The impact of economic growth on CO2 emissions in Australia: the environmental Kuznets curve and the decoupling index

Environmental Science and Pollution Research International
António Cardoso MarquesPatrícia Alexandra Leal

Abstract

Australia is the sixth largest country in the world, celebrating its 26th consecutive year without a recession. However, the country is one of the ten largest emitters of greenhouse gases, mainly caused by energy use. As such, Australia is facing a trade-off between economic growth and reducing carbon dioxide (CO2) emissions. This paper empirically analyses the relationship between economic growth and CO2 emissions in Australia, based on annual data from 1965 to 2016, considering the consumption of the fossil fuels oil and coal and renewable energy. This analysis is performed using the environmental Kuznets curve (EKC) and the Decoupling Index (DI). The EKC is assessed by employing the autoregressive distributed lag model. In addition, a robustness check is provided through the vector error correction model, which allows for the employment of the Granger causality test. The results show that in Australia, there is evidence for the EKC hypothesis, and that the country is undergoing increasing relative decoupling. These results mean that economic growth causes CO2 emissions and consequently environmental degradation. To achieve environmental targets and reduce the rate of CO2 emissions while continuing to grow, Australia needs to...Continue Reading

References

Aug 16, 2014·Journal of Environmental Management·Ana Jesús López-MenéndezBlanca Moreno

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Mar 4, 2020·Environmental Science and Pollution Research International·Guy Roland AssamoiAkadje Jean-Roland Edjoukou
Apr 9, 2020·Environmental Science and Pollution Research International·Lina ZhangFangjuan Li
Jan 7, 2019·Environmental Science and Pollution Research International·Tongtong ZhouShen Yu
Aug 10, 2019·Environmental Science and Pollution Research International·Yong WangYonghong Xu
Apr 11, 2020·International Journal of Environmental Research and Public Health·Asim AnwarInayat Ullah
Dec 19, 2019·Environmental Science and Pollution Research International·Hsiao-Tien Pao, Chun-Chih Chen
Jan 5, 2021·Environmental Science and Pollution Research International·Yanling XiXiangshan Fu
Apr 27, 2021·Environmental Science and Pollution Research International·Justo De Jorge-MorenoVirginia De Jorge-Huertas
Jul 25, 2021·International Journal of Environmental Research and Public Health·Haider MahmoodDoaa H I Mahmoud
Nov 14, 2021·Environmental Science and Pollution Research International·Bing HongYongshan Chen

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