Energy consumption, economic policy uncertainty and carbon emissions; causality evidence from resource rich economies

Authors: Adams, S., Adedoyin, F., Olaniran, E. and Bekun, F.V.

Journal: Economic Analysis and Policy

Volume: 68

Pages: 179-190

ISSN: 0313-5926

DOI: 10.1016/j.eap.2020.09.012

Abstract:

The study uses the World Uncertainty Index to analyze the long-run relationship of economic policy uncertainty and energy consumption for countries with high geopolitical risk over the period 1996–2017. The Kao test shows a cointegration association between energy consumption, economic growth, geopolitical risk, economic policy uncertainty, and carbon dioxide (CO2) emissions. The results based on the Panel Pooled Mean Group-Autoregressive Distributed lag model (PMG-ARDL) show that energy consumption and economic growth contribute to (CO2) emissions. Additionally, there is a significant association between economic uncertainty and CO2 emissions in the long-run. The panel causality analysis by Dumitrescu and Hurlin (2012) shows a bidirectional relationship between CO2 emissions and energy consumption, economic policy uncertainty and CO2 emissions, economic growth and CO2 emissions, but a unidirectional causality from CO2 emissions to geopolitical risks. The findings call for vital changes in energy policies to accommodate economic policy uncertainties and geopolitical risks.

https://eprints.bournemouth.ac.uk/34589/

Source: Scopus

Energy consumption, economic policy uncertainty and carbon emissions; causality evidence from resource rich economies

Authors: Adams, S., Adedoyin, F., Olaniran, E. and Bekun, F.V.

Journal: ECONOMIC ANALYSIS AND POLICY

Volume: 68

Pages: 179-190

ISSN: 0313-5926

DOI: 10.1016/j.eap.2020.09.012

https://eprints.bournemouth.ac.uk/34589/

Source: Web of Science (Lite)

Energy consumption, economic policy uncertainty and carbon emissions; causality evidence from resource rich economies

Authors: Adams, S., Adedoyin, F., Olaniran, E. and Bekun, F.V.

Journal: Economic Analysis and Policy

Volume: 68

Pages: 179-190

DOI: 10.1016/j.eap.2020.09.012

https://eprints.bournemouth.ac.uk/34589/

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85091634274&doi=10.1016%2fj.eap.2020.09.012&partnerID=40&md5=b5b4e5cd7ffe17a7bb773faa4bc92eaf

Source: Manual

Energy consumption, economic policy uncertainty and carbon emissions; causality evidence from resource rich economies.

Authors: Adedoyin, F.F., Adams, S., Olaniran, E. and Bekun, F.V.

Journal: Economic Analysis and Policy

Volume: 68

Issue: December

Pages: 179-190

ISSN: 0313-5926

Abstract:

The study uses the new World Uncertainty Index to analyze the causality and long-run effects of economic policy uncertainty and energy consumption in a carbon function for countries with high geopolitical risk over the period 1996 - 2017. The Kao test shows a cointegration association between energy consumption, economic growth, geopolitical risk, economic policy uncertainty, and carbon dioxide emissions (CO2). The results based on the Panel Pooled Mean Group-Autoregressive Auto regressive distributed lag model (PMG-ARDL) show that energy consumption and economic growth trigger carbon emissions. Additionally, there is a significant association between economic uncertainties and CO2 emissions in the long-run, while this relationship is negative for geopolitical risks. This implies that higher levels of economic policy uncertainties adversely affect environmental sustainability for countries with higher levels of geopolitical risks. The panel causality analysis by Dumitrescu and Hurlin (2012) identifies a bidirectional relationship between CO2 emissions and energy consumption, economic policy uncertainty and CO2 emissions, economic growth and CO2 emissions, but a unidirectional causality from CO2 emissions to geopolitical risks. Our findings call for the need for vital changes in energy policies to accommodate economic policy uncertainties and geopolitical risks.

https://eprints.bournemouth.ac.uk/34589/

Source: BURO EPrints