CO2 emissions and economic activity: heterogeneity across countries and non stationary series
Matías Piaggio and
Emilio Padilla
No 01_2010, Documentos de Trabajo de la Asociación de Economía Ecológica en España from Asociación de Economía Ecológica en España
Abstract:
This paper explores the homogeneity of the functional form, the parameters, and the turning point, when appropriate, of the relationship between CO2 emissions and economic activity for 31 countries (28 OECD, Brazil, China, and India) during the period 1950 to 2006 using cointegration analysis. With a sample highly overlapped over time between countries, the result reveals that the homogeneity across countries is rejected, both in functional form and in the parameters of long term relationship. This confirms the relevance of considering the heterogeneity in exploring the relationship between air pollution and economic activity to avoid spurious parameter estimates and infer a wrong behavior of the functional form, which could lead to induce that the relationship is reversed when in fact it is direct.
Keywords: Bound testing; cointegration; CO2 emissions; environmental Kuznets curve; heterogeneity (search for similar items in EconPapers)
JEL-codes: C32 O13 Q53 Q56 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2010-12
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (3)
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Related works:
Journal Article: CO2 emissions and economic activity: Heterogeneity across countries and non-stationary series (2012)
Working Paper: CO2 Emissions and Economic Activity: heterogeneity across countries and non stationary series (2010)
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