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This paper examines the changes to pollution intensities (SO2, NOx, CO and CO2) of the United Kingdom, by using the Divisia index decomposition technique. The paper decomposes the drivers of the changes in pollution intensities into not only technology contribution and composition contribution but also into physical capital intensity contribution. This is because an increase in physical capital will lead to further use of energy and resources, which will further impact the environment. Compared to past studies, this paper extends the analysis to each industrial sector and includes more focused policy implications. The results find that the aggregate pollution intensity has declined during the period examined. As for SO2and NOx, the technology effect was the largest contributor for the decline in aggregate pollution intensity, during a period where economic instruments such as pollution taxes were not yet effectively applied to combat environmental issues, but major environmental statutory frameworks to regulate air pollution were developed along with voluntary measures such as environment management systems. On the other hand, concerning CO and CO2over the same time period observed, the contribution of technology effect for the aggregate intensity was small, compared with SO2, and NOx, which implies that economic instruments such as emission trading may be necessary for these pollutant. [ABSTRACT FROM AUTHOR]

In this paper, we empirically investigate the causal nexus between economic growth (GDP), CO2 emissions (environmental degradation), financial development, and trade openness using the ordinary least squares technique for a yearly panel data of 40 European economies, during the period of study from 1985 to 2014. To examine this causal link, we utilize the Cobb–Douglas production function. The empirical findings point to a bidirectional Granger causal linkage among GDP and pollution, GDP and financial sector development, GDP and trade openness, financial sector development and trade openness, and trade openness and pollution in the case of European economies. From the causal link between GDP and environmental pollutants, we validate the existence/confirm the validity of the environmental Kuznets curve hypothesis. Also, we confirm/bear out the feedback suggestion of the bidirectional causality among trade openness and financial sector development. Besides, we find the neutrality hypothesis linking carbon emissions and financial sector development inflows. We find the presence of the bidirectional nexus between GDP and financial sector development and among GDP and trade openness in the European economies. Finally, panel causality verifies that bidirectional causal connection is found between economic growth, environmental degradation (CO2), financial development, and trade openness. [ABSTRACT FROM AUTHOR]

This paper examines the relationship among real GDP, CO2 emissions, and energy use in the six Gulf Cooperation Council (GCC) countries. Using annual data for the years 1960–2013, stationarity, structural breaks, and cointegration tests have been conducted. The empirical evidence strongly supports the presence of unit roots. Cointegration tests reveal the existence of a clear long-run relationship only for Oman. Granger causality analysis shows that for three GCC countries (Kuwait, Oman, and Qatar) the predominance of the "growth hypothesis" emerges, since energy use drives the real GDP. Moreover, only for Saudi Arabia a clear long-run relation has not been discovered. Finally, the results of the variance decompositions and impulse response functions broadly confirm our previous empirical findings. Our results significantly reject the assumption that energy is neutral for growth. Notwithstanding, since the causality results are different for the six GCC countries, unified energy policies would not be the good recipe for the whole area. [ABSTRACT FROM AUTHOR]

This study investigated the effect of economic growth on CO2emission using the dynamic panel threshold framework. The analysis is based on data from a panel of 31 developing countries. The results indicate that economic growth has negative effect on CO2emission in the low growth regime but positive effect in the high growth regime with the marginal effect being higher in the high growth regime. Thus our finding provides no support for the Environmental Kuznets Curve (EKC) hypothesis; rather aU-shaped relationship is established. Energy consumption and population were also found to exert positive and significant effect on CO2emission. Including financial development indicator in the model did not change the conclusion about EKC hypothesis. Employing panel causality methods, there is evidence of significant causal relationship between CO2emission, economic growth, energy consumption and financial development. The findings emphasize the need for transformation of low carbon technologies aimed at reducing emissions and sustainable economic growth. This may include energy efficiency and switch away from non-renewable energy to renewable energy. [ABSTRACT FROM AUTHOR]