CO2 Emissions and Economic Activity: heterogeneity across countries and non stationary series

Matías Piaggio and Emilio Padilla Rosa

Working Papers from Department of Applied Economics at Universitat Autonoma of Barcelona

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: 44 pages
Date: 2010-12
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://ecap.uab.cat/RePEc/doc/wpdea1009.pdf (application/pdf)

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)
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: https://EconPapers.repec.org/RePEc:uab:wprdea:wpdea1009

Access Statistics for this paper

More papers in Working Papers from Department of Applied Economics at Universitat Autonoma of Barcelona Contact information at EDIRC.
Bibliographic data for series maintained by Dept. Economia Aplicada ().