Growth and CO2 emissions reduction in the BRIC countries: the effect of energy on the economic growth
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
This paper considers the dynamic causal relationships between different types of energy and GDP growth for a panel of BRIC1 countries over the period 1980-2010, except for Russia (1990-2010). A long-run equilibrium is established through the evidence of cointegration and the panel causality results indicate both long-run and short-run causality from the energy types to GDP growth. On the long-run, each energy consumption shows a significant impact on economic growth: strongly negative for fossil fuels (-10,48), positive for non-carbohydrates (+2,83) and highly positive for combustible renewable (+7,23). Short-term deviations from long term equilibrium is modeled by the error correction term: it takes 4,67 years to return to the equilibrium after a shock occurred. Overall, the previous literature and the results disclosed in this paper suggest that "clean energies" are replacing fossil fuels and stimulate growth. Further investigation should be conducted to assess the respective weight of energy efficiency and energy conservation on the panel trends.
Place, publisher, year, edition, pages
IdentifiersURN: urn:nbn:se:uu:diva-203613OAI: oai:DiVA.org:uu-203613DiVA: diva2:637079
Borota, Teodora, Forskare
Elinder, Mikael, Biträdande lektor