Renewable energy consumption, nonrenewable energy consumption, CO2 emissions and economic growth in Vietnam

Abstract

PurposeThis study intended to analyze the impact of nonrenewable energy consumption, renewable energy consumption, CO2 emissions on per capita income growth in Vietnam in the period 1990–2019.Design/methodology/approachThe present study adopts the technique of the Autoregressive Distributed Lag (ARDL) cointegration for the annual data collection of Vietnam.FindingsThe results of the study show that in the long term, nonrenewable energy consumption increases per capita income, but CO2 emissions reduce per capita income. In the short run, changes in nonrenewable energy consumption and renewable energy consumption promote per capita income growth in Vietnam. However, changes in nonrenewable energy consumption in the past have had a negative impact on the current income growth of Vietnamese people.Originality/valueThe current study provides new insights into the growth effect of nonrenewable energy consumption, renewable energy consumption and CO2 emissions. The papers suggests important implications to Vietnam in setting the long-run policies to boost the effect of energy consumption and CO2 emissions on growth in Vietnam in the coming time.