The impact of coal consumption and CO₂ emission on economic growth

ABSTRACT

This study examined the long-run and the causal relationship between total coal consumption, CO₂ emission, and GDP growth in China, the United States, India, Germany, Russia, South Africa, Japan, Australia, Poland, and South Korea. The panel model was employed during the period 1992–2009. The results showed that total coal consumption and CO₂ emission have a long-run relationship with the GDP growth. In addition, there was a short-run positive bidirectional causal relationship between total coal consumption and CO₂ emission. However, total coal consumption and CO₂ emission have no short-run or long-run causal relationship with GDP growth. Thus energy conservation policies on total coal consumption such as rationing energy consumption and controlling CO₂ emissions are likely to have no negative impact on the real output growth of the investigated countries.

KEYWORDS:

• CO₂ emission
• economic growth
• panel model
• total coal consumption