Energy, environment and growth nexus in South Asia
Team Members: Dr. Vaqar Ahmed, Muhammad Zeeshan
The present study investigates the energy, environment and growth nexus for a panel of South Asian countries including Bangladesh, India, Pakistan, Sri Lanka and Nepal. The simultaneous analysis of real GDP, energy consumption and CO2 emissions is conducted for the period 1980–2010. Levin panel unit root test and Im test panel unit root both indicate that all the variables are I (1). In addition, Kao’s panel Cointegration test speciﬁes a stable long-term relationship between all these variables. Empirical ﬁndings show that a 1 % increase in energy consumption increases output by 0.81 % in long run whereas for the same increase in CO2 emission output falls by 0.17 % in long run. Panel Granger causality tests report short-run causality running from energy consumption to CO2 emissions and from CO2 emissions to GDP.