A Note on Oil Consumption and Growth: The Role of Greenhouse Gases Emissions

Sarah Nandnaba (), Abebe Hailemariam, Rangan Gupta and Xin Sheng ()
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Sarah Nandnaba: Department of Economics, Ecole normale superieure (ENS) Paris-Saclay, 91190 Gif-sur-Yvette, France.
Xin Sheng: Lord Ashcroft International Business School, Anglia Ruskin University, Chelmsford, United Kingdom.

No 202417, Working Papers from University of Pretoria, Department of Economics

Abstract: The paper empirically examines the role of Greenhouse Gases (GHGs) emissions on the oil consumption-growth nexus of sixteen OECD countries. Using a nonlinear local projection approach and a long historical dataset from 1890 to 2022, we find that the impact of oil consumption on economic growth is conditional on the categorization of the countries based on the level of GHGs emissions. More specifically, we find that economies under the high-emission category face a slowdown in growth, while those in low-emission group can benefit from a positive shock in oil consumption, especially in the post World War II era. The results have important policy implications for sustainable growth.

Keywords: Oil consumption; economic growth; sustainability; climate change; greenhouse gases emissions; nonlinear local projection (search for similar items in EconPapers)
JEL-codes: Q43 Q53 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2024-04
New Economics Papers: this item is included in nep-ene, nep-env, nep-eur, nep-his and nep-res
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Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:202417

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