Role of energy consumption and economic growth in the spread of greenhouse emissions: empirical evidence from Spain

Supported by a strong literature review, the main objective of this study is to investigate the causality relationships among energy consumption, greenhouse emissions (GHG) and economic growth (GDP) in Spain using Granger causality test. The empirical findings show that there is a bidirectional relationship between energy consumption and greenhouse emissions. Results indicate a positive and significant association between energy consumption and economic growth and that unidirectional causal link running from economic growth to greenhouse emissions is also found to exist at 5 % level. The non-renewable energy intensity in Spain’s economy is responsible for a modest reduction in greenhouse emissions. The overall findings will help the European Mediterranean countries like Spain to assess its position better in future climate change negotiations.