The Relationship between Economic Growth, Energy Consumption and Carbon Dioxide Emissions: Evidence from Central Asia
This article aims to explore the relationship between economic growth, energy consumption and CO2 emissions of five Central Asian countries between 1998 and 2017. We found that per capita energy consumption has a positive relationship with per capita GDP, while per capita CO2 emissions negatively affect per capita GDP in Central Asia. Further, per capita GDP has a negative impact on per capita energy consumption in the region. Results reflect that the economic growth of Central Asian countries still heavily depends upon energy consumption. However, CO2 emissions in this region should be reduced because it has been defined as a determinant leading to a decrease in economic growth. In the short run, we also found that there is a directional relationship running from per capita GDP to per capita energy consumption and per capita CO2 emissions; and from per capita energy consumption to per capita GDP. Results show that there is a co-integration among variables in the long run. Finally, policies are recommended to enhance economic growth and achieve sustainable development in Central Asia.