A multivariate causality test of carbon dioxide emissions, energy consumption and economic growth in China

This paper uses multivariate co-integration Granger causality tests to investigate the correlations between carbon dioxide emissions, energy consumption and economic growth in China. Some researchers have argued that the adoption of a reduction in carbon dioxide emissions and energy consumption as a long term policy goal will result in a closed-form relationship, to the detriment of the economy. Therefore, a perspective that can make allowances for the fact that the exclusive pursuit of economic growth will increase energy consumption and CO₂ emissions is required; to the extent that such growth will have adverse effects with regard to global climate change.