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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    • "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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    • "The further applied modified Granger causality test which show unidirectional causality running from pollutant emission to economic growth; from energy consumption to growth and from energy consumption to CO 2 emissions. Lotfalipour et al. (2010) investigated the causal relation between economic growth, carbon emissions and fossil fuels using Toda–Yamamoto causality test method in the case of Iran over the period of 1967–2007. They reported that unidirectional Granger causality runs from GDP and energy consumption to carbon emissions. "
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    ABSTRACT: This paper investigated the relationship between energy consumption, carbon dioxide (CO2) emissions and GDP in Nigeria using autoregressive distributed lag approach to cointegration. The empirical results revealed that there is a long run relationship energy consumption, CO2 emissions and GDP. Both in the long run and short run, CO2 emissions has been found to have a significant positive impact on GDP, meaning that an increase in CO2 emissions facilitates GDP growth. On the other hand, energy consumption shows significant negative impact on GDP in the short run. We therefore, suggested that renewable source of energy such as solar and wind could be explored and considered as an alternative source of energy since Nigeria is well endowed with solar energy. This will assist in reducing CO2 emissions and at the same time sustaining long run growth in GDP.
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