Μοdeling Environmental Degradation: The Effects of Electricity Consumption, Economic Growth and Globalization


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Authors

  • Pavlos Stamatiou Department of Economic Sciences, International Hellenic University, Greece.

DOI:

https://doi.org/10.32479/ijeep.14626

Keywords:

Envrironmental Degradation, Electricity Consumption, Economic Growth, CO2 Emissions, Globalization, Panel Data

Abstract

This study aims to explore the effects of electricity consumption, economic growth and globalization on CO2 emissions in the case of the top ten electricity consuming countries. The sample used is annual data covering the period 1990-2018. This paper adopts the cross-sections independence and controls the heterogeneity between cross-sections by using the second generation econometric of panel data. More precisely, the CIPS unit root test, Pedroni (1999) cointegration, Westerlund (2007) bootstrap cointegration, and FMOLS and DOLS techniques have been applied. Additionally, the Dumitrescu and Hurlin (2012) panel causality test is used to investigate the causal nexus among the examined variables. The findings of the study support that all variables are integrated in the long run. Electricity consumption and economic growth have a positive and significant effect on CO2 emissions in these countries. On the other hand, globalization has a negative and significant effect on CO2 emissions, implying the improvement of environmental quality. The results also support the Environmental Kuznets Curve (EKC), as well as bidirectional causalities between economic growth and CO2 emissions, between electricity consumption and CO2 emissions, and between economic growth and globalization. Furthermore, unidirectional causalities running from globalization to CO2 emissions, from economic growth to electricity consumption, and from electricity consumption to globalization are found. Policy implications are further discussed.

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Author Biography

Pavlos Stamatiou, Department of Economic Sciences, International Hellenic University, Greece.

Dr. Pavlos Stamatiou is currently a Lecturer at University of Macedonia, Greece. He holds a BSc, MSc, PhD, and Post-Doc in Economics & Econometrics. His dissertation was conducted under the supervision of Professor Nikolaos Dritsakis. Dr. Dritsakis holds an international honorary distinction for his article which is among the top five in the field of tourism economy (applied economics and policies, economic development) for the period 2004-2014. Pavlos has taught (as Lecturer and Visiting Professor) at several faculties, both in Greece and abroad (prior The University of Sheffield, International Faculty). His main research interests lie in the area of applied economics and econometrics. The analysis of large datasets and application of these to empirical macroeconomics and finance, aiming to contribute to contemporary policy issues. Pavlos’ research output has been published in well respected academic journals (e.g. ABS Journal List, SCImago Journal List), as well as has been presented at various global conferences.

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Published

2023-09-16

How to Cite

Stamatiou, P. (2023). Μοdeling Environmental Degradation: The Effects of Electricity Consumption, Economic Growth and Globalization. International Journal of Energy Economics and Policy, 13(5), 62–72. https://doi.org/10.32479/ijeep.14626

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Articles