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The Effects of Renewable and Non-renewable Energy Consumption and Economic Growth on CO2 Emissions: Empirical Evidence from Developing Countries

Posted on Saturday October 16th, 2021Sunday October 17th, 2021 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effects of Renewable and Non-renewable Energy Consumption and Economic Growth on CO2 Emissions: Empirical Evidence from Developing Countries
Author(s):	Salih Turedi, Necati Turedi
Volume:	12
Number:	4
Year:	2021
Page:	751-765
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.350

Abstract

This study examines the effects of renewable and non-renewable energy consumption and economic growth on CO2 emissions for 53 developing countries during the period 1990-2014. For this purpose, the study employs a two-step difference Generalized Method of Moments (GMM) approach. Empirical results show that there is an inverted U-shaped relationship between economic growth and CO2 emissions, which shows the validity of the environmental Kuznets curve (EKC) hypothesis. The effect of renewable energy consumption (REC) on CO2 emissions was found to be negative and significant, while the effect of non-renewable energy consumption (NREC) was positive and significant. Moreover, both renewable and non-renewable energy consumption positively affect economic growth. Thus, for developing countries aiming to reduce CO2 emissions and the consequent environmental pollution, it is necessary to reduce the share of NREC in total energy consumption and to increase the share of REC. Furthermore, because NREC positively affects economic growth, the efficiency of non-renewable energy resources should be increased in order not to damage the economic growth process while decreasing the use.

Keywords:

Renewable Energy Consumption, Non-renewable Energy Consumption, Economic Growth, CO2 Emissions, Developing Countries

JEL Classification:

O44, Q40, Q53

Full Text ( ↓ 4901)

The Marshall-Lerner Condition in the Fragile Five Economies: Evidence from the ARDL Bounds Test Approach

Posted on Saturday October 16th, 2021Sunday October 17th, 2021 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Marshall-Lerner Condition in the Fragile Five Economies: Evidence from the ARDL Bounds Test Approach
Author(s):	Ayrton J. C. Amaral, Marthinus C. Breitenbach
Volume:	12
Number:	4
Year:	2021
Page:	731-750
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.349

Abstract

This paper evaluates the Marshall-Lerner condition in the fragile five economies of Brazil, India, Indonesia, South Africa, and Turkey and, in the process, offers an indication of whether the evaluation of this condition is subject to the limitations that have previously been identified in the literature. This research is novel as it studies a set of countries known as the fragile five, often overlooked in the literature. The ARDL Bounds methodology is used to estimate separate export and import demand equations. Results of the study show little evidence supporting the validity of the Marshall-Lerner condition in these five countries. All the models, except for those relating to Turkey, show signs of underlying issues such as model misspecification. The results imply that future empirical work on the Marshall-Lerner condition, particularly work centred on the fragile five, would likely need to address these underlying empirical issues in order to produce more consistent results.

Keywords:

Marshall-Lerner Condition, Fragile Five, ARDL Bounds Test, Trade Elasticities, Emerging Markets

JEL Classification:

F32, C22, C50

Full Text ( ↓ 6035)