Climate and Environment

The Causality between Energy Consumption, Urban Population, Carbon Dioxide Emissions and Economic Growth.

Abstract:

This article assesses the relationship between electricity consumption and urbanisation by comparing the econometric results of distributed autoregressive lag (ARDL) and vector autoregressive lag (VAR) for the period 1960-2015. Granger causality is also applied to the Portuguese economy. In this study, we use some hypotheses that describe the link between electricity consumption, urban population, carbon dioxide emissions, and economic growth. The motivation of this research focuses on the relationship between electricity consumption (energy consumption) and urban population, supported by the theoretical and empirical contributions of energy and urban economics. The empirical results show that electricity consumption exhibits causality with economic growth, urban population, carbon dioxide emissions, and international trade. This research also proves that there is cointegration among all variables in the long run. Authored by Nuno Carlos Leitão e Daniel Balslobre-Lorente, this chapter (nº5) is part of the book “Econometrics of Green Energy Handbook”, which shares essential insights into the dynamic between energy innovations, environmental guidelines, and economic development, demonstrates how globalization has led to the development of greener energy technologies, paints a global picture using case studies on energy innovation in numerous countries and discusses both technological and policy aspects of green energy development.

Quotation:

Leitão, N.C. & Lorente, D. B. (2020): The Causality between Energy Consumption, Urban Population, Carbon Dioxide Emissions and Economic Growth. Springer Handbook Green Energy Series: Econometry of Green Energy- Economy and Technological and Development. Publisher: Springer.