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    18. Liu, Hong & Wang, Chang & Wen, Fenghua, 2020. "Asymmetric transfer effects among real output, energy consumption, and carbon emissions in China," Energy, Elsevier, vol. 208(C).
    19. Tugcu, Can Tansel & Tiwari, Aviral Kumar, 2016. "Does renewable and/or non-renewable energy consumption matter for total factor productivity (TFP) growth? Evidence from the BRICS," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 610-616.
    20. Can Tansel TUGCU, 2013. "Disaggregate Energy Consumption and Total Factor Productivity: A Cointegration and Causality Analysis for the Turkish Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 3(3), pages 307-314.

    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:gam:jeners:v:14:y:2021:i:11:p:3165-:d:564611. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.