Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality Analysis
Policy makers need to know the relationship among energy use, economic growth and environmental quality in order to formulate rigorous policy for economic growth and environmental sustainability. This study analyzes the nexus among energy consumption, affluence, financial development, trade openness...
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| Format: | Article |
| Language: | English |
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Turkish Science and Technology Publishing (TURSTEP)
2018-06-01
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| Series: | Turkish Journal of Agriculture: Food Science and Technology |
| Subjects: | |
| Online Access: | http://www.agrifoodscience.com/index.php/TURJAF/article/view/1720 |
| _version_ | 1797917124385046528 |
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| author | Shemelis Kebede Hundie |
| author_facet | Shemelis Kebede Hundie |
| author_sort | Shemelis Kebede Hundie |
| collection | DOAJ |
| description | Policy makers need to know the relationship among energy use, economic growth and environmental quality in order to formulate rigorous policy for economic growth and environmental sustainability. This study analyzes the nexus among energy consumption, affluence, financial development, trade openness, urbanization, population and CO2 emissions in Ethiopia using data from 1970–2014. The ARDL cointegration results show that cointegration exists among the variables. Energy consumption, population, trade openness and economic growth have positive impact on CO2 in the long-run while economic growth squared reduces CO2 emissions which confirms that the EKC hypothesis holds in Ethiopia. In the short-run urbanization and energy consumption intensify environmental degradation. Toda-Yamamoto granger causality results indicate the bi-directional causality between energy consumption and CO2 emissions, CO2 emissions and urbanization. Financial development, population and urbanization cause economic growth while economic growth causes CO2 emissions. Causality runs from energy consumption to financial development, urbanization and population which in turn cause economic growth. From the result, CO2 emissions extenuation policy in Ethiopia should focus on environmentally friendly growth, enhancing consumption of cleaner energy, incorporating the impact of population, urbanization, trade and financial development. |
| first_indexed | 2024-04-10T13:08:15Z |
| format | Article |
| id | doaj.art-75dcc4648e9f4ca9b5a7429bb572157e |
| institution | Directory Open Access Journal |
| issn | 2148-127X |
| language | English |
| last_indexed | 2024-04-10T13:08:15Z |
| publishDate | 2018-06-01 |
| publisher | Turkish Science and Technology Publishing (TURSTEP) |
| record_format | Article |
| series | Turkish Journal of Agriculture: Food Science and Technology |
| spelling | doaj.art-75dcc4648e9f4ca9b5a7429bb572157e2023-02-15T16:12:50ZengTurkish Science and Technology Publishing (TURSTEP)Turkish Journal of Agriculture: Food Science and Technology2148-127X2018-06-016669970910.24925/turjaf.v6i6.699-709.1720866Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality AnalysisShemelis Kebede Hundie0Department of Economics, Jigjiga UniversityPolicy makers need to know the relationship among energy use, economic growth and environmental quality in order to formulate rigorous policy for economic growth and environmental sustainability. This study analyzes the nexus among energy consumption, affluence, financial development, trade openness, urbanization, population and CO2 emissions in Ethiopia using data from 1970–2014. The ARDL cointegration results show that cointegration exists among the variables. Energy consumption, population, trade openness and economic growth have positive impact on CO2 in the long-run while economic growth squared reduces CO2 emissions which confirms that the EKC hypothesis holds in Ethiopia. In the short-run urbanization and energy consumption intensify environmental degradation. Toda-Yamamoto granger causality results indicate the bi-directional causality between energy consumption and CO2 emissions, CO2 emissions and urbanization. Financial development, population and urbanization cause economic growth while economic growth causes CO2 emissions. Causality runs from energy consumption to financial development, urbanization and population which in turn cause economic growth. From the result, CO2 emissions extenuation policy in Ethiopia should focus on environmentally friendly growth, enhancing consumption of cleaner energy, incorporating the impact of population, urbanization, trade and financial development.http://www.agrifoodscience.com/index.php/TURJAF/article/view/1720GrowthEnergyFinancial developmentUrbanizationCO2 emissionsEthiopia |
| spellingShingle | Shemelis Kebede Hundie Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality Analysis Turkish Journal of Agriculture: Food Science and Technology Growth Energy Financial development Urbanization CO2 emissions Ethiopia |
| title | Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality Analysis |
| title_full | Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality Analysis |
| title_fullStr | Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality Analysis |
| title_full_unstemmed | Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality Analysis |
| title_short | Modelling Energy Consumption, Carbon Dioxide Emissions and Economic Growth Nexus in Ethiopia: Evidence from Cointegration and Causality Analysis |
| title_sort | modelling energy consumption carbon dioxide emissions and economic growth nexus in ethiopia evidence from cointegration and causality analysis |
| topic | Growth Energy Financial development Urbanization CO2 emissions Ethiopia |
| url | http://www.agrifoodscience.com/index.php/TURJAF/article/view/1720 |
| work_keys_str_mv | AT shemeliskebedehundie modellingenergyconsumptioncarbondioxideemissionsandeconomicgrowthnexusinethiopiaevidencefromcointegrationandcausalityanalysis |