Examining the Relationships between Energy Use, Fossil Fuel Consumption, Carbon Dioxide Emissions, and Economic Growth in Southeast Asia

Abstract

This article examines the relationships between energy use, fossil fuel consumption, CO₂ emissions, and economic growth in three developing countries in Southeast Asia between 1988 and 2017. We found that the GDP per capita positively affects per capita CO₂ emissions, and that it has a positive relationship with per capita energy use. Additionally, we found that GDP per capita is negatively affected by fossil fuel consumption, whereas it is positively affected by per capita CO₂ emissions. Moreover, results show directional relationships running from per capita CO₂ emissions to GDP per capita, from GDP per capita to per capita energy use, from GDP per capita to fossil fuel consumption, and from GDP per capita to per capita CO₂ emissions. We found cointegration among the variables at the 1% critical value and two levels of cointegration among variables at the 5% critical value. Finally, we recommend policies to boost economic growth, reduce CO2 emissions, and achieve sustainable development in Southeast Asia.

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