A Trivariate Causality Test: A Case Study in Cameroon

Jean Gaston Tamba, Francis Djanna Koffi, Michel Lissouck, Max Ndame, Ngwa Engelbert Afuoti

Department of Thermal and Energy Engineering, University Institute of Technology, University of Douala, Douala, Cameroon.

DOI: 10.4236/am.2014.513195                

Abstract

In this paper, we examine the causal relationship between diesel consumption, CO₂ emissions and GDP in Cameroon during the period 1975-2008. Cointegration and vector error-correction modelling techniques are used in this study. ADF tests show that the series, after logarithmic transformation, are non-stationary and integrated of order one.This study finds the presence of a long-run equilibrium relationship between the variables. The results of the Granger-causality tests for time series have been estimated.

Keywords

Causality, Coitegration, VECM, Cameroon

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	Ghosh, S. (2010) Examining Carbon Emissions Economic Growth Nexus for India: A Multivariate Cointegration Approach. Energy Policy, 38, 3008-3014. http://dx.doi.org/10.1016/j.enpol.2010.01.040
[2]	Omri, A. (2013) CO2 Emissions, Energy Consumption and Economic Growth Nexus in Mena Countries: Evidence from Simultaneous Equations Models. Energy Economics, 40, 657-664. http://dx.doi.org/10.1016/j.eneco.2013.09.003
[3]	Stern, D. (2004) The Rise and Fall of the Environmental Kuznets Curve. World Development, 32, 1419-1439. http://dx.doi.org/10.1016/j.worlddev.2004.03.004
[4]	Dinda, S. (2004) Environmental Kuznets Curve Hypothesis: A Survey. Ecological Economics, 49, 431-455. http://dx.doi.org/10.1016/j.ecolecon.2004.02.011
[5]	Kraft, J. and Kraft, A. (1987) On the Relationship between Energy and GNP. Journal of Energy and Development, 3, 401-403.
[6]	Tamba, J.G., Njomo, D., Limanond, T. and Ntsafack, B. (2012) Causality Analysis of Diesel Consumption and Economic Growth in Cameroon. Energy Policy, 45, 567-575. http://dx.doi.org/10.1016/j.enpol.2012.03.006
[7]	Fondja Wandji, Y.D. (2013) Energy Consumption and Economic Growth: Evidence from Cameroon. Energy Policy, 61, 1295-1304. http://dx.doi.org/10.1016/j.enpol.2013.05.115
[8]	Lotfalipour, M.R., Falahi, M.A. and Ashena, M. (2010) Economic Growth, CO2 Emissions, and Fossil Fuels Consumption in Iran. Energy, 35, 5115-5120. http://dx.doi.org/10.1016/j.energy.2010.08.004
[9]	Chandran Govindaraju, V.G.R. and Tang, C.F. (2013) The Dynamic Links between CO2 Emissions, Economic Growth and Coal Consumption in China and India. Applied Energy, 104, 310-318. http://dx.doi.org/10.1016/j.apenergy.2012.10.042
[10]	Engle, R.F. and Granger, C.W.J. (1987) Co-Integration and Error Correction: Representation Estimation and Testing. Econometrica, 55, 251-276. http://dx.doi.org/10.2307/1913236
[11]	Dickey, D.A. and Fuller, W.A. (1981) Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root. Econometrica, 49, 1057-1072. http://dx.doi.org/10.2307/1912517
[12]	Johansen, S. (1988) Statistical Analysis of Cointegrating Vectors. Journal of Economic Dynamics and Control, 12, 231-254. http://dx.doi.org/10.1016/0165-1889(88)90041-3
[13]	Johansen, S. (1991) Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vectors Autoregressive Models. Econometrica, 59, 1551-1580. http://dx.doi.org/10.2307/2938278
[14]	Johansen, S. and Juselius, K. (1990) Maximum Likelihood Estimation and Inferences on Cointegration with Application to the Demand for Money. Oxford Bulletin of Economics and Statistics, 52, 169-210. http://dx.doi.org/10.1111/j.1468-0084.1990.mp52002003.x
[15]	Belloumi, M. (2009) Energy Consumption and GDP in Tunisia: Cointegration and Causality Analysis. Energy Policy, 37, 2745-2753. http://dx.doi.org/10.1016/j.enpol.2009.03.027
[16]	Granger, C.W.J. (1988) Some Recent Developments in Concept of Causality. Journal of Econometrics, 39, 199-211. http://dx.doi.org/10.1016/0304-4076(88)90045-0
[17]	Ang, J.B. (2007) CO2 Emissions, Energy Consumption, and Output in France. Energy Policy, 35, 4772-4778. http://dx.doi.org/10.1016/j.enpol.2007.03.032
[18]	Ang, J.B. (2008) Economic Development, Pollutant Emissions and Energy Consumption in Malaysia. Journal of Policy Modeling, 30, 271-278. http://dx.doi.org/10.1016/j.jpolmod.2007.04.010
[19]	Odhiambo, N.M. (2009) Electricity Consumption and Economic Growth in South Africa: A Trivariate Causality Test. Energy Economics, 31, 635-640. http://dx.doi.org/10.1016/j.eneco.2009.01.005
[20]	World Bank (2012) Development Indicators Database. http://databank.worldbank.org/ddp/home.do?Step=3&id=4