Abstract:

In this study, it’s been analyzed that if there is the correlation between the CO emissions, electricity consumption and economic growth in the OECD countries between the years of 19802010. As a result of panel cointegration tests, it was concluded that there is cointegration relationships between CO2 emissions, Gross Domestic Product and electricity consumption. Long-term forecasts has shown that there is statistically significant relationship between electricity consumption and CO2 emissions in the majority of 30 OECD countries. Also the conclusion supporting the Environmental Kuznets Curve (EKC) hypothesis which means that there is a nonlinear relationship between CO emissions and economic growth were reached. Finally results of Panels Vector Error Correction Model are show that there is a one-way causality relationship between Gross Domestic Product and CO emissions and there is bi-directional causality relationship between Gross Domestic Product and electricity consumption in the short term

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