Saboori, Behnaz and Soleymani, Abdorreza (2011): Environmental Kuznets curve in Indonesia, the role of energy consumption and foreign trade.
Download (210kB) | Preview
This study examines the dynamic relationship among carbon dioxide (CO2) emissions, economic growth, energy consumption and foreign trade based on the environmental Kuznets curve (EKC) hypothesis for Indonesia during the period 1971–2007. The Auto regressive distributed lag (ARDL) methodology is used as an estimation technique. The results do not support the EKC hypothesis, which assumes an inverted U-shaped relationship between income and environmental degradation. The long-run results indicate that foreign trade is the most significant variable in explaining CO2 emissions in Indonesia followed by Energy consumption and economic growth. The stability of the variables in estimated models is also examined. The result suggests that the estimated models are stable over the sample period.
|Item Type:||MPRA Paper|
|Original Title:||Environmental Kuznets curve in Indonesia, the role of energy consumption and foreign trade|
|Keywords:||Environmental Kuznets curve; CO2 emissions; energy consumption|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q51 - Valuation of Environmental Effects
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy
|Depositing User:||behnaz saboori|
|Date Deposited:||14. Jun 2011 13:38|
|Last Modified:||25. Apr 2015 21:00|
Akbostanci, E., Türüt-Asik, S., Tunc, I.G., 2009. The relationship between income and environment in Turkey: is there an environmental Kuznets curve? Energy Policy 37 (2), 861-867.
Akinlo, A.E., 2008. Energy consumption and economic growth: evidence from 11 Sub-Sahara African countries. Energy Economics 30 (5), 2391-2400.
Al-Iriani, M.A., 2006. Energy–GDP relationship revisited: an example from GCC countries using panel causality. Energy Policy 34 (17), 3342-3350.
Ang, J., 2007. CO2 emissions, energy consumption, and output in France. Energy Policy 35 (10), 4772-4778.
Ang, J., 2008. Economic development, pollutant emissions and energy consumption in Malaysia. Journal of Policy Modeling 30, 271-278.
Bahmani-Oskooee, M., Brooks, T. J., 1999. Bilateral J-curve between US and her trading partners, Weltwirtschaftliches Archiv 135, 156-165.
Bahmani-Oskooee, M., Kantipong, T., 2001. Bilateral J-Curve between Thailand and her trading partners. Journal of economic development 26 (2), 107-117.
Chandran, V.G.R., Sharma, S., Madhavan, K., 2009. Electricity consumption–growth nexus: the case of Malaysia. Energy Policy 38, 606-612.
Cheng, B.S., Lai, T.W., 1997. An investigation of co-integration and causality between energy consumption and economic activity in Taiwan. Energy Economics 19 (4), 435-444.
Dinda, S., 2004. Environmental Kuznets curve hypothesis: a survey. Ecological Economics 49, 431-455.
Dinda, S., Coondoo, D., 2006. Income and emission: a panel data-based cointegration analysis. Ecological Economics 57, 167-181.
Engle, R.F., Granger, C.W.J., 1987. Cointegration and error correction representation: estimation and testing. Econometrica 55, 251-276.
Fodha, M., Zaghdoud, O., 2010. Economic growth and pollutant emissions in Tunisia: an empirical analysis of the environmental Kuznets curve. Energy Policy 38, 1150-1156.
Ghosh, S., 2009. Electricity supply, employment and real GDP in India: evidence from cointegration and Granger-causality tests. Energy Policy 37 (8), 2926-2929.
Ghosh, S., 2010. Examining carbon emissions-economic growth nexus for India: a multivariate cointegration approach. Energy Policy 38, 2613-3130.
Grossman, G.M., Krueger, A.B., 1995. Economic growth and the environment. Quarterly Journal of Economics 110, 353-377.
Halicioglu, F., 2009. An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy 37 (3), 1156-1164.
Intergovernmental Panel on Climate Change (IPCC), 2007. Climate change Synthesis report 2007. <http://www.ipcc.ch/>.
Iwata, H., Okada, K., Samreth, S., 2010. Empirical study on environmental Kuznets curve for CO2 in France: the role of nuclear energy. Energy Policy 38, 4057-4063.
Jalil, A., Mahmud, S.F., 2009. Environment Kuznets curve for CO2 emissions: a cointegration analysis. Energy Policy 37, 5167-5172.
Johansen, S., Juselius, K., 1990. Maximum likelihood estimation and inference on cointegration with applications to the demand for money. Oxford Bulletin of Economics and Statistics 52, 169-210.
Kraft, J., Kraft, A., 1978. On the relationship between energy and GNP. Journal of Energy and Development 3, 401- 403.
Kremers, J.J., Ericson, N.R., Dolado, J.J, 1992. The Power of Cointegration Tests. Oxford Bulletin of Economics and Statistics 54, 325-347.
Lee, C.C., Lee, J.D., 2009. Income and CO2 emissions: evidence from panel unit root and cointegration tests. Energy Policy 37, 413-423.
Masih, A., Masih, R., 1996. Energy consumption and real income temporal causality, results for a multi-country study based on cointegration and error- correction techniques. Energy Economics 18, 165-183.
Masih, A.M.M., Masih, R., 1997. On temporal causal relationship between energy consumption, real income and prices; some new evidence from Asian energy dependent NICs based on a multivariate cointegration/vector error correction approach. Journal of Policy Modeling 19 (4), 417-440.
Mehrara, M., 2007. Energy consumption and economic growth: the case of oil exporting countries. Energy Policy 35 (5), 2939-2945.
Narayan, P.K., Narayan, S., Prasad, A., 2008. A structural VAR analysis of electricity consumption and real GDP: evidence from the G7 countries. Energy Policy 36, 2765-2769.
Narayan, P.K., Narayan, S., 2010. Carbon dioxide emissions and economic growth: Panel data evidence from developing countries. Energy Policy 38, 661-666.
Pesaran, M.H., Pesaran, B., 1997. Working With Microfit 4.0: Interactive Econometric Analysis. Oxford University Press, Oxford.
Pesaran, M.H., Shin, Y., 1999. An autoregressive distributed lag modeling approach to cointegration analysis. In: Strom, S. (Ed.), Econometrics and Economic Theory in 20th Century: The Ragnar Frisch Centennial Symposium. Cambridge University Press, Cambridge Chapter 11.
Pesaran, M.H., Shin, Y., Smith, R.J., 2001. Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics 16, 289-326.
Phillips, P., Hansen, B., 1990. Statistical inference in instrumental variables regression with I(1) process. Review of Economic Studies 57, 99-125.
Soytas, U., Sari, R., 2009. Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member. Ecological Economics 68 (6), 1667-1675.
Stern, D.I., 2004. The rise and fall of the environmental Kuznets curve. World Development 32, 1419–1438.
Tang, C.F., 2008. A re-examination of the relationship between electricity consumption and economic growth in Malaysia. Energy Policy 36 (8), 3077-3085.
The World Bank, 2007a. Growth and CO2 emissions: how do different countries fare. Environment Department, Washington, DC.
Wolde-Rufael, Y., 2006. Electricity consumption and economic growth: a time series experience for 17 African countries. Energy Policy 34, 1106-1114.
Yang, H.Y., 2000. A note on the causal relationship between energy and GDP in Taiwan. Energy Economics 22 (3), 309-317.
Yoo, S.H., Kwak, S.Y., 2010. Electricity consumption and economic growth in seven South American countries. Energy Policy 38, 181-188.
Zhang, X.P., Cheng, X.M., 2009. Energy consumption, carbon emissions, and economic growth in China. Ecological Economics 68, 2706-2712.