Detect the relationship among energy consumption, economic growth and greenhouse gases by panel data approach

Zaidi Isa, Ahmed R M Al Sayed, Sek Sok Kun

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Recently, many scholars have shown their interest into the relationship among energy consumption (EC), economic growth (GDP) and pollutants emissions. The objective of this paper is to detect the relationship between EC, GDP and greenhouse gases emissions (GHG) in group of European countries; Austria, Sweden, Norway, France and Finland for data spanning from 1960 to 2011 by employing panel data approach. The important results of this empirical study show a strong relationship among the variables at 5% significance level. Moreover cross section effects model represents the data better than the period effects specification as R2 and R2 adjusted are much higher in cross section than that in period effects, and all estimated coefficients are significant in cross section estimator. In cross section effects GHG can be explained more than 86% by the explanatory variables; EC, GDP and GDP2, but in period effects can be explained only 21% by the explanatory variables. Moreover we can note that the coefficient of GDP in period effect model is (-13.11) which two times more than that in cross section effect model (-6.6). The EKC curve (inverted U shape) has been hold in both cases. However the value of turning point in period effects model (80961.11 USD) almost five times higher than that in cross section effects model (16413.88 USD). Thus policy makers should consider the EC and GDP as effected factors towards the GHG.

Original languageEnglish
Pages (from-to)2645-2656
Number of pages12
JournalApplied Mathematical Sciences
Volume9
Issue number53-56
DOIs
Publication statusPublished - 2015

Fingerprint

Greenhouse Gases
Economic Growth
Panel Data
Greenhouse gases
Energy Consumption
Energy utilization
Economics
Gas emissions
Cross section
Relationships
Specifications
Model
Sweden
Significance level
Turning Point
Coefficient
Pollutants
Empirical Study
Specification
Estimator

Keywords

  • Economic growth
  • GHG
  • Panel data analysis

ASJC Scopus subject areas

  • Applied Mathematics

Cite this

Detect the relationship among energy consumption, economic growth and greenhouse gases by panel data approach. / Isa, Zaidi; Al Sayed, Ahmed R M; Kun, Sek Sok.

In: Applied Mathematical Sciences, Vol. 9, No. 53-56, 2015, p. 2645-2656.

Research output: Contribution to journalArticle

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