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Environ Sci Pollut Res Int. 2016 Sep;23(17):17850-6. doi: 10.1007/s11356-016-7211-2. Epub 2016 Jul 15.

The emission abatement policy paradox in Australia: evidence from energy-emission nexus.

Author information

1
Sukkur Institute of Business Administration, Sukkur, 65200, Pakistan.
2
Faculty of Economics and Administrative Sciences, Cag University, 33800, Mersin, Turkey. ilhanozturk@cag.edu.tr.

Abstract

This paper attempts to investigate the emissions embodied in Australia's economic growth and disaggregate primary energy sources used for electricity production. Using time series data over the period of 1990-2012, the ARDL bounds test approach to cointegration technique is applied to test the long-run association among the underlying variables. The regression results validate the long-run equilibrium relationship among all vectors and confirm that CO2 emissions, economic growth, and disaggregate primary energy consumption impact each other in the long-run path. Afterwards, the long- and short-run analyses are conducted using error correction model. The results show that economic growth, coal, oil, gas, and hydro energy sources have positive and statistically significant impact on CO2 emissions both in long and short run, with an exception of renewables which has negative impact only in the long run. The results conclude that Australia faces wide gap between emission abatement policies and targets. The country still relies on emission intensive fossil fuels (i.e., coal and oil) to meet the indigenous electricity demand.

KEYWORDS:

Australia; CO2 emissions; Economic growth; Electricity

PMID:
27421853
DOI:
10.1007/s11356-016-7211-2
[Indexed for MEDLINE]

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