How economic growth in Australia reacts to CO2 emissions, fossil fuels and renewable energy consumption. Issue 4 (5th November 2018)

• Record Type: Journal Article
• Authors: Leal, Patrícia H.; Marques, Antonio Cardoso; Fuinhas, Jose Alberto
• Is Part Of: International journal of energy sector management. Volume 12:Issue 4(2018)
• Page Start: 696
• Page End: 713
• Publication Date: 2018-11-05
• Subjects: CO2 emission -- Time series analysis -- Energy sector -- Autoregressive -- Carbon emissions -- Error correction models; Energy industries -- Management -- Periodicals; 333.79068
• DOI: 10.1108/IJESM-01-2018-0020
• Languages: English
• ISSNs: 1750-6220

Abstract

Abstract : Purpose: Australia is one of the ten largest emitters of greenhouse gases but stands out from the others due to its economic growth without recession for 26 consecutive years. This paper aims to focus on the energy-growth nexus and the effects of energy consumption on the environment in Australia. Design/methodology/approach: This analysis is performed using annual data from 1965 to 2015 and the autoregressive distributed lag model. Findings: The paper finds empirical evidence of a trade-off between economic growth and carbon dioxide (CO2 ) intensity. The results show that increased gross domestic product (GDP) in Australia increased investment in renewable energy sources (RESs), although the renewable technology is limited and has no impact on reducing CO2 intensity in the long run. In contrast to investment in RES, fossil fuels, coal and oil, are decreased by GDP. However, oil consumption increased renewable energy consumption, and this reflects the pervading effect of the growing economy. Originality/value: Overall, this paper contributes to the literature by analysing the behaviour of both energy consumption and the environment on the growing Australian economy. In addition, this paper goes further by studying the impact of economic growth on renewable and non-renewable energy consumption, as well as on CO2 emissions. The study is conducted on a single country for which literature is scarce, using a recent approach and a long time period.