Will be there New CO2 Emitters in the Future? Evidence of Longrun Panel Co-integration for N-11 Countries

Mohammad Nasre Esfahani and Ehsan Rasoulinezhad
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Mohammad Nasre Esfahani: Faculty of Economics, Kharazmi University, Tehran, Iran
Ehsan Rasoulinezhad: PhD Student of Economics, Faculty of Economics, State University of Saint Petersburg, St. Petersburg, Russia.

International Journal of Energy Economics and Policy, 2016, vol. 6, issue 3, 463-470

Abstract: This article tries to explore the long-run nexus between oil consumption, gross domestic product (GDP) and carbon dioxide (CO2) emissions in the next eleven (N-11) countries over the period 1980-2013, by using the panel c-ointegration, the panel dynamic ordinary least squares (DOLS) and the panel fully modified ordinary least squares (FMOLS) approaches.The empirical findings indicate that there is a bidirectional long-run linkage between oil consumption - GDP per capita and oil consumption - CO2 emissions. Moreover the inverted U-shaped linkage between the square of GDP per capita and CO2 emissions, supports the existence of environmental kuznets curve hypothesis. With estimations through the panel DOLS and FMOLS, the long-run elasticity of oil consumption per capita to CO2 emissions per capita is calculated about 0.96% and positive which is in contrast to the coefficient sign of its elasticity to GDP per capita (-0.48%). Moreover, the elasticity of GDP per capita and CO2 emissions per capita to oil consumption per capita are -0.32% and 0.94%, respectively. These findings prove the negative contribution of non-renewable energy (oil) consumption per capita to GDP per capita in the N-11 group. Furthermore, due to the bidirectional long-run relationships between oil consumption and CO2 emissions, these 11 countries should find the efficient energy policies which are in line with CO2 mitigation and reaching a higher GDP per capita growth.

Keywords: Oil Consumption Per Capita; Gross Domestic Product Per Capita; Carbon Dioxide; Emissions Per Capita (search for similar items in EconPapers)
JEL-codes: E21 Q54 Q56 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2016-03-11

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