The relationship between CO2 emissions and economic growth: The case of Korea with nonlinear evidence
AbstractUsing STAR models, we investigate the nonlinear dynamic properties and the interdependence of CO2 emissions and economic growth for Korea. The estimation results indicate that the growth rate of both CO2 emissions and industrial production exhibit a significant nonlinear asymmetric dynamics. While the linear Granger causality test finds no causality in any direction, the results of the nonlinear Granger causality tests show a two-way causality between CO2 emissions and economic growth. The strong mutual causation between CO2 emissions and economic activities indicates that the economic impact from CO2 mitigation is expected to be higher in Korea. This suggests that the appropriate energy and environmental policy be to mitigate CO2 emissions while having less impact on the economy.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 38 (2010)
Issue (Month): 10 (October)
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Web page: http://www.elsevier.com/locate/enpol
CO2 emissions Economic growth STAR model;
Find related papers by JEL classification:
- CO2 - Mathematical and Quantitative Methods - - - - -
- emi - - - - - -
- Eco - Macroeconomics and Monetary Economics - - - - -
- gro - - - - - -
- STA - - - - - -
- mod - - - - - -
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- Fujii, Hidemichi & Managi, Shunsuke, 2013. "Which industry is greener? An empirical study of nine industries in OECD countries," Energy Policy, Elsevier, vol. 57(C), pages 381-388.
- Chung, Yeimin & Heshmati, Almas, 2013. "Measurement of Environmentally Sensitive Productivity Growth in Korean Industries," IZA Discussion Papers 7235, Institute for the Study of Labor (IZA).
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- Fujii, Hidemichi & Managi, Shunsuke, 2012. "Which Industry is Greener? Empirical Study for Nine Industries in OECD Countries," MPRA Paper 44229, University Library of Munich, Germany.
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