Next Article in Journal
Main Factors Affecting Post-Harvest Grain Loss during the Sales Process: A Survey in Nine Provinces of China
Previous Article in Journal
A Preference Model for Supplier Selection Based on Hesitant Fuzzy Sets
Article Menu
Issue 3 (March) cover image

Export Article

Open AccessArticle
Sustainability 2018, 10(3), 660; https://doi.org/10.3390/su10030660

Coal Consumption and Economic Growth: Panel Cointegration and Causality Evidence from OECD and Non-OECD Countries

Department of Earth Resources and Environmental Engineering, Hanyang University, 222 Wangsimni-ro, Seongdong-gu, Seoul 04763, Korea
*
Author to whom correspondence should be addressed.
Received: 10 January 2018 / Revised: 23 February 2018 / Accepted: 27 February 2018 / Published: 1 March 2018
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
Full-Text   |   PDF [277 KB, uploaded 1 March 2018]

Abstract

This paper examines the relationship between coal consumption and economic growth for 30 OECD (Organisation for Economic Co-operation and Development) countries and 32 non-OECD countries for 1990–2013 using a multivariate dependent panel analysis. For the analysis, we conducted the common factor defactorization process, unit root test, cointegration test, long-run cointegrating vector, and Granger causality test. Our results suggest the following: First, there is no long-run relationship between coal consumption and economic growth in OECD countries; however, in non-OECD countries, the relationship does exist. Second, excessive coal usage may hinder economic growth in the long run. Lastly, the growth hypothesis (coal consumption affects economic growth positively) is supported in the short run for non-OECD countries. As coal consumption has a positive effect on economic growth in the short run and a negative effect in the long run, energy conservation policies may have adverse effects only in the short run. Thus, non-OECD countries should gradually switch their energy mix to become less coal-dependent as they consider climate change. Moreover, a transfer of technology and financial resources from developed to developing countries must be encouraged at a global level. View Full-Text
Keywords: coal consumption; economic growth; nexus; panel analysis; dependent panel coal consumption; economic growth; nexus; panel analysis; dependent panel
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Jin, T.; Kim, J. Coal Consumption and Economic Growth: Panel Cointegration and Causality Evidence from OECD and Non-OECD Countries. Sustainability 2018, 10, 660.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top