CARBON DIOXIDE EMISSIONS, ENERGY CONSUMPTION, AND ECONOMIC GROWTH IN A TRANSITION ECONOMY: EMPIRICAL EVIDENCE FROM CAMBODIA

Abstract

This study examines the inter-relationship among carbon dioxide (CO2) emissions, energy consumption, and economic growth for a Mekong River Commission (MRC) country - Cambodia. The empirical results suggest that real gross domestic product (GDP), energy consumption, and CO2 emissions are cointegrated. It needs 11 years to achieve a long-run equilibrium. There is a unidirectional causality from real GDP to energy consumption, and a bidirectional causality between real GDP, and CO2 emissions. The CO2 emissions are related to energy consumption through real GDP. This study is relevant and importance for Cambodia in formulating energy policies, for example, the revision of national energy efficiency policy.