Granger Causality Test

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Wei Liu - One of the best experts on this subject based on the ideXlab platform.

  • does the environmental kuznets curve for co2 emissions exist for rwanda evidence from bootstrapped rolling window Granger Causality Test
    Sustainability, 2020
    Co-Authors: Felix Nutakor, Sylvestre Bizumuremyi, Wei Liu
    Abstract:

    This paper examined the causal relationship between economic growth and carbon dioxide emissions (CO2) in Rwanda using annual data from 1960–2014. The study was conducted within the framework of the environmental Kuznets curve (EKC) hypothesis using the rolling-window bootstrap Granger Causality Test approach with a rolling-window size of 15 years. The methodology allows for non-constancy in the parameters of the vector autoregression (VAR) model in the short run as well as in the long run. The study found bi-direction Causality between the real gross domestic product (GDP) and CO2 emissions in metric tons per capita. The results from the rolling-window bootstrap Granger Causality Test show that GDP negatively influenced CO2 emissions in the 1976–1977, 1990–1993, 2005–2006, and 2007–2013 sub-sample periods. This result depicts a monotonically decreasing EKC, contrary to the standard EKC relationship. The downward-sloping EKC was explained by the transition of the Rwandan economy from an industrial-based economy to a service-based economy. Further, a feedback effect from CO2 emissions to the economy was established.

Xibao Zhang - One of the best experts on this subject based on the ideXlab platform.

  • Testing for the existence of the environmental kuznets curve ekc for co 2 emissions in ghana evidence from the bootstrap rolling window Granger Causality Test
    Environmental Science and Pollution Research, 2021
    Co-Authors: Michael Kaku Minlah, Xibao Zhang
    Abstract:

    This paper investigates the existence of the Environmental Kuznets Curve for carbon dioxide emissions in Ghana. The causal relationship between economic growth and carbon dioxide emissions being examined and the short-run and long-run parameters of the estimated vector autoregressive models are found to be unstable. This necessitated the use of a time-varying approach and the rolling window Granger Causality Test to investigate the causal relationship between economic growth and carbon dioxide emissions. We find that GDP has a positive effect on carbon dioxide emissions in the sample periods where GDP Granger causes carbon dioxide emissions. Significant feedbacks from the environment to the economy are observed, with carbon dioxide emissions having a positive effect on GDP in most of the subsample periods. The empirical results show that the Environmental Kuznets Curve for carbon dioxide emissions for Ghana is upward sloping, contrary to the standard Environmental Kuznets Curve theory which postulates an inverted "U"-shaped relationship between economic growth and environmental degradation. The implication of the result is that carbon dioxide emissions increase with increases in GDP. The study recommends that existing policies designed to ensure environmental sustainability and hence control carbon dioxide emissions need to be strengthened and enforced to ensure that the rapid urbanization and industrialization of the Ghanaian economy does not come at a cost to the quality of the environment.

Felix Nutakor - One of the best experts on this subject based on the ideXlab platform.

  • does the environmental kuznets curve for co2 emissions exist for rwanda evidence from bootstrapped rolling window Granger Causality Test
    Sustainability, 2020
    Co-Authors: Felix Nutakor, Sylvestre Bizumuremyi, Wei Liu
    Abstract:

    This paper examined the causal relationship between economic growth and carbon dioxide emissions (CO2) in Rwanda using annual data from 1960–2014. The study was conducted within the framework of the environmental Kuznets curve (EKC) hypothesis using the rolling-window bootstrap Granger Causality Test approach with a rolling-window size of 15 years. The methodology allows for non-constancy in the parameters of the vector autoregression (VAR) model in the short run as well as in the long run. The study found bi-direction Causality between the real gross domestic product (GDP) and CO2 emissions in metric tons per capita. The results from the rolling-window bootstrap Granger Causality Test show that GDP negatively influenced CO2 emissions in the 1976–1977, 1990–1993, 2005–2006, and 2007–2013 sub-sample periods. This result depicts a monotonically decreasing EKC, contrary to the standard EKC relationship. The downward-sloping EKC was explained by the transition of the Rwandan economy from an industrial-based economy to a service-based economy. Further, a feedback effect from CO2 emissions to the economy was established.

Michael Kaku Minlah - One of the best experts on this subject based on the ideXlab platform.

  • Testing for the existence of the environmental kuznets curve ekc for co 2 emissions in ghana evidence from the bootstrap rolling window Granger Causality Test
    Environmental Science and Pollution Research, 2021
    Co-Authors: Michael Kaku Minlah, Xibao Zhang
    Abstract:

    This paper investigates the existence of the Environmental Kuznets Curve for carbon dioxide emissions in Ghana. The causal relationship between economic growth and carbon dioxide emissions being examined and the short-run and long-run parameters of the estimated vector autoregressive models are found to be unstable. This necessitated the use of a time-varying approach and the rolling window Granger Causality Test to investigate the causal relationship between economic growth and carbon dioxide emissions. We find that GDP has a positive effect on carbon dioxide emissions in the sample periods where GDP Granger causes carbon dioxide emissions. Significant feedbacks from the environment to the economy are observed, with carbon dioxide emissions having a positive effect on GDP in most of the subsample periods. The empirical results show that the Environmental Kuznets Curve for carbon dioxide emissions for Ghana is upward sloping, contrary to the standard Environmental Kuznets Curve theory which postulates an inverted "U"-shaped relationship between economic growth and environmental degradation. The implication of the result is that carbon dioxide emissions increase with increases in GDP. The study recommends that existing policies designed to ensure environmental sustainability and hence control carbon dioxide emissions need to be strengthened and enforced to ensure that the rapid urbanization and industrialization of the Ghanaian economy does not come at a cost to the quality of the environment.

Yiru Wang - One of the best experts on this subject based on the ideXlab platform.