Sustainability 2014, 6(2), 1037-1045; doi:10.3390/su6021037
Communication

Understanding the Causality between Carbon Dioxide Emission, Fossil Energy Consumption and Economic Growth in Developed Countries: An Empirical Study

1,* email, 1,†email, 2,†email, 1,†email and 1,†email
Received: 30 January 2014; in revised form: 12 February 2014 / Accepted: 13 February 2014 / Published: 21 February 2014
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.
Abstract: Issues on climate change have been recognized as serious challenges for regional sustainable development both at a global and local level. Given the background that most of the artificial carbon emissions are resulted from the energy consumption sector and the energy is also the key element resource for economic development, this paper investigated the relationship between CO2 emission, fossil energy consumption, and economic growth in the period 1970–2008 of nine European countries, based on the approach of Granger Causality Test, followed by the risk analysis on impacts of CO2 reduction to local economic growth classified by the indicator of causality degree. The results show that there are various feedback causal relationships between carbon emission, energy consumption and economic growth, with both unidirectional and dual-directional Granger causality. The impact of reducing CO2 emission to economic growth varies between countries as well.
Keywords: climate change; carbon reduction; regional disparity; causality test; European countries
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MDPI and ACS Style

Xue, B.; Geng, Y.; Müller, K.; Lu, C.; Ren, W. Understanding the Causality between Carbon Dioxide Emission, Fossil Energy Consumption and Economic Growth in Developed Countries: An Empirical Study. Sustainability 2014, 6, 1037-1045.

AMA Style

Xue B, Geng Y, Müller K, Lu C, Ren W. Understanding the Causality between Carbon Dioxide Emission, Fossil Energy Consumption and Economic Growth in Developed Countries: An Empirical Study. Sustainability. 2014; 6(2):1037-1045.

Chicago/Turabian Style

Xue, Bing; Geng, Yong; Müller, Katrin; Lu, Chengpeng; Ren, Wanxia. 2014. "Understanding the Causality between Carbon Dioxide Emission, Fossil Energy Consumption and Economic Growth in Developed Countries: An Empirical Study." Sustainability 6, no. 2: 1037-1045.

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