The influence of energy consumption and democratic institutions on output and CO2 emissions in Bangladesh : a time-frequency approach

Abstract

This paper reports the results of a study that investigates the causal interactions among the entities energy consumption, democracy, income, and CO2 emissions in Bangladesh. Bootstrapping causality and time-frequency domain causality methods were adopted to examine the causal co-movements between the variables, using data series for a period of more than four decades. Results show that time-scale behavior plays an important role. Democracy is an important factor for emissions and national income. The nexus of democracy and CO2 emission is bidirectional. The impact of democracy on CO2 is stronger than vice versa. This study provides new insights for policymakers : democratic practices play an important role in implementing climate change policies, at least in the case of Bangladesh.