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Pollution, Electricity Consumption, and Income in the Context of Trade Openness in Zambia
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
2016 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This paper examines the Environmental Kuznets Curve (EKC) hypothesis and tests for causality using Dynamic Ordinary Least Squares (DOLS) and the Vector Error Correction Model (VECM). There is evidence of long-run relationships in the three models under consideration. The Dynamic Ordinary Least Squares (DOLS) finds no evidence to support the existence of an environmental Kuznets curve (EKC) hypothesis for Zambia in the long-run. The evidence from the long-run suggests an opposite of the Environmental Kuznets Curve (EKC), in that the results indicate a U-shaped curve relationship between income and carbon emission. The conclusion on causality based on the VECM is that there is evidence of neutrality hypothesis between either total electricity and income or between industrial electricity and income in the short-run Additionally, there is evidence of conservation hypothesis in the context of residential and agricultural electricity consumption.

Place, publisher, year, edition, pages
Keyword [en]
Dynamic OLS, Vector Error Correction Model, real GDP, CO2 Emissions, Electricity consumption and Foreign Trade
National Category
URN: urn:nbn:se:umu:diva-124715OAI: diva2:954461
Available from: 2016-08-22 Created: 2016-08-22

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