Economic growth, energy, and the environment
Effects of fossil fuel substitution in the energy matrix
DOI:
https://doi.org/10.17533/udea.le.n105a357770Keywords:
PVAR, Fossil fuels, CO2 emissionsAbstract
The dynamic interrelationship between economic growth, the percentage of fossil fuels in the energy matrix, energy use, and CO2 emissions was examined. A panel vector autoregression (PVAR) was calculated for 75 countries and different income groups between 1974 and 2013. Our main results reveal that the shock reduces the percentage of fossil fuels in the energy matrix, in CO2 emissions per capita and in energy use per capita while not statistically affecting GDP per capita. In addition, the causality between economic growth and energy use is bidirectional in high-income and upper-middle-income countries. In contrast, energy causes economic growth in lower-middle-income and low-income countries. Finally, we found no evidence to support the Kuznets environmental curve (EKC).
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Copyright (c) 2025 Yuri Cesar de Lima e Silva, Luis Abel da Silva Filho, Andrei de Lima e Silva
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