Economics at your fingertips  

Testing for Convergence in Carbon Dioxide Emissions Using a Bayesian Robust Structural Model

Octavio Fernández-Amador (), Doris Oberdabernig and Patrick Tomberger ()
Additional contact information
Patrick Tomberger: University of Bern

Environmental & Resource Economics, 2019, vol. 73, issue 4, No 13, 1265-1286

Abstract: Abstract We address international convergence in carbon dioxide emissions per capita and per value added derived from emission inventories based on production and consumption patterns. We propose a Bayesian structural model that accounts for heteroscedasticity and endogeneity between emissions and economic growth, and tests for the existence of group-specific convergence via shrinkage priors. We find evidence for country-specific conditional convergence in all emission inventories, implying a half-life of 2.7–3.1 years for production-based emissions and 3.6–4.7 years for consumption-based emissions. When testing for global convergence without allowing for individual-specific convergence paths, the half-life of $$\hbox {CO}_2$$CO2 per capita increases to 15–26 years, whereas emission intensities show a half-life of 44–45 years. Our results highlight the current incompatibility between emission targets and economic growth and the need for faster diffusion of green technologies. Moreover, there is no evidence for specific convergence dynamics in the European Union, the OECD, or the countries that are subject to binding emission constraints specified in the Kyoto Protocol. The institutional frameworks implemented in industrialized countries did not induce faster convergence among developed economies.

Keywords: $$\hbox {CO}_2$$ CO 2 emissions; Production-based inventories; Carbon footprint; Convergence test; Half-life (search for similar items in EconPapers)
JEL-codes: F18 F64 O44 Q54 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Testing for Convergence in Carbon Dioxide Emissions using a Bayesian Robust Structural Model (2017) Downloads
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:

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-018-0298-9

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2020-05-27
Handle: RePEc:kap:enreec:v:73:y:2019:i:4:d:10.1007_s10640-018-0298-9