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Asymmetric responses of CO2 emissions to oil price shocks in China: a non-linear ARDL approach

Author

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  • Taha Zaghdoudi

    (Faculty of Law, Economics and Management of Jendouba, Tunisia)

Abstract

This paper investigates the asymmetric effects of oil price shocks on CO2 emissions in China using a nonlinear autoregressive distributed lags (NARDL) model. By performing the bounds test of the NARDL specification, we found a strong evidence of cointegration among variables, which include CO2 emissions, oil price, and economic growth. Results reveal the existence of nonlinear effects of oil price on CO2 emissions. Findings indicate also that oil price increases and decreases have significant short and long-run effects on CO2 emissions. This paper supports the view that in the long-run an oil price increase, raises CO2 emissions more rapidly than its decline in China.

Suggested Citation

  • Taha Zaghdoudi, 2018. "Asymmetric responses of CO2 emissions to oil price shocks in China: a non-linear ARDL approach," Economics Bulletin, AccessEcon, vol. 38(3), pages 1485-1493.
    • Handle: RePEc:ebl:ecbull:eb-18-00274
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    References listed on IDEAS

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    Cited by:

    1. Elvis Dze Achuo, 2022. "The nexus between crude oil price shocks and environmental quality: empirical evidence from sub-Saharan Africa," SN Business & Economics, Springer, vol. 2(7), pages 1-15, July.

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    More about this item

    Keywords

    CO2 emissions; Oil price; economic growth; NARDL ; China;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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