Economic growth, CO2 emissions, and fossil fuels consumption in Iran

Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran
Energy (Impact Factor: 4.84). 12/2010; 35(12):5115-5120. DOI: 10.1016/


Environmental issues have attracted renewed interest and more attention during recent years due to climatic problems associated with the increased levels of pollution and the deterioration of the environmental quality as a result of increased human activity. This paper investigates the causal relationships between economic growth, carbon emission, and fossil fuels consumption, using the relatively new time series technique known as the Toda-Yamamoto method for Iran during the period 1967–2007. Total fossil fuels, petroleum products, and natural gas consumption are used as three proxies for energy consumption. Empirical results suggest a unidirectional Granger causality running from GDP and two proxies of energy consumption (petroleum products and natural gas consumption) to carbon emissions, and no Granger causality running from total fossil fuels consumption to carbon emissions in the long run. The results also show that carbon emissions, petroleum products, and total fossil fuels consumption do not lead to economic growth, though gas consumption does.

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Available from: Maliheh Ashena, Mar 02, 2014
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    • "Feedback hypothesis occurs, if there is a bidirectional causality between EC and economic growth [2], [14], [4], [5]. Conservation hypothesis arises only when there is one-way causality running from economic growth to energy consumption [6], [7], [8]. Growth hypothesis exists only if EC causes economic growth [9], [10], [11], [12]. "
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    ABSTRACT: The main objective of this study is to investigate the short-run and long-run estimates and causal relationship between energy consumption, trade and economic growth for Belgium in three different multivariate models in which economic growth, energy consumption and trade are dependent variables, respectively. This study confirms the existence of long-run relationship between the analyzed variables in the three models. In addition, the short-run and long-run elasticities are statistically significant in all the proposed models. Furthermore, the Granger causality test shows the evidence of feedback hypothesis between economic growth and energy consumption, between economic growth and trade, and between energy consumption and trade both in the short-run and long-run. Thus, Belgium should promote energy consumption and trade through appropriate policies to obtain sustainable long-run economic growth.
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    • "However, there was no causal relationship running from fossil fuels consumption to CO 2 emission. Moreover, there no was evidence that CO 2 emission, petroleum products, fossil fuel consumption led to economic growth (Lotfalipour et al., 2010). In South Africa, Menyah and Rufael (2010) found a positive effect of CO 2 emissions on energy consumption. "
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    • "However, there may be several factors which if not taken into account may lead to policy failures. Perhaps the most straightforward and effective solution of managing the CO 2 emissions is to reduce energy consumption, but this reduction may come at the price of economic growth because energy was considered as a complementary production factor alongside with other primary production factors such as physical capital and labor (Lotfalipour et al., 2010). Therefore, it is important to possess a better understanding on the inter-temporal linkages among economic growth, energy consumption and CO 2 emissions before the implementation of energy-related policies. "
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