Eco-efficiency and Sustainability: An Analysis for the Philippines

Abstract

The aim of this paper was to explore the effect of energy consumption,   CO2 emissions, and population growth on the Gross Domestic Product (GDP) in the Philippines. Economic growth reflects the increase in production, consumption, and use of resources which are often associated with poor environmental quality. Many studies show that energy consumption used in production and consumption drives GDP, however, the use of energy leads to environmental degradation and many have concluded that economic growth is unsustainable. It has been perceived that economic growth and environmental goals conflict with each other. Population growth is also often associated with economic growth which affects the environment and the Philippines is one of the fastest urbanizing countries and overcrowded cities. Therefore, there is an urgent need for economic models to be sustainable. The relationship between energy consumption,  CO2 emissions, population growth, and GDP was assessed using regression analysis   (the   OLS   regression and   CLRM   assumptions).   Data from the Philippines between   1980–2019  were analyzed.  The OLS showed that energy consumption and population growth are both statistically significant; however, the CO2 emissions are insignificant. Moreover, most assumptions of CLRM are met except for the autocorrelation. Based on the results it is recommended that the Philippines should adopt and promote renewable energy sources that are reusable which can reduce CO2 emissions and ensure sustainable economic development of the Philippines. Hence, this study supports the need for a global transition to a green economy in the Philippines.