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Re-examining Emissions. Is Assessing Convergence Meaningless?

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Author Info

  • Mariam Camarero

    (cDepartamento de Economía. Universidad Jaume I. Campus del Riu Sec. Castellón, Spain)

  • Yurena Mendoza

    (Departamento de Economía Aplicada II. Universidad de Valencia. Valencia, Spain)

  • Javier Ordoñez

    (cDepartamento de Economía. Universidad Jaume I. Campus del Riu Sec. Castellón, Spain)

Abstract

This paper sets out to re-examine CO2 emissions for 22 OECD countries over the period 1870–2006. The aim is to help explain mixed evidence regarding convergence in per capita emissions among countries. The paper revolves around two potential sources of inconclusive findings regarding CO2 emissions convergence: firstly, neglecting the step prior to convergence analysis could mislead researchers as the stationary nature of series negates the possibility of convergence; secondly, the nonlinear dynamics of CO2 have not been considered to date. The empirical evidence provided by our methodological strategy suggests that the original per capita CO2 emissions are non-stationary from 1950 onwards, allowing for further convergence study. By the novelty appeal of using nonlinear methods, we conclude that there is strong evidence of divergence among these 22 OECD countries.

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Bibliographic Info

Paper provided by Department of Applied Economics II, Universidad de Valencia in its series Working Papers with number 1104.

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Length: 48 pages
Date of creation: Feb 2011
Date of revision:
Handle: RePEc:eec:wpaper:1104

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Keywords: CO2 emissions; convergence; non linear test; stationarity; smooth transition;

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  1. Vogelsang, T.J. & Perron, P., 1994. "Additional Tests for a Unit Root Allowing for a Break in the Trend Function at an Unknown Time," Cahiers de recherche 9422, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  2. Josep Lluis Carrion Silvestre & Tomas del Barrio Castro & Enrique Lopez Bazo, 2003. "Breaking the panels. An application to the GDP per capita," Working Papers in Economics 97, Universitat de Barcelona. Espai de Recerca en Economia.
  3. Breuer, Janice Boucher & McNown, Robert & Wallace, Myles, 2002. " Series-Specific Unit Root Tests with Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(5), pages 527-46, December.
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