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The Role of Household Saving in the Economic Rise of China

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  • Nelson Mark

    ()
    (Department of Economics, University of Notre Dame)

  • Steven Lugauer

    ()
    (Department of Economics, University of Notre Dame)

  • Clayton Sadler

    ()
    (Department of Economics, University of Notre Dame)

Abstract

We estimate the age distribution's impact on carbon dioxide emissions from 1990 to 2006 by exploiting demographic variation in a panel of 46 countries. To eliminate potential bias from endogeneity or omitted variables, we instrument for the age distribution with lagged birth rates, and the regressions control for total population, output, and country and year fixed effects. The increase in the share of the population aged 35 to 49 accounts for a large portion of the observed increase in carbon dioxide emissions.

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File URL: http://www3.nd.edu/~tjohns20/RePEc/deendus/wpaper/004_emissions.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by University of Notre Dame, Department of Economics in its series Working Papers with number 004.

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Length: 41 pages
Date of creation: Jun 2012
Date of revision: Jun 2012
Handle: RePEc:nod:wpaper:004

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Postal: 434 Flanner Hall, Notre Dame, IN 46556
Phone: (574) 631-7698
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Web page: http://economics.nd.edu
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Keywords: Climate Change; Environment; Carbon Dioxide Emissions;

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  1. Franco Modigliani & Shi Larry Cao, 2004. "The Chinese Saving Puzzle and the Life-Cycle Hypothesis," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 145-170, March.
  2. Carlos D. Ramirez & Rong Rong, 2012. "China Bashing: Does Trade Drive the “Bad” News about China in the USA?," Review of International Economics, Wiley Blackwell, vol. 20(2), pages 350-363, 05.
  3. Steven Lugauer & Nelson Mark, 2010. "Demographic Patterns and Household Saving in China," Working Papers 007, University of Notre Dame, Department of Economics, revised Jun 2012.
  4. Christopher D Carroll, 1990. "Buffer-Stock Saving and the Life Cycle/Permanent Income Hypothesis," Economics Working Paper Archive 371, The Johns Hopkins University,Department of Economics, revised Aug 1996.
  5. Charles Yuji Horioka & Junmin Wan, 2006. "The Determinants of Household Saving in China: A Dynamic Panel Analysis of Provincial Data," NBER Working Papers 12723, National Bureau of Economic Research, Inc.
  6. Wei Dong, 2007. "Expenditure-Switching Effect and the Choice of Exchange Rate Regime," Working Papers 07-54, Bank of Canada.
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