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Determinants of CO2 Emissions in Developing Countries using Bayesian Econometric Approach

Alireza Tamizi ()
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Alireza Tamizi: Assistant Professor of Economics, Payam Noor University

Quarterly Journal of Applied Theories of Economics, 2016, vol. 2, issue 4, pages 145-168

Abstract: The attention to sustainable development and the necessity of environmental protection, and also the adverse effects of environmental pollution on development and quality of life all over the world, have made the environmental protection a major concern of economic officials. For this reason, over the recent decades an extensive literature has been devoted to improve environmental quality and its determinants. Therefore, economic analysts have focused on these issues more than before. In this regard, to know the effects of air pollution determinants can contribute economic officials to reduce pollution. This study attempted to investigate the effects of some variables on CO2 (as one of the most important air pollution indicators) in developing countries during 1992-2014 using Bayesian econometrics approach and applying Bayesian Model Averaging (BMA). Finally, according to the theoretical and empirical evidence, it is found that Environmental Kuznets’ hypothesized inverted U-shaped relationship between economic growth and environmental quality is supported by data. The findings of the study also showed that energy consumption, electricity consumption, and the variables related to industrialization have positive and almost important relationship with CO2 emissions. Against, literacy rate and income inequality have negative effects on CO2 emissions.

Keywords: Pollution; Fossil Energy; Renewable Energy; Environmental Kuznets Curve; Least Absolute Deviation Error (search for similar items in EconPapers)
JEL-codes: B22 C11 O44 (search for similar items in EconPapers)
Date: 2016
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