CO2 Emissions and GDP: Evidence from China

Guglielmo Maria Caporale, Gloria Claudio-Quiroga and Luis Gil-Alana

No 7881, CESifo Working Paper Series from CESifo

Abstract: This paper examines the relationship between the logarithms of CO2 emissions and real GDP in China by applying fractional integration and cointegration methods. The univariate results indicate that the two series are highly persistent, their orders of integration being around 2, whilst the cointegration tests (using both standard and fractional techniques) imply that there exists a long-run equilibrium relationship between the two variables in first differences, i.e. their growth rates are linked together in the long run. This suggests the need for environmental policies aimed at reducing emissions during periods of economic growth.

Keywords: CO2 emissions; GDP; China; persistence; fractional integration; fractional cointegration (search for similar items in EconPapers)
JEL-codes: C22 C32 Q56 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-cna, nep-ene, nep-env and nep-ets
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_7881

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