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Global temperatures and greenhouse gases: A common features approach

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  • Chen, Li
  • Gao, Jiti
  • Vahid, Farshid

Abstract

We propose a common features approach for testing for common trends and estimating long-run relationships between variables with complex trends. Using this approach, we establish that global temperatures and the concentration of greenhouse gases share a common trend and we estimate their long-run relationship without conditioning on the exact nature of this trend.

Suggested Citation

  • Chen, Li & Gao, Jiti & Vahid, Farshid, 2022. "Global temperatures and greenhouse gases: A common features approach," Journal of Econometrics, Elsevier, vol. 230(2), pages 240-254.
    • Handle: RePEc:eee:econom:v:230:y:2022:i:2:p:240-254
    DOI: 10.1016/j.jeconom.2021.04.003
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    Cited by:

    1. C. Vladimir Rodr'iguez-Caballero & Esther Ruiz, 2024. "Temperature in the Iberian Peninsula: Trend, seasonality, and heterogeneity," Papers 2406.14145, arXiv.org.
    2. Liang Chen & Juan J. Dolado & Jesús Gonzalo & Andrey Ramos, 2023. "Heterogeneous predictive association of CO2 with global warming," Economica, London School of Economics and Political Science, vol. 90(360), pages 1397-1421, October.
    3. Gadea Rivas, María Dolores & Ramos, Andrey, 2023. "Trends in temperature data: micro-foundations of their nature," UC3M Working papers. Economics 39045, Universidad Carlos III de Madrid. Departamento de Economía.
    4. Anderson, Heather M. & Gao, Jiti & Turnip, Guido & Vahid, Farshid & Wei, Wei, 2023. "Estimating the effect of an EU-ETS type scheme in Australia using a synthetic treatment approach," Energy Economics, Elsevier, vol. 125(C).
    5. Yu, Deshui & Huang, Difang & Chen, Li, 2023. "Stock return predictability and cyclical movements in valuation ratios," Journal of Empirical Finance, Elsevier, vol. 72(C), pages 36-53.
    6. Yu, Deshui & Huang, Difang & Chen, Li & Li, Luyang, 2023. "Forecasting dividend growth: The role of adjusted earnings yield," Economic Modelling, Elsevier, vol. 120(C).

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    More about this item

    Keywords

    Global warming; Complex trends; Endogeneity; Instrumental variables; Testing for common trends;
    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
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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