Re-examining Emissions. Is Assessing Convergence Meaningless?

Mariam Camarero, Yurena Mendoza and Javier Ordóñez
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Yurena Mendoza: Departamento de Economía Aplicada II. Universidad de Valencia. Valencia, Spain

No 1104, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: This paper sets out to re-examine CO2 emissions for 22 OECD countries over the period 1870–2006. The aim is to help explain mixed evidence regarding convergence in per capita emissions among countries. The paper revolves around two potential sources of inconclusive findings regarding CO2 emissions convergence: firstly, neglecting the step prior to convergence analysis could mislead researchers as the stationary nature of series negates the possibility of convergence; secondly, the nonlinear dynamics of CO2 have not been considered to date. The empirical evidence provided by our methodological strategy suggests that the original per capita CO2 emissions are non-stationary from 1950 onwards, allowing for further convergence study. By the novelty appeal of using nonlinear methods, we conclude that there is strong evidence of divergence among these 22 OECD countries.

Keywords: CO2 emissions; convergence; non linear test; stationarity; smooth transition (search for similar items in EconPapers)
JEL-codes: C22 Q5 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2011-02
New Economics Papers: this item is included in nep-cis, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eec:wpaper:1104

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