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Stochastic convergence of per capita carbon dioxide emissions and multiple structural breaks in OECD countries

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  • Lee, Chien-Chiang
  • Chang, Chun-Ping

Abstract

This research applies an innovative panel data stationarity testing procedure developed by Carrion-i-Silvestre et al. [Carrion-i-Silvestre, J.L., Barrio-Castro, T.D. and Lopez-Bazo, E., 2005. Breaking the panels: An application to the GDP per capita, Econometrics Journal 8, 159-175.], which has the advantage of recognizing multiple structural breaks and the presence of cross-section dependence in order to re-investigate the hypothesis that per capita carbon dioxide (CO2) emissions stochastically converge for 21 OECD countries from 1950 to 2002. Remarkably, the evidence clearly indicates that the panel dataset of relative per capita CO2 emissions is stationary after the structural breaks and cross-sectional dependence are introduced into the model. These findings offer strong policy implications for governments, regardless of whether they are in "convergent group" or "divergent group" countries. We also find that the structural breaks in the 1960s and over the 1970-1982 period are associated with time periods of fossil fuel becoming the main source of productivity, higher oil prices, and the development of nuclear power.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 26 (2009)
Issue (Month): 6 (November)
Pages: 1375-1381

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Handle: RePEc:eee:ecmode:v:26:y:2009:i:6:p:1375-1381

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Web page: http://www.elsevier.com/locate/inca/30411

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Keywords: Per capita CO2 emissions Stochastic convergence Multiple structural breaks Panel data stationarity test OECD countries;

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References

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Citations

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Cited by:
  1. Li, Xuehui & Lin, Boqiang, 2013. "Global convergence in per capita CO2 emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 24(C), pages 357-363.
  2. Maria Christidou & Theodore Panagiotidis & Abhijit Sharma, 2013. "On the Stationarity of per Capita Carbon Dioxide Emissions over a Century," Working Paper Series 48_13, The Rimini Centre for Economic Analysis.
  3. Mariam Camarero & Juana Castillo & Andrés J. Picazo-Tadeo & Cecilio Tamarit, 2011. "Eco-efficiency and convergence in OECD countries," Working Papers 1116, Department of Applied Economics II, Universidad de Valencia.
  4. Nilgun Yavuz & Veli Yilanci, 2013. "Convergence in Per Capita Carbon Dioxide Emissions Among G7 Countries: A TAR Panel Unit Root Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 54(2), pages 283-291, February.
  5. Chang, Chun Ping & Berdiev, Aziz N., 2011. "The political economy of energy regulation in OECD countries," Energy Economics, Elsevier, vol. 33(5), pages 816-825, September.
  6. Lin, Boqiang & Li, Xuehui, 2011. "The effect of carbon tax on per capita CO2 emissions," Energy Policy, Elsevier, vol. 39(9), pages 5137-5146, September.

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