Another look at the relationship between energy consumption, carbon dioxide emissions, and economic growth in South Africa

Festus Victor Bekun, Fırat Emir, Samuel Asumadu Sarkodie

Research output: Contribution to journalArticleResearchpeer-review

Abstract

This study explores the energy use and economic growth nexus from 1960 to 2016 in South Africa while accounting for capital, labour, and carbon dioxide emissions. We applied Bayer and Hanck (2013) combined co-integration approach, Pesaran et al. (2001) bounds test and Kripfganz and Schneider (2018) critical values and approximate p-values. The empirical evidence finds support for a long-run equilibrium relationship among investigated variables. The Granger causality test indicates one-way causality from energy use to economic growth, validating the energy-led growth hypothesis. Our study found an inverted U-shaped pattern between energy use and economic growth in the long run. This finding suggests that at a higher level of economic development there is less intensification of energy consumption, hence, signifying a decline in energy intensity while validating energy efficiency in South Africa.
LanguageEnglish
Pages759-765
Number of pages7
JournalScience of the Total Environment
Volume655
DOIs
Publication statusPublished - 10 Mar 2019

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energy use
Carbon Dioxide
economic growth
Carbon dioxide
Energy utilization
carbon dioxide
Economics
Granger causality test
energy efficiency
energy
economic development
labor
Energy efficiency
Lead
Personnel
Africa
energy consumption
energy economics

Cite this

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title = "Another look at the relationship between energy consumption, carbon dioxide emissions, and economic growth in South Africa",
abstract = "This study explores the energy use and economic growth nexus from 1960 to 2016 in South Africa while accounting for capital, labour, and carbon dioxide emissions. We applied Bayer and Hanck (2013) combined co-integration approach, Pesaran et al. (2001) bounds test and Kripfganz and Schneider (2018) critical values and approximate p-values. The empirical evidence finds support for a long-run equilibrium relationship among investigated variables. The Granger causality test indicates one-way causality from energy use to economic growth, validating the energy-led growth hypothesis. Our study found an inverted U-shaped pattern between energy use and economic growth in the long run. This finding suggests that at a higher level of economic development there is less intensification of energy consumption, hence, signifying a decline in energy intensity while validating energy efficiency in South Africa.",
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Another look at the relationship between energy consumption, carbon dioxide emissions, and economic growth in South Africa. / Bekun, Festus Victor; Emir, Fırat; Sarkodie, Samuel Asumadu.

In: Science of the Total Environment, Vol. 655, 10.03.2019, p. 759-765.

Research output: Contribution to journalArticleResearchpeer-review

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