An investigation of the role of China's urban population on coal consumption - 0 views
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Monique Abud on 25 Jun 12DOI : http://dx.doi.org.gate3.inist.fr/10.1016/j.enpol.2012.05.080 [ScienceDirect, via Biblio-SHS] Auteur : Nyakundi M. Michieka, Jerald J. Fletcher Paru dans : Energy Policy, Available online 22 June 2012 Abstract This paper investigates the causal relationship between urban population, real GDP, electricity production and coal consumption in China for the period 1971-2009. Using a vector autoregression framework and a modified version of the Granger (1969) causality test proposed by Toda and Yamamoto (J. Econ. 66 (1995) 225), the results suggest that there is causality running from GDP to coal consumption. The variance decomposition analysis report that urban population and coal affect electricity production variability over the forecast period. We also find that increasing urban population may negatively affect China's GDP over time. Policy measures aimed at influencing GDP could ultimately affect coal consumption. Highlights ► We find Granger Causality running from GDP to coal consumption. ► China can mitigate the adverse environmental effects of coal by altering GDP path. ► We find Granger Causality running from urbanization to electricity production. ► China needs to find other sources of energy to cater for growing electricity demand. ► Increasing urban population may slow economic growth due to overcrowding in cities.