Coal Consumption, Industrial Production and CO2 Emissions in China and India

Muhammad Shahbaz, Sahbi Farhani and Ilhan Ozturk

MPRA Paper from University Library of Munich, Germany

Abstract: The present study explores the relationship between coal consumption, industrial production and CO2 emissions in case of China and India for the period of 1971-2011. The structural break unit root test and cointegrating approach have been applied. The direction of causal relationship between the variables is investigated by applying the VECM Granger causality test. Our results validate the presence of cointegration among the series in both countries. We also find the existence of inverted U-shaped curve between industrial production and CO2 emissions for India but for China it is U-shaped relationship. Coal consumption adds in CO2 emission. The causality analysis reveals that industrial production and coal consumption Granger cause CO2 emission in India. In case of China, the feedback effect exists between coal consumption and CO2 emissions.

Keywords: Coal consumption; Industrial production; CO2 emissions; China; India (search for similar items in EconPapers)
JEL-codes: C4 (search for similar items in EconPapers)
Date: 2013-10-10, Revised 2013-10-12
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Related works:
Working Paper: Coal Consumption, Industrial Production and CO2 Emissions in China and India (2014)
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