A new evidence on the CIS’s environmental pollution-macroeoconmic variables relationship

Author/s Ehsan Rasoulinezhad, Farhad Taghizadeh-Hesary
Publishing Year 2017 Issue 2017/1-2 Language English
Pages 21 P. 273-293 File size 390 KB
DOI 10.3280/EFE2017-001014
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This research explores the long-run and causal link between renewable and non-renewable (fossil fuels) energy consumption in the Commonwealth of Independent States (CIS) with CO2 emissions and Real GDP per capita, by using three control variables, namely industrialization, the composite trade intensity and financial openness. Using panel data pattern from 1992 to 2016 and employing the Pesaran’s CD test, the CADF panel unit root test, the FMOLS panel cointegration estimation method and panel causality test, the main empirical results provide evidence supporting that in the long-run, there is a uni-directional relationship running from economic growth to renewable energy consumption. Furthermore, in the short-run, there is a uni-directional short-run panel causality running from industrialization- renewable energy use, economic growth, industrialization, financial openness and trade openness to CO2 emissions, and from fossil fuel energy consumption to renewable energy use, while there is a bi-directional trade openness- financial openness, economic growth- renewable energy use, economic growth-non-renewable energy consumption, in-dustrialization- non-renewable energy use, economic growth-industrialization, and CO2 emissions- fossil fuel energy consumption causality relationship.

Keywords: Environmental pollution-macroeconomic variables linkage, panel cointegration estimation, the engle-granger causality test, the CIS

Jel codes: G20, F12

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Ehsan Rasoulinezhad, Farhad Taghizadeh-Hesary, A new evidence on the CIS’s environmental pollution-macroeoconmic variables relationship in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 1-2/2017, pp 273-293, DOI: 10.3280/EFE2017-001014