 The relationship among CO2 emissions, electricity power consumption and GDP in OECD countriesGiovanni Bella (), Carla Massidda and Paolo Mattana Journal of Policy Modeling, 2014, vol. 36, issue 6, 970-985 Abstract: This paper proposes a panel vector error correction model investigation of a quadratic relationship linking CO2 emissions, GDP levels and electric power consumption. We find that two independent long-run relationships emerge from the data. Since the null of homogeneity across units with regard to long-run elasticities is strongly rejected, we proceed by clustering countries according to the signs of the estimated coefficients. The approach allows us to form three groups: in the first there is evidence of an optimistic scenario, where both CO2 emissions and electric power consumption are bound to decrease in the long-run. An optimistic scenario for emissions reduction is also provided in the second cluster where, however, the long-run relationship between income and electric power consumption shows an U-shaped pattern, instead. Finally, the third cluster can be associated with a much worrying scenario where per capita CO2 is expected to grow with income. A joint consideration of long-run parameters and causality links allows us to propose cluster-tailored policy suggestions. Keywords: Panel analysis; Environmental Kuznets Curve; CO2 emissions; Energy consumption (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:36:y:2014:i:6:p:970-985 DOI: 10.1016/j.jpolmod.2014.08.006 Access Statistics for this article Journal of Policy Modeling is currently edited by A. M. Costa More articles in Journal of Policy Modeling from Elsevier |
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