Oil Consumption, CO2 Emission, and Economic Growth: Evidence from the Philippines
Abstract
:1. Introduction
Countries | Periods | Causality Relationship | Sources |
---|---|---|---|
BRICs | 1971–2005 | Short run: C→Y, E→CY | Pao and Tsai [16] |
Long run: YC→E, CE→Y | |||
Strong: C→EY, E→CY, Y→E | |||
Central America (6) | 1971–2004 | short run: E→CY, Y→CE | Apergis and Payne [17] |
long run: EY→C, YC→E | |||
China | 1960–2007 | long run: Y→E, E→C | Zhang and Cheng [18] |
1981–2006 | long run: Y→CE, C→E, E→YC | Chang [19] | |
CIS | 1992–2004 | short run: E→CY, Y→CE | Apergis and Payne [20] |
long run: EY→C, CY→E | |||
Europe (19) | 1960–2005 | short run: (Denmark) Y→C,E | Acaravci and Ozturk [21] |
(Greece) Y→E (Italy) E→C, Y→CE | |||
(Swiss) E→Y, Y→E | |||
long run: (Denmark) EY→C | |||
(Greece) EY→C (Iceland) EY→C | |||
(Italy) EY→C, YC→E (Portugal) EY→C | |||
(Swiss) EY→C EC→Y | |||
Greece | 1977–2007 | short run: Y→C, E→C | Hatzigeorgiou et al. [22] |
long run: Y→EC, E→C, C→E | |||
strong: Y→EC, E→C | |||
Iran | 1967–2007 | long run: Y→CE | Lotfalipour et al. [23] |
Malaysia | 1971–1999 | short run: Y→E | Ang [24] |
long run: CE→Y, YC→E | |||
strong: CE→Y, Y→E | |||
France | 1960–2000 | short run: E→Y | Ang [25] |
long run: EY→C, CY→E | |||
South Africa | 1965–2006 | C→Y, E→YC | Menyah and Wolde-Rufael [26] |
Turkey | 1960–2005 | short run: C→EY, E→C, Y→C | Halicioglu [27] |
long run: EY→C, EC→Y | |||
1968–2005 | long run: CE→Y | Ozturk and Acaravci [28] |
2. Methodology
2.1. Granger-Causality and Stationarity
2.2. Co-Integration
2.3. Error-Correction Model
3. Results and Discussion
3.1. Data
3.2. Results of Unit Roots and Co-Integration Tests
Variables | Levels | First differences | ||
---|---|---|---|---|
PP values | p-values | PP values | p-values | |
Oil consumption (X) | −6.24 [4] | 0.727 | −21.88 [3]** | 0.048 |
CO2 emissions (Y) | −10.00 [10] | 0.436 | −41.33 [2]** | 0.001 |
GDP (Z) | −7.31 [8] | 0.639 | −44.19 [2]** | 0.000 |
Variables | Optimal lags | Break points | Test statistics | Inferences |
---|---|---|---|---|
Oil consumption (X) | 6 | 1984 | −2.77 | Non-stationary |
CO2 emissions (Y) | 10 | 1987 | −2.19 | Non-stationary |
GDP (Z) | 1 | 1985 | −1.58 | Non-stationary |
Null hypotheses | Likelihood ratio test statistic | p-values |
---|---|---|
The number of co-integrating equations is zero (R = 0) | 36.63 | 0.027 |
The number of co-integrating equations is at most one (R ≤ 1) | 14.43 | 0.158 |
The number of co-integrating equations is at most two (R ≤ 2) | 0.04 | 0.620 |
3.3. Results of the Error-Correction Model and Granger-Causality Tests
Null Hypotheses | Source of Causality (Independent Variables) | ||||||
---|---|---|---|---|---|---|---|
Short-Run | Long-Run | Joint (Short/Long-Run) | |||||
F-values | t-values | F-values | |||||
ΔZ | ΔX | ΔY | εt-1 | ΔZ, εt-1 | ΔX, εt-1 | ΔY, εt-1 | |
Oil consumption and/or CO2 emissions do not cause economic growth | 7.244** | 8.515** | −3.890** | 17.777** | 17.601** | ||
(0.010) | (0.006) | (0.000) | (0.005) | (0.000) | |||
Economic growth and/or CO2 emissions do not cause oil consumption | 2.996** | 2.490* | −2.118** | 4.762** | 2.713* | ||
(0.045) | (0.086) | (0.042) | (0.007) | (0.061) | |||
Oil consumption and/or economic growth do not cause CO2 emissions | 1.825 | 5.320** | 1.439 | 2.793* | 5.590** | ||
(0.175) | (0.009) | (0.158) | (0.074) | (0.007) |
3.4. Discussions
4. Conclusions
Author Contributions
Conflicts of Interest
References and Notes
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Lim, K.-M.; Lim, S.-Y.; Yoo, S.-H. Oil Consumption, CO2 Emission, and Economic Growth: Evidence from the Philippines. Sustainability 2014, 6, 967-979. https://doi.org/10.3390/su6020967
Lim K-M, Lim S-Y, Yoo S-H. Oil Consumption, CO2 Emission, and Economic Growth: Evidence from the Philippines. Sustainability. 2014; 6(2):967-979. https://doi.org/10.3390/su6020967
Chicago/Turabian StyleLim, Kyoung-Min, Seul-Ye Lim, and Seung-Hoon Yoo. 2014. "Oil Consumption, CO2 Emission, and Economic Growth: Evidence from the Philippines" Sustainability 6, no. 2: 967-979. https://doi.org/10.3390/su6020967