COMPARATIVE STUDY OF FACTORS AFFECTING CO2 CONTRIBUTION IN G20 COUNTRIES
DOI:
https://doi.org/10.26418/jebik.v13i3.76161Keywords:
CO2, ARDL, FGLS, EKCAbstract
This research examines the Environmental Kuznets Curve (EKC) hypothesis in G20 countries over 58 years, focusing on CO2 emissions. Using the Auto-Regressive Distributed Lag (ARDL) model with Feasible Generalized Least Squares (FGLS), the analysis accounts for heteroscedasticity in the observations. The findings reveal that industrial value-added per capita increases long-term emissions, whereas agricultural value-added per capita helps reduce emissions due to its environmentally friendly nature. Energy consumption significantly contributes to emissions, while urbanization exacerbates emissions in developing countries but tends to mitigate them in developed nations. A key insight is that GDP per capita in developing countries negatively impacts CO2 emissions in both the short and long term. In contrast, developed countries initially experienced rising emissions during industrialization but later reduced them by shifting to a service-based economy. It refers to the term "Dual-Path Emission Development", suggesting that developing countries do not necessarily have to follow the traditional EKC pattern of rising emissions before achieving reductions. This highlights the need for differentiated policies between developed and developing nations in addressing CO2 emissions.
JEL: Q50, C22.
References
Adedoyin, F. F., & Zakari, A. (2020). Energy Consumption, Economic Expansion, and CO2 Emission in the UK: The Role of Economic Policy Uncertainty. Science of the Total Environment, 738, 140014. https://doi.org/10.1016/j.scitotenv.2020.140014
Anwar, A., Ahmad, N., & Madni, G. R. (2020). Industrialization, Freight Transport and Environmental Quality: Evidence from Belt and Road Initiative Economies. Environmental Science and Pollution Research, 27(7), 7053–7070. https://doi.org/10.1007/s11356-019-07255-8
Ariefianto, M. D. (2012). Ekonometrika: Esensi dan Aplikasi dengan Menggunakan EViews. Erlangga.
Baltagi, B. H. (2003). Theoretical Econometrics. Journal of Chemical Information and Modeling, 53(9), 1689–1699. https://doi.org/10.1017/CBO9781107415324.004
Dasgupta, S., Laplante, B., Wang, H., & Wheeler, D. (2002). Confronting the Environmental Kuznets Curve. Journal of Economic Perspectives, 16(1), 147–168. https://doi.org/10.1257/0895330027157
Destek, M. A., Balli, E., & Manga, M. (2016). The Relationship between CO2 Emission, Energy Consumption, Urbanization and Trade Openness for Selected CEECs. Research in World Economy, 7(1), 52–58. https://doi.org/10.5430/rwe.v7n1p52
Esan, B., & Hassan, A. (2020). The Relationship between Carbon Dioxide Emissions, Energy Consumption, and Economic Growth in Nigeria. International Journal of Sustainable Energy and Environmental Research, 9(1), 46–55. https://doi.org/10.18488/journal.13.2020.91.46.55
Grossman, G. M., & Krueger, A. B. (1993) Environment Impacts of a North American Free Trade Agreement. MIT Press.
Gujarati, D. N., & Porter, D. C. (2010). Dasar-Dasar Ekonometrika = Basic Econometrics. Salemba Empat.
Ibrahim, S. S., Celebi, A., Ozdeser, H., & Sancar, N. (2017). Modelling the Impact of Energy Consumption and Environmental Sanity in Turkey: A STIRPAT Framework. Procedia Computer Science, 120, 229–236. https://doi.org/10.1016/j.procs.2017.11.233
Jalil, A., & Mahmud, S. F. (2009). Environment Kuznets Curve for CO2 Emissions: A Cointegration Analysis for China. Energy Policy, 37(12), 5167–5172. https://doi.org/10.1016/j.enpol.2009.07.044
John, S. O. (2020). Economic Growth , Co 2 Emission and the Environmental Kuznets Hypothesis in Kenya ; An Ardl Bounds Test Approach to Cointergration. IOSR Journal of Humanities and Social Science (IOSR-JHSS), 25(2), 41–52. https://doi.org/10.9790/0837-2502014152
Lim, K. M., Lim, S. Y., & Yoo, S. H. (2014). Oil Consumption, CO2 Emission, and Economic Growth: Evidence from the Philippines. Sustainability (Switzerland), 6(2), 967–979. https://doi.org/10.3390/su6020967
Linh, D., & Lin, S.-M. (2015). Dynamic Causal Relationships among CO2 Emissions, Energy Consumption, Economic Growth and FDI in the Most Populous Asian Countries. Advances in Management & Applied Economics, 5(1), 69-88.
Luo, G., Weng, J. H., Zhang, Q., & Hao, Y. (2017). A Reexamination of the Existence of Environmental Kuznets Curve for CO2 Emissions: Evidence from G20 Countries. Natural Hazards, 85(2), 1023–1042. https://doi.org/10.1007/s11069-016-2618-0
Magazzino, C. (2016). The Relationship between Real GDP, CO2 Emissions, and Energy Use in the GCC Countries: A Time Series Approach. Cogent Economics and Finance, 4(1), 1–20. https://doi.org/10.1080/23322039.2016.1152729
Moomaw, W. R., & Unruh, G. C. (1997). Are Environmental Kuznets Curves Misleading Us? The Case of CO2 Emissions. Environment and Development Economics, 2(4), 451–463. https://doi.org/10.1017/S1355770X97000247
Obradović, S., & Lojanica, N. (2017). Energy Use, CO2 Emissions and Economic Growth – Causality on a Sample of SEE Countries. Economic Research-Ekonomska Istrazivanja, 30(1), 511–526. https://doi.org/10.1080/1331677X.2017.1305785
Ozturk, I., & Acaravci, A. (2010). CO2 Emissions, Energy Consumption and Economic Growth in Turkey. Renewable and Sustainable Energy Reviews, 14(9), 3220–3225. https://doi.org/10.1016/j.rser.2010.07.005
Pedroni, P. (2004). Panel Cointegration: Asymptotic and finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis. Econometric Theory, 20(3), 597–625. https://doi.org/10.1017/S0266466604203073
Qiao, H., Zheng, F., Jiang, H., & Dong, K. (2019). The Greenhouse Effect of the Agriculture-Economic Growth-Renewable Energy Nexus: Evidence from G20 Countries. Science of the Total Environment, 671(March), 722–731. https://doi.org/10.1016/j.scitotenv.2019.03.336
Shabestari, N. B. (2018). Energy Consumption, CO2 Emissions and Economic Growth Sweden’s Case. National Economics, Spring 2018, 1-39.
Spetan, K. A. A. A. (2016). Renewable Energy Consumption , CO 2 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
Wolde, E. T., Mulugeta, W., & Muhammedhussen, M. (2016). Energy Consumption, Carbon Dioxide Emissions and Economic Growth in Ethiopia. Type: Double Blind Peer Reviewed Global Journal of Management and Business Research, 16(2), 1-9. https://journalofbusiness.org/index.php/GJMBR/article/view/1934
ADDITIONAL REFERENCES
Climate Transparency. (2018). Brown to Green: Transisi G20 Menuju Ekonomi Rendah Karbon. 1–15. https://www.climate-transparency.org/g20-climate-performance/g20report2018
Climate Transparency. (2019). The G20 Transition Towards a Net-Zero Emissions Economy. https://www.climate-transparency.org/wp-content/uploads/2019/11/B2G_2019_USA
Climate Transparency. (2022). G20 Respons To Eneggy Crisis: Critical For 1.50C. https://www.climate-transparency.org/g20-climate-performance/g20report2022
ICAT. (2023). Inititative for Climate Action Tranparancy. 2023 Impact Report. https://climateactiontransparency.org/wp-content/uploads/2024/02/impact-report-2023-interactive.pdf
International Energy Agency. (2020). Global Energy and CO2 Emissions in 2020. International Energy Agency. https://www.iea.org/data-and-statistics/data-tables?country=WORLD
UNEP. (2019). Emissions Gap Report 2019. UN Environment Programme. https://www.unep.org/resources/emissions-gap-report-2019
World Bank. (2020). World Development Indicators: August and September 2020. https://datahelpdesk.worldbank.org/knowledgebase/articles/906522-data-updates-and-errata
