https://isiarticles.com/bundles/Article/pre/pdf/42956.pdf

Non-renewable and renewable energy consumption and CO2 emissions in OECD countries: A comparative analysis

Urbanization and industrialization have significant impacts on energy consumption and CO2 emissions, but their relationship varies at different stages of economic development. Taking cognizance of heterogeneity and the “ratchet effect,” this paper adopts the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) framework as a starting point and re-estimates the relationship using different panel date models. The main results are obtained by dynamic panel threshold regression models, which divide a balanced panel dataset of 73 countries over the period of 1971–2010 into four groups according to their annual income levels. The key results are: (1) in the low-income group, urbanization decreases energy consumption but increases CO2 emissions; (2) in the middle-/low-income and high-income groups, industrialization decreases energy consumption but increases CO2 emissions, while urbanization significantly increases both energy consumption and CO2 emissions; (3) for the middle-/high-income group, urbanization does not significantly affect energy consumption, but does hinder the growth of emissions; while industrialization was found to have an insignificant impact on energy consumption and CO2 emissions; (4) from the population perspective, it produces positive effects on energy consumption, and also increases emissions except for the high-income group. These novel methodology and findings reveal that different development strategies of urbanization and industrialization should be pursued depending on the levels of income in a bid to conserve energy and reduce emissions.

Impacts of urbanization and industrialization on energy consumption/CO2 emissions: Does the level of development matter?

The effect of energy consumption, urbanization, trade openness, industrial output, and the political stability on the environmental degradation in the MENA (Middle East and North African) region

This study investigates the influence of disaggregated renewable electricity production by source on CO2 emission in 23 selected European countries for the period of 1990–2013. Panel data techniques were used in examining the relationships. The Pedroni cointegration results indicated that CO2 emission, GDP growth, urbanization, financial development, and renewable electricity production by source were cointegrated. Moreover, the fully modified ordinary least-square results revealed that GDP growth, urbanization, and financial development increase CO2 emission in the long run, while trade openness reduces it. Furthermore, renewable electricity generated from combustible renewables and waste, hydroelectricity, and nuclear power have a negative long-run effect on CO2 emission, while renewable electricity generated from solar power and wind power is insignificant. The VECM Granger causality also revealed that GDP growth is the only variable that has causal effects on CO2 emission in all the investigated models, while the rest of the variables have causal effects on CO2 emission in only a few models. A number of policy recommendations were provided for the European countries.

The influence of economic growth, urbanization, trade openness, financial development, and renewable energy on pollution in Europe

We investigate the impact of urbanization on CO2 emissions by applying the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) in the case of Malaysia over the period of 1970Q1–2011Q4. Empirically, after testing the integrating properties of the variables using the unit root test, we applied the Bayer–Hanck combined cointegration approach to examine the cointegration relationship between the variables. Further, we tested the robustness of the long-run relationship in the presence of structural breaks using ARDL bounds testing approach. The causal relationship between the variables is investigated by applying the VECM Granger causality test. Our results validate the existence of cointegration in the presence of structural breaks. The empirical results exposed that economic growth is a major contributor to CO2 emissions. Besides, energy consumption raises emissions intensity and capital stock boosts energy consumption. Trade openness leads affluence and hence increases CO2 emissions. More importantly, we find that the relationship between urbanization and CO2 emissions is U-shaped i.e. urbanization initially reduces CO2 emissions, but after a threshold level, it increases CO2 emissions. The causality analysis suggests that the urbanization Granger causes CO2 emissions.

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Yan Lin

Papers

Panel estimation for urbanization, energy consumption and CO2 emissions: A regional analysis in China