Analysis of Causality between Economic Growth and Carbon Emissions: The Case of Mexico 1971-2011

This paper analyzes the Environmental Kuznets Curve (EKC) hypothesis to test the causality relationship between economic activity, trade openness and carbon dioxide emissions in Mexico (1971-2011). The results achieved in this research show that there are three long-run relationships between production, trade openness, energy consumption and carbon dioxide emissions. The EKC hypothesis was not verified in this research. Indeed, it was found evidence of a short-term unidirectional causality from GDP and GDP squared to carbon dioxide emissions, from GDP, GDP squared and TO to EC, and bidirectional causality between TO and GDP. Finally, it was found evidence of long-term unidirectional causality from all variables to carbon emissions. These results suggest that a reduction in energy consumption, economic activity, or an increase in trade openness would reduce pollution.

Disclosing the Relationship among CO2 Emissions, Energy Consumption, Economic Growth and Bilateral Trade between Singapore and Malaysia: An Econometric Analysis

The aim of this paper is to examine the relationship among CO2 per capita emissions, energy consumption, economic growth and bilateral trade between Singapore and Malaysia for the 1970-2011 period. ARDL model and Granger causality tests are employed for the analysis.  Results of bound F-statistics suggest that long-run  relationship exists between CO2 per capita (PCO2) and its determinants. The EKC hypothesis is not supported in Malaysia. Carbon emissions are mainly determined by energy consumption in the short and long run. While, exports to Singapore is a significant variable in explaining PCO2 emissions in Malaysia in long-run. Furthermore, we find a unidirectional causal relationship running from economic growth to PCO2 emissions.