Pollution, Energy and Growth: Evidence from Post-Communist Countries

Avazbek Sadikov, Nargiza Kasimova, Arletta Isaeva, Anastas Khachaturov, Raufhon Salahodjaev

Abstract


This paper investigates the empirical relationship between carbon dioxide emissions, economic growth and energy use in post-communistic countries during 1990-2018. Pedroni’s (1999) panel cointegration test discovered cointegrating relationship between the variables. To distinguish short- and long-term effect, as well as to account for homogeneity caused by previous common socio-political system and current country specific characteristics, Pesaran’s (1999) Pooled Mean Group estimator is employed. PMG estimates identified short- and long-term relationship between energy use and CO2 emissions and short-term relationship between CO2 emissions and economic growth.  Finally, the Dumitrescu and Hurlin’s (2012) Granger non-causality test for heterogeneous panels revealed bidirectional causality between CO2 emissions, energy use and economic growth. 

Keywords: CO2 emissions, economic growth, energy consumption, post-communistic countries.

JEL Classifications: C23, P18, O47

DOI: https://doi.org/10.32479/ijeep.9637


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