The Carbon-Neutral Energy Consumption and Emission Volatility: The Causality Analysis of ASEAN Region
The use of renewable energy sources and carbon emissions has been debated from various perspectives throughout recent decades. However, the causal relationship between green energy sources and carbon emissions volatility has received limited attention. This study aims to close a knowledge gap in thi...
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doaj-280bb0a10a17456c8613f79fc66262c92021-06-01T00:29:16ZengMDPI AGEnergies1996-10732021-05-01142943294310.3390/en14102943The Carbon-Neutral Energy Consumption and Emission Volatility: The Causality Analysis of ASEAN RegionShu Wu0Majed Alharthi1Weihua Yin2Qaiser Abbas3Adnan Noor Shah4Saeed ur Rahman5Jamal Khan6Sino-German College, University of Shanghai for Science and Technology, Shanghai 200093, ChinaFinance Department, College of Business, King Abdulaziz University, P.O. Box 344, Rabigh 21911, Saudi ArabiaBusiness School, Shanghai Jian Qiao University, Shanghai 200444, ChinaDepartment of Economics, Ghazi University, Dera Ghazi Khan 32200, PakistanDepartment of Agricultural Engineering, Khwaja Fareed University of Engineering and Information Technology, Rahim Yar Khan 64200, PakistanDepartment of Economics, Ghazi University, Dera Ghazi Khan 32200, PakistanInstitute for Region and Urban–Rural Development, Wuhan University, Wuhan 430072, ChinaThe use of renewable energy sources and carbon emissions has been debated from various perspectives throughout recent decades. However, the causal relationship between green energy sources and carbon emissions volatility has received limited attention. This study aims to close a knowledge gap in this area. The current study analyzes the renewable energy sources (wind, hydro, and geothermal) and carbon emissions of four ASEAN countries (Indonesia, Thailand, Vietnam, and the Philippines) between 2000 and 2019. The present study combined Chudik and Pesaran’s (2015) newly developed Dynamic Common Correlated Effects (DCCE) with cutting-edge investigation tools such as first- and second-generation unit root tests; CS-dependence; Variance inflation factor test for multicollinearity; and Pedroni, Kao, and Wester Lund tests of co-integration. The Granger causality test is also used to check the short-term and long-term causal effects within the renewable energy sources and green energy sources, and carbon volatility. According to the empirical results, green energy sources make a positive and vital contribution to reducing carbon emissions growth in the above-noted ASEAN economies. Furthermore, short- and long-run causality runs from green energy sources to carbon emission volatility in the region. A significant causality relationship has also been observed within the green energy sources of ASEAN.https://www.mdpi.com/1996-1073/14/10/2943carbon-neutralgreen energyclimate changeASEANgranger causality |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Shu Wu Majed Alharthi Weihua Yin Qaiser Abbas Adnan Noor Shah Saeed ur Rahman Jamal Khan |
spellingShingle |
Shu Wu Majed Alharthi Weihua Yin Qaiser Abbas Adnan Noor Shah Saeed ur Rahman Jamal Khan The Carbon-Neutral Energy Consumption and Emission Volatility: The Causality Analysis of ASEAN Region Energies carbon-neutral green energy climate change ASEAN granger causality |
author_facet |
Shu Wu Majed Alharthi Weihua Yin Qaiser Abbas Adnan Noor Shah Saeed ur Rahman Jamal Khan |
author_sort |
Shu Wu |
title |
The Carbon-Neutral Energy Consumption and Emission Volatility: The Causality Analysis of ASEAN Region |
title_short |
The Carbon-Neutral Energy Consumption and Emission Volatility: The Causality Analysis of ASEAN Region |
title_full |
The Carbon-Neutral Energy Consumption and Emission Volatility: The Causality Analysis of ASEAN Region |
title_fullStr |
The Carbon-Neutral Energy Consumption and Emission Volatility: The Causality Analysis of ASEAN Region |
title_full_unstemmed |
The Carbon-Neutral Energy Consumption and Emission Volatility: The Causality Analysis of ASEAN Region |
title_sort |
carbon-neutral energy consumption and emission volatility: the causality analysis of asean region |
publisher |
MDPI AG |
series |
Energies |
issn |
1996-1073 |
publishDate |
2021-05-01 |
description |
The use of renewable energy sources and carbon emissions has been debated from various perspectives throughout recent decades. However, the causal relationship between green energy sources and carbon emissions volatility has received limited attention. This study aims to close a knowledge gap in this area. The current study analyzes the renewable energy sources (wind, hydro, and geothermal) and carbon emissions of four ASEAN countries (Indonesia, Thailand, Vietnam, and the Philippines) between 2000 and 2019. The present study combined Chudik and Pesaran’s (2015) newly developed Dynamic Common Correlated Effects (DCCE) with cutting-edge investigation tools such as first- and second-generation unit root tests; CS-dependence; Variance inflation factor test for multicollinearity; and Pedroni, Kao, and Wester Lund tests of co-integration. The Granger causality test is also used to check the short-term and long-term causal effects within the renewable energy sources and green energy sources, and carbon volatility. According to the empirical results, green energy sources make a positive and vital contribution to reducing carbon emissions growth in the above-noted ASEAN economies. Furthermore, short- and long-run causality runs from green energy sources to carbon emission volatility in the region. A significant causality relationship has also been observed within the green energy sources of ASEAN. |
topic |
carbon-neutral green energy climate change ASEAN granger causality |
url |
https://www.mdpi.com/1996-1073/14/10/2943 |
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