Economics at your fingertips  

Exploring the Macroeconomic Determinants of Carbon Emissions in Transitional Economies: A Panel Data Analysis Approach

Kunofiwa Tsaurai
Additional contact information
Kunofiwa Tsaurai: Department of Finance, Risk Managment and Banking, University of South Africa, South Africa

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 6, 536-544

Abstract: The study’s main objective was to investigate the macroeconomic determinants of carbon emissions in transitional economies using panel methods with data ranging from 1996 to 2014. The main data analysis was done using econometric estimation methods such as fixed effects, random effects, pooled ordinary least squares (OLS) and the dynamic generalized methods of moments (GMM) approach whilst robustness tests were done under the umbrella term, the lagged independent variable approach. To a larger extent, infrastructural development, economic growth, trade openness, financial development and natural resources were found to have had a significant positive effect on carbon emissions, in line with major theoretical predictions. On the other hand, renewable energy consumption, foreign direct investment, information and communication technology and human capital development were mainly found to have reduced carbon emissions in transitional economies. The results are firmly supported by literature. Transitional economies are therefore urged to increase their use of renewable energy and information and communication technology (ICT) infrastructure, attract more foreign direct investment (FDI) and implement policies aimed at enhancing human capital development to reduce carbon emissions. Given data availability, future studies must investigate whether other macroeconomic variables mentioned in the empirical literature that they determine carbon emissions are relevant in transitional economies.

Keywords: Carbon emissions; Transitional Economies; Panel Data (search for similar items in EconPapers)
JEL-codes: P2 P52 B23 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().

Page updated 2021-01-02
Handle: RePEc:eco:journ2:2020-06-69