| Publication |
2011.
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| Summary/Abstract |
This paper investigates the dynamic relationships between output, energy consumption, carbon emission and price levels of Bangladesh during the period 1973-2009 using multivariate vector error-correction model. To complement the findings of the co-integration analysis, this study performs various causality tests to shed light on the causal links between output-energy and output-pollution. The empirical results reveal that in Bangladesh there is short-run unidirectional causality from energy consumption to output. The direction of causality indicates that any energy conservation measure might be detrimental to the current Bangladesh economy. Since Bangladesh cannot aggressively implement energy conservation mechanisms, the only environment-friendly policy option could be to implement clean energy technologies. Therefore, this paper further investigates the prospects of clean energy technologies and offers some way forward in this regard for Bangladesh.
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