Energy Consumption, Economic Growth, CO2 Emissions: Evidence from Post - Soviet Independent Countries

Abstract

The issue of global warming and its effect on society is in core of a global agenda. For the last two decade countries are suffering from the threat of global warming. Therefore, a lot of studies were conducted, which claim that CO2 emissions is effecting economic growth. Energy in turn is fundamental for economic process, since higher level of energy consumption leads to higher economic growth. However, most studies show that energy consumption is often a key determinant of CO2 emission. Therefore, this research investigates the relationship between energy consumption, economic growth and CO2 emissions for 13 Post –Soviet countries for the period of 1995– 2014. To estimate the relationship, the two step generalised method of moments (2 step GMM) technique was employed. The empirical result showed that there is positive relationship between energy consumption, economic growth and CO2 emissions. As well as the result showed the existence of EKC in 13 Former Soviet Union countries.