The Causality Relationships between Energy-related CO2 Emissions and its Influencing Factors with Linear and Nonlinear Granger Causality Tests
Lei Wen, Yue Li
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Department of Economics and Management, North China Electric Power University,
Baoding, Hebei 071003, China
Online publish date: 2017-05-26
Publish date: 2017-05-26
Submission date: 2016-09-28
Final revision date: 2016-11-24
Acceptance date: 2016-11-24
Pol. J. Environ. Stud. 2017;26(3):1313–1322
At present, research on relationships between carbon dioxide emissions and its influencing factors are concerned with linear causality relationships, and most literature has focused on the economic field to find its influencing factors. This article aims to investigate the causality relationships between carbon dioxide emissions and its influencing factors in China through the traditional Granger causality test and the Hiemstra and Jones test. The paper not only considers economic factors, but also takes social factors into consideration. It has been concluded that linear Granger causality relationships exist from CO2 emissions to GDP, gross national income, and freight traffic volume. Compared with linear relationships, unidirectional nonlinear Granger causality relationships run from CO2 emissions to resident consumption levels, and also from the urban population to CO2 emissions. Moreover, there are bidirectional nonlinear causality relationships between CO2 emissions and GDP, and between CO2 emissions and the possession of private automobiles. Finally, based on the above conclusions, this article analyzes energy-saving and emission reduction measures as proposed by the Chinese government, and puts forward policy recommendations to reduce carbon dioxide emissions.