The Stochastic Convergence of CO2 Emissions: A Long Memory Approach

Marco Barassi, Matthew Cole and Robert Elliott ()

Discussion Papers from Department of Economics, University of Birmingham

Abstract: In response to equity concerns surrounding the spatial distribution of CO2 emissions and the assumptions of CO2 convergence within some climate models, this paper examines the convergence of CO2 emissions within the OECD over the period 1870-204. More specifically, using the Local Whittle estimator and its variants we examine whether relative per capita CO2 emissions are fractionally integrated, that is they are long memory processes which, although highly persistant, may revert to the mean/trend in the long run. Our results suggest that CO2 emissions within 13 out of 18 OECD countries are indeed fractionally integrated implying that they converge over time, albeit slowly. Interestingly though, the countries whose emissions are not found to be fractionally integrated are some of the highest polluters within the OECD, at least in per capita terms. Our results have implications both for future studies of CO2 convergence and for climate policy.

Keywords: Fractional Integration; Local Whittle Estimation (search for similar items in EconPapers)
Pages: 22 pages
Date: 2010-11
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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https://repec.cal.bham.ac.uk/pdf/10-32.pdf

Related works:
Journal Article: The Stochastic Convergence of CO 2 Emissions: A Long Memory Approach (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:bir:birmec:10-32

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