### 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 language | English |
---|---|

Pages (from-to) | 2645-2656 |

Number of pages | 12 |

Journal | Applied Mathematical Sciences |

Volume | 9 |

Issue number | 53-56 |

DOIs | |

Publication status | Published - 2015 |

### Fingerprint

### Keywords

- Economic growth
- GHG
- Panel data analysis

### ASJC Scopus subject areas

- Applied Mathematics

### Cite this

*Applied Mathematical Sciences*,

*9*(53-56), 2645-2656. https://doi.org/10.12988/ams.2015.5129

**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.

Research output: Contribution to journal › Article

*Applied Mathematical Sciences*, vol. 9, no. 53-56, pp. 2645-2656. https://doi.org/10.12988/ams.2015.5129

}

TY - JOUR

T1 - Detect the relationship among energy consumption, economic growth and greenhouse gases by panel data approach

AU - Isa, Zaidi

AU - Al Sayed, Ahmed R M

AU - Kun, Sek Sok

PY - 2015

Y1 - 2015

N2 - 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.

AB - 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.

KW - Economic growth

KW - GHG

KW - Panel data analysis

UR - http://www.scopus.com/inward/record.url?scp=84929892663&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84929892663&partnerID=8YFLogxK

U2 - 10.12988/ams.2015.5129

DO - 10.12988/ams.2015.5129

M3 - Article

VL - 9

SP - 2645

EP - 2656

JO - Applied Mathematical Sciences

JF - Applied Mathematical Sciences

SN - 1312-885X

IS - 53-56

ER -