ORIGINAL RESEARCH
Modelling Coal Energy Consumption
and Economic Growth: Does Asymmetry Matter
in the Case of South Africa?
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1
Faculty of Economics, Administrative, and Social Sciences, Department of International Logistics and Transportation
Istanbul Gelisim University, Istanbul, Turkey.
2
Adnan Kassar School of Business, Department of Economics Lebanese American University, Beirut, Lebanon
3
Economics Department, Babcock University, Ikenne, Ogun State, Nigeria
4
Keele Business School Denise Coates Foundation Building Keele University Staffordshire ST5 5AA
5
College of Business, Finance and Banking Department Dar Al Uloom University, Riyadh Saudi Arabia
6
Department of Industrial Management, School of Management, New Uzbekistan University, Tashkent, Uzbekistan
7
Faculty of Economics Administrative and Social Sciences, Department of Economics
and Finance Istanbul Gelisim University, Istanbul, Turkey
8
Department of Economics, Faculty of Economics and Administrative Sciences, Cyprus International University,
Nicosia Northern Cyprus via Mersin-10, Turkey
Submission date: 2022-07-20
Final revision date: 2022-10-24
Acceptance date: 2022-12-10
Online publication date: 2023-02-24
Publication date: 2023-04-14
Corresponding author
Gizem Uzuner
Economics and Finance, Istanbul Gelisim University, Turkey
Pol. J. Environ. Stud. 2023;32(3):2029-2042
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ABSTRACT
In accordance with the Intergovernmental Panel on Climate Change (IPCC), Kyoto protocol and
the United Nations Sustainable development goals (UNSDGs) on climate action (SDG-13), there has
been a need across economies for transition from fossil-fuel-based energy sources such as coal energy
consumption to cleaner energy options i.e., a transition to a low-carbon economy. To this end, the present
study explores the asymmetric relationship between coal energy consumption, economic growth, rising
urban population and emission level in South Africa. The present study span is conducted on an annual
frequency basis from 1965-2018. This study applies the novel Non-linear Autoregressive distributed
lag methodology (NARDL) for the highlighted variables. Empirical results validate the asymmetric
relationship between the variables under review over the study period. The NARDL regression further
shows positive shock by GDP increases CO2 emission level while negative impact affects otherwise
in the long run. On the other hand, coal consumption positive shock exhibits a detrimental impact
on environmental quality in South Africa. This is insightful for policymakers. The urban population
shows non-significant effect on emission levels over the sampled period. The knowledge of both positive
and negative shock effects of GDP, coal energy consumption and urban growth is vital for policy construction in terms of both economic and environmental sustainability. Thus, policy prescription
ranges from energy transition to alternative and cleaner energy sources like renewables and responsible
energy consumption (SDG-12) should be pursued in South Africa. More far-reaching environmental
policies are highlighted in the concluding section.