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The effect of Rio Convention and other structural breaks on long-run economic development-CO2 relationships

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  • Massimiliano Mazzanti

    (SEEDS)

  • Antonio Musolesi

    (SEEDS)

Abstract

This paper assesses the effect of the 1992 United Nations Rio Convention on Environment and Development and other unknown structural time breaks on the long-run carbon dioxide—economic development relationship for different groups of advanced countries. By taking into account the possible size distortion of standard unit roots tests and allowing nonlinearities in the trend function, we provide evidence suggesting that the time-series are nonlinear trend stationary. From this result, we then develop our analysis without moving to cointegration or first-differencing, and using an interrupted time-series approach, we identify three patterns in the dynamics of carbon dioxide: one is market-led, one is market- and policy-led, and one is more development-oriented.

Suggested Citation

  • Massimiliano Mazzanti & Antonio Musolesi, 2017. "The effect of Rio Convention and other structural breaks on long-run economic development-CO2 relationships," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 389-405, December.
    • Handle: RePEc:spr:epolit:v:34:y:2017:i:3:d:10.1007_s40888-017-0069-z
    DOI: 10.1007/s40888-017-0069-z
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    References listed on IDEAS

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    3. Ming-Chieh Wang & Chang-Sheng Wang, 2018. "Tourism, the environment, and energy policies," Tourism Economics, , vol. 24(7), pages 821-838, November.
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    More about this item

    Keywords

    Carbon Kuznets curves; UN Rio convention; Policy events; Oil shocks; Intervention analysis; Structural breaks;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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