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ORIGINAL RESEARCH
Nexus of Electricity Consumption, Economic
Growth and CO2 Emissions: Evidence
from Low and High-Income Countries
1
School of Business Administration, South China University of Technology, Guangzhou, 510642 China
2
School of Business Administration, Zhongnan University of Economics and Law, Wuhan, 430073, PR China
Submission date: 2024-01-31
Final revision date: 2024-03-30
Acceptance date: 2024-04-18
Online publication date: 2024-09-03
Publication date: 2025-01-28
Corresponding author
Zhuang Zhang
School of Business Administration, Zhongnan University of Economics and Law, Wuhan, 430073, PR China
School of Business Administration, Zhongnan University of Economics and Law, Wuhan, 430073, PR China
Pol. J. Environ. Stud. 2025;34(3):2449-2459
KEYWORDS
TOPICS
ABSTRACT
Using data from global low and high-income countries over 35 years (from 1980 to 2014), we tried
to find the correlations between electricity consumption, economic development, and CO2 emissions by
employing the PVAR (Panel Vector Auto Regressive) model, impulse response function, and variance
decomposition method. It demonstrates that electricity consumption and CO2 are Granger reasons for
economic growth in the two group countries, but GDP and CO2 emissions can only guide the exploration
of electricity energy in high-income countries. Technological differences between the two groups of
countries lead to different costs in energy usage; low-income countries are unable to carry out electric
energy innovation and revolution while high-income countries can. For sustainable development, lowincome
countries should pay attention to the development and application of energy technologies, but
not only GDP.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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