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Are per capita carbon dioxide emissions converging among industrialized countries? New time series evidence with structural breaks

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  • CHANG, CHUN-PING
  • LEE, CHIEN-CHIANG

Abstract

This paper examines whether the stochastic convergence hypothesis of per capita carbon dioxide (CO 2 ) emissions is supported in countries with the same level of development – that is, are shocks to relative per capita CO 2 emissions temporary in industrialized countries? We respond to this question by utilizing the recently developed Lagrange Multiplier (LM) unit root test that endogenously determines structural breaks in level and trend as proposed by Lee and Strazicich (2003, 2004). Our empirical findings provide significant evidence that relative per capita CO 2 emissions for 21 OECD countries stochastically converge when we control for breaks in the period 1960–2000. Structural breaks are identified in each country, and overall we find that most breakpoints occur around the two energy crises and in the 1990s. The robust test clearly also indicates that most original per capita CO 2 emissions and average series are stationary.

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  • Chang, Chun-Ping & Lee, Chien-Chiang, 2008. "Are per capita carbon dioxide emissions converging among industrialized countries? New time series evidence with structural breaks," Environment and Development Economics, Cambridge University Press, vol. 13(04), pages 497-515, August.
  • Handle: RePEc:cup:endeec:v:13:y:2008:i:04:p:497-515_00
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    Cited by:

    1. Lee, Chien-Chiang & Lee, Jun-De, 2009. "Income and CO2 emissions: Evidence from panel unit root and cointegration tests," Energy Policy, Elsevier, vol. 37(2), pages 413-423, February.
    2. Le Pen, Yannick & Sévi, Benoît, 2010. "On the non-convergence of energy intensities: Evidence from a pair-wise econometric approach," Ecological Economics, Elsevier, vol. 69(3), pages 641-650, January.
    3. repec:dau:papers:123456789/6801 is not listed on IDEAS
    4. Nilgun Yavuz & Veli Yilanci, 2013. "Convergence in Per Capita Carbon Dioxide Emissions Among G7 Countries: A TAR Panel Unit Root Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(2), pages 283-291, February.
    5. repec:spr:envpol:v:20:y:2018:i:1:d:10.1007_s10018-017-0189-2 is not listed on IDEAS
    6. Li, Xiao-Lin & Tang, D.P. & Chang, Tsangyao, 2014. "CO2 emissions converge in the 50 U.S. states — Sequential panel selection method," Economic Modelling, Elsevier, vol. 40(C), pages 320-333.
    7. Carlos Barros & Luis Gil-Alana & Fernando Perez de Gracia, 2016. "Stationarity and Long Range Dependence of Carbon Dioxide Emissions: Evidence for Disaggregated Data," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(1), pages 45-56, January.
    8. repec:eee:rensus:v:75:y:2017:i:c:p:86-97 is not listed on IDEAS
    9. Barra, Cristian & Zotti, Roberto, 2016. "Investigating the impact of national income on environmental pollution. International evidence," MPRA Paper 74149, University Library of Munich, Germany.
    10. Lee, Chien-Chiang & Chang, Chun-Ping, 2009. "Stochastic convergence of per capita carbon dioxide emissions and multiple structural breaks in OECD countries," Economic Modelling, Elsevier, vol. 26(6), pages 1375-1381, November.
    11. Gallo, Andres & Mason, Paul & Shapiro, Steve & Fabritius, Michael, 2010. "What is behind the increase in oil prices? Analyzing oil consumption and supply relationship with oil price," Energy, Elsevier, vol. 35(10), pages 4126-4141.
    12. repec:eee:eneeco:v:63:y:2017:i:c:p:365-372 is not listed on IDEAS

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