TITLE:
Environmental Pollution Nexus Economic Growth and Energy Consumption
AUTHORS:
Michel Mivumbi, Xiaoling Yuan
KEYWORDS:
Johansen Test, VAR, Air Pollution, Energy Consumption, Economic Growth
JOURNAL NAME:
Modern Economy,
Vol.12 No.4,
March
31,
2021
ABSTRACT: This
paper tests relationship between Rwanda’s environmental pollution, human capital, physical capital, economic growth and
energy consumption as Solow model function in period of 1990 and 2018. Paper
used Johansen co-integration test method to estimate the long-run coefficients
with the constant level relationship of variables and VAR for short-run
coefficients. Verification of long runs co-integration equilibrium Rwanda’s air
pollution was found to depend on energy consumption significantly and economic
growth insignificantly with positive coefficient and, slightly incline CO2 emission pollution. One percent increase to physical capital and human capital
with negative coefficients and significance decline CO2 emission
pollution. VAR implies that human capital affects Rwanda’s air pollution for short-term. Rwandan’s government should promote
policies on new technology in economic development and, the managing method of
human capital, physical capital and energy consumption to reduce CO2 emission that can adopted by government’s sustainable environmental protection.