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Carbon Emissions and Economic Growth: Homogeneous Causality in Heterogeneous Panels

David Maddison () and Katrin Rehdanz

No FNU-163, Working Papers from Research unit Sustainability and Global Change, Hamburg University

Abstract: This paper introduces the concept of homogeneous non-causality in heterogeneous panels. This concept is used to examine a panel of data for evidence of a causal relationship between GDP and carbon emissions. The technique is compared to the standard test for homogeneous non-causality in homogeneous panels and heterogeneous non-causality in heterogeneous panels. In North America, Asia and Oceania the homogeneous non-causality hypothesis that CO2 emissions does not Granger cause GDP cannot be rejected if heterogeneity is allowed for in the data-generating process. In North America the homogeneous non-causality hypothesis that GDP does not cause CO2 emissions cannot be rejected either.

Keywords: Energy; Carbon Emissions; Granger Causality; Heterogeneous Panels (search for similar items in EconPapers)
JEL-codes: Q54 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2008-07, Revised 2008-07
New Economics Papers: this item is included in nep-ene, nep-env, nep-res and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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