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R&D intensity and carbon emissions in the G7: 1870–2014

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  • Awaworyi Churchill, Sefa
  • Inekwe, John
  • Smyth, Russell
  • Zhang, Xibin

Abstract

We examine the effect of research and development (R&D) intensity on carbon dioxide (CO2) emissions in the Group of Seven (G7) countries since the nineteenth century using a non-parametric panel data model. Our estimates suggest that the relationship between R&D and CO2 emissions is time-varying. The estimated time-varying coefficient function of R&D was negative for three quarters of the period studied, but was positive for a 35-year period (1955–1990) during the second half of the twentieth century. Our non-parametric local linear estimates show that the common trend functions gradually increased for the first 110 years (1870–1980), but then flattened out and showed a slight decrease for the next three decades.

Suggested Citation

  • Awaworyi Churchill, Sefa & Inekwe, John & Smyth, Russell & Zhang, Xibin, 2019. "R&D intensity and carbon emissions in the G7: 1870–2014," Energy Economics, Elsevier, vol. 80(C), pages 30-37.
    • Handle: RePEc:eee:eneeco:v:80:y:2019:i:c:p:30-37
    DOI: 10.1016/j.eneco.2018.12.020
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    More about this item

    Keywords

    Carbon emissions; CO2; Non-parametric model; Research and development;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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