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The role of trade openness ands investment i examining the energy-growth-pollution nexus: Empirical evidence for China and India.
IPAG Business School, Paris, France.
Universite Grenoble Alpes, France .
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences.ORCID iD: 0000-0002-8145-1000
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences.
2017 (English)In: Applied Economics, ISSN 0003-6846, E-ISSN 1466-4283, Vol. 49, no 40, 4083-4098 p.Article in journal (Refereed) Published
Abstract [en]

Most of the existing literature dealing with the relationship between carbon emissions, energy consumption and economic growth either suffers from ignoring relevant variables such as trade openness or investment, or suffers from using econometric methods that are unable to distinguish between short and long-term causality and are not robust to the degree of integration of time series used for the analysis. This paper suggests using the autoregressive distributed lag (ARDL) approach along with additional explanatory variables such as measures of trade and investment to shed a new light on the link between emissions, energy consumption and income in the two largest and energy-intensive developing economies: China and India. Our results, over the 1971-2009 period, provide evidence that investment plays a major role in shaping the relationship between carbon emissions, energy consumption and income in China while this is not the case in India. Furthermore, trade openness is found to play a key function in the short-term in China but does not contribute to the emissions-energy-growth scenario in India.

Place, publisher, year, edition, pages
Taylor & Francis, 2017. Vol. 49, no 40, 4083-4098 p.
Keyword [en]
Energy, Carbon emissions, Income, Chine-India, ARDL
National Category
Economics
Identifiers
URN: urn:nbn:se:liu:diva-133343DOI: 10.1080/00036846.2016.1276268ISI: 000402837000007OAI: oai:DiVA.org:liu-133343DiVA: diva2:1058748
Note

Funding agencies: Jan Wallanders and the Tom Hedelius Foundation

Available from: 2016-12-21 Created: 2016-12-21 Last updated: 2017-06-26

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CiteExportLink to record
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Citation style
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