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Econometrics of Green Energy Handbook pp 111–130Cite as

The Causality Between Energy Consumption, Urban Population, Carbon Dioxide Emissions, and Economic Growth

Abstract

This study evaluates the relationship between electric power consumption and urbanization comparing the econometric results of autoregressive distributed lag (ARDL) and vector autoregressive (VAR) for the period 1960–2015. Granger causality is also applied to the Portuguese economy. In this study, we use some hypotheses that describe the link between electric power consumption, urban population, carbon dioxide emissions, and economic growth. The motivation of this research focuses on the relationship between electric power consumption (energy consumption) and urban population, supported by the theoretical and empirical contributions of energy and urban economics. The empirical results show that electric power consumption presents a causality with economic growth, urban population, carbon dioxide emissions, and international trade. This research also proves that there is cointegration between all variables in the long run. This paper presents significant contributions to economic policy, showing that there exists an association between energy consumption and economic growth.

Keywords

  • Energy consumption
  • Economic growth
  • Carbon dioxide emissions
  • Time series

JEL Classification

  • Q43
  • Q50

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Author information

Authors and Affiliations

  1. Center for Advanced Studies in Management and Economics, Polytechnic Institute of Santarém, Évora University, Evora, Portugal

    Nuno Carlos Leitão

  2. Center for African and Development Studies, Lisbon University, Lisbon, Portugal

    Nuno Carlos Leitão

  3. Department of Political Economy and Public Finance, Economic and Business Statistics and Economic Policy, University of Castilla-La Mancha, Cuenca, Spain

    Daniel Balsalobre-Lorente

Authors
  1. Nuno Carlos Leitão
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  2. Daniel Balsalobre-Lorente
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Corresponding author

Correspondence to Nuno Carlos Leitão .

Editor information

Editors and Affiliations

  1. School of Management and Economics, Beijing Institute of Technology, Beijing, China

    Prof. Muhammad Shahbaz

  2. Department of Political Economy and Public Finance, Universidad de Castilla-La Mancha, Cuenca, Spain

    Prof. Daniel Balsalobre-Lorente

Appendix

Appendix

See Table 5.11.

Table 5.11 Energy consumption and Portuguese urban population growth with VAR model
Full size table

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Leitão, N.C., Balsalobre-Lorente, D. (2020). The Causality Between Energy Consumption, Urban Population, Carbon Dioxide Emissions, and Economic Growth. In: Shahbaz, M., Balsalobre-Lorente, D. (eds) Econometrics of Green Energy Handbook. Springer, Cham. https://doi.org/10.1007/978-3-030-46847-7_5

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  • DOI: https://doi.org/10.1007/978-3-030-46847-7_5

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