Volume 2 Issue 1 Article 4

Economic Growth and Air Pollution Dynamics: The Case of Canada

Writer(s): Achille Dargaud Fofack 1, Steve Yaw Sarpong 2, Damis Ferouz Kamna 3,

The root cause of the most important issues facing humanity today could be traced back to environmental mismanagement or inequality. Thus, the aim of this paper is to examine the dynamic relationship between economic growth and air pollution in Canada using cointegration tests, vector error correction models and causality tests on annual data from 1960 to 2014. The cointegration tests reveal that there is a long-run relationship between economic growth, trade and air pollution in Canada. The results also show that in the long-run, economic growth and trade respectively have a positive and a negative impact on air pollution. The vector error correction models reveal that the coefficient associated with the error correction term is negative and significant. This means that, any shock disturbing the long-run equilibrium between economic growth, trade and air pollution will be corrected at a speed of 10 percent per year. As for the causality analyses, they show that economic growth does not cause air pollution in Canada.



Keyword(s): Air pollution, CO2 Emissions, Economic Growth, Sustainable Growth,

  • [1] OECD, 2012, Green Growth and Developing Countries, Consultation draft 2012, https://www.oecd.org/greengrowth/green-development/50559116.pdf
  • [2] Daly, H., 1990, Towards Some Operational Principles of Sustainable Development, Ecological Economics, Vol. 2, 1-5.
  • [3] Brock, W., Taylor, S., 2009, Economic Growth and the Environment: a Review of Theory and Empirics, NBER Working Paper No. 10854.
  • [4] Grossman, G., Krueger, A., 1995, Economic Growth and the Environment. Quarterly Journal of Economics, Vol. 110(2), 353–377.
  • [5] Kuznets, S., 1955, Economic Growth and Income Inequality, American Economic Review, Vol. 45, 1-28.
  • [6] Qun, B., Peng, S., 2006, Economic Growth and Environmental Pollution: a Panel Data Analysis, In Garnaut, R., Song, L., The Turning Point in China's Economic Development, ANU Press, 298-307.
  • [7] Acheampong, A., 2008, Economic Growth, CO2 Emissions and Energy Consumption: What Causes What and Where?, Energy Economics, Vol. 74, 679–684.
  • [8] Sadorsky, P., Renewable Energy Consumption and Income in Emerging Economies, Energy Policy, Vol. 37, 4021-4028.
  • [9] He, J., Richard, P., 2010, Environmental Kuznets Curve for CO2 in Canada, Ecological Economics, Vol. 69(5), 1083-1093.
  • [10] Apergis, N., Payne, J., 2011, The Renewable Energy Consumption-Growth Nexus in Central America, Applied Energy, Vol. 88(1), 343-347.
  • [11] Adu, D., Denkyirah, E., 2017, Economic Growth and Environmental Pollution in West Africa: Testing the Environmental Kuznets Curve Hypothesis, Kasetsart Journal of Social Sciences, 1-8.
  • [12] Mikayilov, J., Galeotti, M., Hasanov, F., 2018, The Impact of Economic Growth on CO2 Emissions in Azerbaijan, Journal of Cleaner Production, Vol. 197, 1560-1565.
  • [13] Asici, A., 2011, Economic Growth and its Impact on Environment: a Panel Data Analysis, Munich Personal RePec Archive, 2-19.
  • [14] Zheng, H., Huai, W., Huang, L., 2015, Relationship Between Pollution and Economic Growth in China: Empirical Evidence from 111 cities, Journal of Urban and Environmental Engineering Vol. 9, 24-28.
  • [15] Acar, S., Tekce, M., 2014, Economic Development and Industrial Pollution in the Mediterranean Region: a Panel Data Analysis, Topics in Middle Eastern and African Economies, Vol. 16(1), 70-83.
  • [16] Burnett, J., 2009, Economic Growth and Environmental Degradation. Selected paper prepared for presentation at the Southern Agricultural Economics Association Annual Meeting, Atlanta, Georgia.
  • [17] Dickey, D., Fuller, W., 1981, Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root. Econometrica, Vol. 49, 1057-1072.
  • [18] Phillips, P., Perron, P., 1988, Testing for Unit Roots in Time Series Regression, Biometrika, Vol. 75, 335-346.
  • [19] Ng, S., Perron, P., 2001, Lag Length Selection and the Construction of Unit Root Tests with Good Size and Power, Econometrica, Vol. 69(6), 1519-1554
  • [20] Johansen, S., 1988, Statistical Analysis of Cointegration Vectors, Journal Economic Dynamics and Control, Vol. 12, 231-254.
  • [21] Johansen, S., Juselius, K., 1990, Maximum Likelihood Estimation and Inference on Cointegration with Applications to the Demand for Money. Oxford Bulletin Economics and Statistics, Vol. 52, 169-210.
  • [22] Granger, C., 1969, Investigating Causal Relations by Econometric Models and Cross-Spectral Methods, Econometrica, Vol. 37(3), 424-438.
  • [23] Pigou, A., 1920, The Economics of Wellfare, London, England: Macmillan and Company.
  • [24] Solow, R., 1991, Sustainability: An Economist’s Perspective, Woods Hole, Massachusetts, USA.

SOURCE SHOW

Citation type: APA

Achille Dargaud Fofack, Steve Yaw Sarpong, Damis Ferouz Kamna. (2019). Economic Growth and Air Pollution Dynamics: The Case of Canada. Ulusal Çevre Bilimleri Araştırma Dergisi, 2 ( 1 ) , 0-0. http://ijepem.com/volume-2/issue-1/article-4/

Citation type: BibTex

@article{2019, title={Economic Growth and Air Pollution Dynamics: The Case of Canada}, volume={2}, number={1}, publisher={International Journal of Environmental Pollution and Environmental Modelling}, author={Achille Dargaud Fofack, Steve Yaw Sarpong, Damis Ferouz Kamna}, year={2019}, pages={0-0} }

Citation type: MLA

Achille Dargaud Fofack, Steve Yaw Sarpong, Damis Ferouz Kamna. Economic Growth and Air Pollution Dynamics: The Case of Canada. no. 2 International Journal of Environmental Pollution and Environmental Modelling, (2019), pp. 0-0.