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CO emissions in Australia: economic and non-economic drivers in the long-run

Muhammad Shahbaz (), Mita Bhattacharya () and Khalid Ahmed ()

Applied Economics, 2017, vol. 49, issue 13, 1273-1286

Abstract: Australia has sustained a relatively high economic growth rate since the 1980s compared to other developed countries. Per capita CO2 emissions tend to be highest amongst OECD countries, creating new challenges to cut back emissions towards international standards. This research explores the long-run dynamics of CO2 emissions, economic and population growth along with the effects of globalization tested as contributing factors. We find economic growth is not emission-intensive in Australia, while energy consumption is emissions intensive. Second, in an environment of increasing population, our findings suggest Australia needs to be energy efficient at the household level, creating appropriate infrastructure for sustainable population growth. High population growth and open migration policy can be detrimental in reducing CO2 emissions. Finally, we establish globalized environment has been conducive in combating emissions. In this respect, we establish the beneficial effect of economic globalization compared to social and political dimensions of globalization in curbing emissions.

Date: 2017
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DOI: 10.1080/00036846.2016.1217306

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