China’s Energy Economy: A Survey of the Literature

This paper reviews literature on China’s energy economics, focusing especially on: i) the relationship between energy consumption and economic growth, ii) China’s changing energy intensity, iii) energy demand and energy -capital and -labor substitution, iv) the emergence of energy markets in China, vi) and policy reforms in the energy industry. After reviewing the literature, the study presents the main findings and suggests some topics for further study.China; Energy; Literature

Rapid Economic Growth at the Cost of Environment Degradation? Panel Data Evidience from BRIC Economies

The paper investigates whether the decline in environmental quality in BRIC economies is due to high energy consumption level which is a resultant of rapid economic growth. We answer this using environmental, macroeconomic and financial variables along with Kyoto Protocol indicators based on panel data from 1992 to 2004.http://deepblue.lib.umich.edu/bitstream/2027.42/64409/1/wp908.pd

The causality between energy consumption and economic growth: A multi-sectoral analysis using non-stationary cointegrated panel data

The increasing attention given to global energy issues and the international policies needed to reduce greenhouse gas emissions have given a renewed stimulus to research interest in the linkages between the energy sector and economic performance at country level. In this paper, we analyse the causal relationship between economy and energy by adopting a Vector Error Correction Model for non-stationary and cointegrated panel data with a large sample of developed and developing countries and four distinct energy sectors. The results show that alternative country samples hardly affect the causality relations, particularly in a multivariate multi-sector frameworkEnergy Sector, Panel Unit Roots, Panel Cointegration, Vector Error Correction Models, Granger Causality

Energy and Economic Growth

Physical theory shows that energy is necessary for economic production and therefore growth but the mainstream theory of economic growth, except for specialized resource economics models, pays no attention to the role of energy. This paper reviews the relevant biophysical theory, mainstream and resource economics models of growth, the critiques of mainstream models, and the various mechanisms that can weaken the links between energy and growth. Finally we review the empirical literature that finds that energy used per unit of economic output has declined, but that this is to a large extent due to a shift from poorer quality fuels such as coal to the use of higher quality fuels, and especially electricity. Furthermore, time series analysis shows that energy and GDP cointegrate and energy use Granger causes GDP when additional variables such as energy prices or other production inputs are included. As a result, prospects for further large reductions in energy intensity seem limited.

The Environmental Consequences of Globalization: A Country-Specific Time Series Analysis

The dynamic relationships among trade, income and the environment for developed and developing countries are examined using a cointegration analysis. Results suggest that trade and income growth tend to increase environmental quality in developed countries, whereas they have detrimental effects on environmental quality in most developing countries. It is also found that for developed countries, the causal relationship appears to run from trade and income to the environment ─ a change in trade and income growth causes a consequent change in environmental quality, and the opposite relationship holds for developing countries.Developed countries, Developing countries, Environmental quality, Globalization, Time-series analysis, Trade,

The Environmental Consequences of Globalization: A Country-Specific Time-Series Analysis

The dynamic relationships among trade, income and the environment for developed and developing countries are examined using a cointegration analysis. Results suggest that trade and income growth tend to increase environmental quality in developed countries, whereas they have detrimental effects on environmental quality in most developing countries. It is also found that for developed countries the causal relationship appears to run from trade and income to the environment - a change in trade and income growth causes a consequent change in environmental quality, and the opposite relationship holds for developing countries.Developed countries, Developing countries, Environmental quality, Globalization, Time-series analysis, Trade, Environmental Economics and Policy, International Relations/Trade,

RAPID ECONOMIC GROWTH AT THE COST OF ENVIRONMENT DEGRADATION? – PANEL DATA EVIDIENCE FROM BRIC ECONOMIES

The paper investigates whether the decline in environmental quality in BRIC economies is due to high energy consumption level which is a resultant of rapid economic growth. We answer this using environmental, macroeconomic and financial variables along with Kyoto Protocol indicators based on panel data from 1992 to 2004.CO2 Emissions, Energy Consumption, Economic Growth, BRIC economies.

Energy consumption in the US reconsidered. Evidence across sources and economic sectors

This study analyzes the impact of GDP shocks in USA on primary energy consumption and the reverse impact in a comprehensive and novel framework, distinguishing by economic sectors (commercial, industrial, residential and transportation) and energy source, i.e., total fossil (coal, natural gas and petroleum), nuclear, and renewable (hydroelectric, geothermal and biomass) for the period 1973:1 to 2015:2. To this end, we apply Granger causality analysis through the Hatemi-J [1] and Toda and Yamamoto [2] approaches from a time series perspective to evaluate the existence of asymmetries on this bidirectional relationship. The empirical results suggest that the impact of GDP on primary energy consumption is heterogeneous and energy source-specific, and an asymmetric behavior appears among cycles. Moreover, it seems clear that the US economy is highly dependent on petroleum energy consumption. The renewable energy sources do not seem to show any relationshipsources seem to show no relationship with economic growth, and finally, our results suggest that energy consumption in the industrial sector is key to economic growth and is also very sensitive to negative economic shocks

Internal Validity of Estimating the Carbon Kuznets Curve by Controlling for Energy Use

The carbon Kuznetz curve (CKC) hypothesis assumes that carbon dioxide emissions initially increase in tandem with output but start decreasing at higher levels of output. This paper considers the internal validity of estimating the CKC in an integrated framework of carbon dioxide emissions, energy consumption, and output, as done in recent literature. We argue that, first, the research question and the feasible conclusions differ from the standard CKC-framework. Second, the estimates are biased to overstate thecompatibility of development and environmental policy goals. In a more realistic model carbon dioxide emissions rise quicker, peak later, and decrease slower as output increases.Energy consumption, carbon dioxide emissions, environmental Kuznets curve