Renewable Energy Consumption, CO<sub>2</sub> Emissions and Economic Growth: A Case of Jordan

Khawlah Ali Ahmed AbdAlla Spetan

doi:doi:10.11648/j.ijber.20160506.15

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Renewable Energy Consumption, CO₂ Emissions and Economic Growth: A Case of Jordan

Khawlah Ali Ahmed AbdAlla Spetan

Published in International Journal of Business and Economics Research (Volume 5, Issue 6)

Received: 19 October 2016 Accepted: 31 October 2016 Published: 23 November 2016

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Abstract

This study inspects the causal relationship between renewable energy consumption, CO₂ emissions, labor, capital and economic growth for Jordan over the period 1986-2012 within a multivariate framework. The time series cointegration test suggests a long-run equilibrium relationship among real GDP, renewable energy consumption, real gross fixed capital formation and labor force. The outcomes of the error correction models reveal that there is a unidirectional causality running from renewable energy consumption to real GDP. Also there is a unidirectional causality running from renewable energy consumption to carbon dioxide while unidirectional causality is revealed from real GDP to capital and finally bidirectional causality is detected between capital and renewable energy consumption in the short-run. Furthermore the error correction terms indicate that there is a long-run bidirectional causality between the variables except for labor model which is statistically insignificant. In addition the outcomes revealed that an increase in the usage of renewable energy has a desirable effect on environment as it reduces the CO₂ emissions.

Published in	International Journal of Business and Economics Research (Volume 5, Issue 6)
DOI	10.11648/j.ijber.20160506.15
Page(s)	217-226
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Jordan, Renewable Energy Consumption, CO₂, Economic Growth, Granger Causality, VECM

References

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Khawlah Ali Ahmed AbdAlla Spetan. (2016). Renewable Energy Consumption, CO2 Emissions and Economic Growth: A Case of Jordan. International Journal of Business and Economics Research, 5(6), 217-226. https://doi.org/10.11648/j.ijber.20160506.15

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ACS Style

Khawlah Ali Ahmed AbdAlla Spetan. Renewable Energy Consumption, CO2 Emissions and Economic Growth: A Case of Jordan. Int. J. Bus. Econ. Res. 2016, 5(6), 217-226. doi: 10.11648/j.ijber.20160506.15

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AMA Style

Khawlah Ali Ahmed AbdAlla Spetan. Renewable Energy Consumption, CO2 Emissions and Economic Growth: A Case of Jordan. Int J Bus Econ Res. 2016;5(6):217-226. doi: 10.11648/j.ijber.20160506.15

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@article{10.11648/j.ijber.20160506.15,
  author = {Khawlah Ali Ahmed AbdAlla Spetan},
  title = {Renewable Energy Consumption, CO2 Emissions and Economic Growth: A Case of Jordan},
  journal = {International Journal of Business and Economics Research},
  volume = {5},
  number = {6},
  pages = {217-226},
  doi = {10.11648/j.ijber.20160506.15},
  url = {https://doi.org/10.11648/j.ijber.20160506.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20160506.15},
  abstract = {This study inspects the causal relationship between renewable energy consumption, CO2 emissions, labor, capital and economic growth for Jordan over the period 1986-2012 within a multivariate framework. The time series cointegration test suggests a long-run equilibrium relationship among real GDP, renewable energy consumption, real gross fixed capital formation and labor force. The outcomes of the error correction models reveal that there is a unidirectional causality running from renewable energy consumption to real GDP. Also there is a unidirectional causality running from renewable energy consumption to carbon dioxide while unidirectional causality is revealed from real GDP to capital and finally bidirectional causality is detected between capital and renewable energy consumption in the short-run. Furthermore the error correction terms indicate that there is a long-run bidirectional causality between the variables except for labor model which is statistically insignificant. In addition the outcomes revealed that an increase in the usage of renewable energy has a desirable effect on environment as it reduces the CO2 emissions.},
 year = {2016}
}

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TY  - JOUR
T1  - Renewable Energy Consumption, CO2 Emissions and Economic Growth: A Case of Jordan
AU  - Khawlah Ali Ahmed AbdAlla Spetan
Y1  - 2016/11/23
PY  - 2016
N1  - https://doi.org/10.11648/j.ijber.20160506.15
DO  - 10.11648/j.ijber.20160506.15
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 217
EP  - 226
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20160506.15
AB  - This study inspects the causal relationship between renewable energy consumption, CO2 emissions, labor, capital and economic growth for Jordan over the period 1986-2012 within a multivariate framework. The time series cointegration test suggests a long-run equilibrium relationship among real GDP, renewable energy consumption, real gross fixed capital formation and labor force. The outcomes of the error correction models reveal that there is a unidirectional causality running from renewable energy consumption to real GDP. Also there is a unidirectional causality running from renewable energy consumption to carbon dioxide while unidirectional causality is revealed from real GDP to capital and finally bidirectional causality is detected between capital and renewable energy consumption in the short-run. Furthermore the error correction terms indicate that there is a long-run bidirectional causality between the variables except for labor model which is statistically insignificant. In addition the outcomes revealed that an increase in the usage of renewable energy has a desirable effect on environment as it reduces the CO2 emissions.
VL  - 5
IS  - 6
ER  -

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Author Information

Khawlah Ali Ahmed AbdAlla Spetan

Department of Business Economics, the University of Jordan, Amman, Jordan

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APA Style

Khawlah Ali Ahmed AbdAlla Spetan. (2016). Renewable Energy Consumption, CO2 Emissions and Economic Growth: A Case of Jordan. International Journal of Business and Economics Research, 5(6), 217-226. https://doi.org/10.11648/j.ijber.20160506.15

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ACS Style

Khawlah Ali Ahmed AbdAlla Spetan. Renewable Energy Consumption, CO2 Emissions and Economic Growth: A Case of Jordan. Int. J. Bus. Econ. Res. 2016, 5(6), 217-226. doi: 10.11648/j.ijber.20160506.15

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AMA Style

Khawlah Ali Ahmed AbdAlla Spetan. Renewable Energy Consumption, CO2 Emissions and Economic Growth: A Case of Jordan. Int J Bus Econ Res. 2016;5(6):217-226. doi: 10.11648/j.ijber.20160506.15

Copy | Download

@article{10.11648/j.ijber.20160506.15,
  author = {Khawlah Ali Ahmed AbdAlla Spetan},
  title = {Renewable Energy Consumption, CO2 Emissions and Economic Growth: A Case of Jordan},
  journal = {International Journal of Business and Economics Research},
  volume = {5},
  number = {6},
  pages = {217-226},
  doi = {10.11648/j.ijber.20160506.15},
  url = {https://doi.org/10.11648/j.ijber.20160506.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20160506.15},
  abstract = {This study inspects the causal relationship between renewable energy consumption, CO2 emissions, labor, capital and economic growth for Jordan over the period 1986-2012 within a multivariate framework. The time series cointegration test suggests a long-run equilibrium relationship among real GDP, renewable energy consumption, real gross fixed capital formation and labor force. The outcomes of the error correction models reveal that there is a unidirectional causality running from renewable energy consumption to real GDP. Also there is a unidirectional causality running from renewable energy consumption to carbon dioxide while unidirectional causality is revealed from real GDP to capital and finally bidirectional causality is detected between capital and renewable energy consumption in the short-run. Furthermore the error correction terms indicate that there is a long-run bidirectional causality between the variables except for labor model which is statistically insignificant. In addition the outcomes revealed that an increase in the usage of renewable energy has a desirable effect on environment as it reduces the CO2 emissions.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Renewable Energy Consumption, CO2 Emissions and Economic Growth: A Case of Jordan
AU  - Khawlah Ali Ahmed AbdAlla Spetan
Y1  - 2016/11/23
PY  - 2016
N1  - https://doi.org/10.11648/j.ijber.20160506.15
DO  - 10.11648/j.ijber.20160506.15
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 217
EP  - 226
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20160506.15
AB  - This study inspects the causal relationship between renewable energy consumption, CO2 emissions, labor, capital and economic growth for Jordan over the period 1986-2012 within a multivariate framework. The time series cointegration test suggests a long-run equilibrium relationship among real GDP, renewable energy consumption, real gross fixed capital formation and labor force. The outcomes of the error correction models reveal that there is a unidirectional causality running from renewable energy consumption to real GDP. Also there is a unidirectional causality running from renewable energy consumption to carbon dioxide while unidirectional causality is revealed from real GDP to capital and finally bidirectional causality is detected between capital and renewable energy consumption in the short-run. Furthermore the error correction terms indicate that there is a long-run bidirectional causality between the variables except for labor model which is statistically insignificant. In addition the outcomes revealed that an increase in the usage of renewable energy has a desirable effect on environment as it reduces the CO2 emissions.
VL  - 5
IS  - 6
ER  -

Copy | Download