Detecting the Relationship between Economic Growth, CO2 and Energy Consumption by Using Panel Data Approach

Many scholars have shown their interest into the relationship between energy consumption (EC), gross domestic product (GDP) and emissions. The main objective of this study is to investigate the relationship between GDP, EC and CO2 within multivariate model by using panel data method in Asian countries; Korea, Malaysia, Japan and China for annually data during the period 1960 to 2010. The main finding shows that CO2 can be explained more than 86% & 78% by EC and GDP in each of cross section model and period model respectively. As a result of that, CO2 emissions should be considered as an important factor in energy consumption and gross domestic product by policy maker.