Carbon emissions and economic growth: homogeneous causality in heterogeneous panels

David Maddison and Katrin Rehdanz

No 1437, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper introduces the concept of homogeneous non-causality in heterogeneous panels. This concept is used to examine a panel of data for evidence of a causal relationship between GDP and carbon emissions. The technique is compared to the standard test for homogeneous non-causality in homogeneous panels and heterogeneous non-causality in heterogeneous panels. In North America, Asia and Oceania the homogeneous non-causality hypothesis that CO2 emissions does not Granger cause GDP cannot be rejected if heterogeneity is allowed for in the data-generating process. In North America the homogeneous non-causality hypothesis that GDP does not cause CO2 emissions cannot be rejected either.

Keywords: Energy; carbon emissions; granger causality; heterogeneous panels (search for similar items in EconPapers)
JEL-codes: C12 O13 Q54 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Carbon Emissions and Economic Growth: Homogeneous Causality in Heterogeneous Panels (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1437

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