Dynamic Relationships between Energy Use, Income, and Environmental Degradation in Afghanistan


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Authors

  • Nora Yusma Mohamed Yusoff Department of Energy Economics and Management College of Energy Economics and Social Sciences Universiti Tenaga Nasional
  • Hussain Ali Bekhet
  • S.M. Mahrwarz

Abstract

This study examines the dynamic relationship between energy use, income, and environmental degradation in Afghanistan using annual data from 1970 to 2016. The dynamic causal relationship among variables are being tested; grounded by four testable hypotheses (growth, conservation, feedback, and neutrality). The F-bounds test, Dynamic OLS, and VECM Granger causality are utilized. The empirical results confirm that there is a long-run relationship among the variables and the energy use and GDP both affects the CO2 emissions in the long run. The conservation and environmental policies would have detrimental impact to economic growth of Afghanistan, as this country become an energy dependent country. In the short run, there is bidirectional causality running from energy use and economic growth. These results support the “feedback hypothesis” and possesses some policy implications which suggests that economic development and energy use may be jointly determined since economic growth is closely related to energy consumption.Keywords: Causal relationship; F-Bounds test; Energy Consumption; Economic growth; CO2 emissions; AfghanistanJEL Classifications: Q2, Q4DOI: https://doi.org/10.32479/ijeep.8249

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Author Biography

Nora Yusma Mohamed Yusoff, Department of Energy Economics and Management College of Energy Economics and Social Sciences Universiti Tenaga Nasional

  Nora Yusma received the degree in B.Econs. in Economics and Administration (Hons.) (1995), and the M.A (Islamic Finance and Economics) (2003) from University of Malaya and Ph.D. degrees in Energy Economics from University Tenaga Nasional, Putrajaya, Malaysia, in  She is a Head of Department, College of Energy Business and Economics, Universiti Tenaga Nasional. She actively involves in various energy economics research and consultancy projects at national and international level that are closely related to energy economic analysis, energy security studies, energy efficiency, energy pricing and tariff studies, carbon tax and environmental impacts, smart grid studies, renewable energy, energy conservation policy and modelling and forecasting the energy demand and etc. in Malaysia for various sectors.

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Published

2020-03-17

How to Cite

Yusoff, N. Y. M., Bekhet, H. A., & Mahrwarz, S. (2020). Dynamic Relationships between Energy Use, Income, and Environmental Degradation in Afghanistan. International Journal of Energy Economics and Policy, 10(3), 51–61. Retrieved from https://econjournals.com/index.php/ijeep/article/view/8249

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