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Evolution of the Global Distribution of Carbon Dioxide: A Finite Mixture Analysis

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Author Info

  • Michele Battisti

    (Department of Law, Politics and Society, University of Palermo)

  • Michael S. Delgado

    (Department of Agricultural Economics, Purdue University)

  • Christopher F. Parmeter

    (Department of Economics, University of Miami)

Abstract

Economists and environmental policymakers have recently begun advocating a bottom-up approach to climate change mitigation, focusing on reduction targets for groups of nations, rather than large scale global policies. We advance this discussion by taking a quantitative perspective, focusing on econometric identification of groups of countries that have statistically similar distributions of carbon emissions using a broad range of finite mixture models. Nearly all of our results yield a consistent pattern: after 1980, there are two distinct emissions distributions, and that these distributions continue to evolve over time. We provide a rigorous analysis of these distributional differences along several important dimensions: polarization, mobility, and volatility. We discuss how this robust quantitative evidence may aid policymakers in forging a heterogeneous carbon abatement policy.

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File URL: http://bus.miami.edu/_assets/files/repec/WP2103-10.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by University of Miami, Department of Economics in its series Working Papers with number 2013-10.

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Length: 39 pages
Date of creation: 08 May 2013
Date of revision:
Publication status: Forthcoming (Under Review)
Handle: RePEc:mia:wpaper:2013-10

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Web page: http://www.bus.miami.edu/faculty-and-research/academic-departments/economics/index.html
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Related research

Keywords: Carbon emissions; Emissions groups; Heterogeneity; Abatement policy; Finite mixture models;

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  7. Duro, Juan Antonio & Padilla, Emilio, 2008. "Analysis of the international distribution of per capita CO2 emissions using the polarization concept," Energy Policy, Elsevier, vol. 36(1), pages 456-466, January.
  8. Aldy, Joseph, 2005. "Per Capita Carbon Dioxide Emissions: Convergence or Divergence?," Discussion Papers dp-05-53, Resources For the Future.
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  13. Matthew McGinty, 2007. "International environmental agreements among asymmetric nations," Oxford Economic Papers, Oxford University Press, vol. 59(1), pages 45-62, January.
  14. Battisti, Michele & Parmeter, Christopher F., 2013. "Clustering and polarization in the distribution of output: A multivariate perspective," Journal of Macroeconomics, Elsevier, vol. 35(C), pages 144-162.
  15. Paapaa, Richard & van Dijk, Herman K., 1998. "Distribution and mobility of wealth of nations," European Economic Review, Elsevier, vol. 42(7), pages 1269-1293, July.
  16. Juan Antonio Duro & Emilio Padilla, 2011. "Cross-country polarisation in CO2 emissions per capita in the European Union: changes and explanatory factors," Working Papers wpdea1106, Department of Applied Economics at Universitat Autonoma of Barcelona.
  17. Kruger, Joseph & Oates, Wallace E. & Pizer, William A., 2007. "Decentralization in the EU Emissions Trading Scheme and Lessons for Global Policy," Discussion Papers dp-07-02, Resources For the Future.
  18. Efthymios Tsionas, 2000. "Regional Growth and Convergence: Evidence from the United States," Regional Studies, Taylor & Francis Journals, vol. 34(3), pages 231-238.
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  20. Battisti, Michele & Parmeter, Christopher F., 2012. "GDP clustering: A reappraisal," Economics Letters, Elsevier, vol. 117(3), pages 837-840.
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