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Sectoral analysis of club convergence in EU countries’ CO2 emissions

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  • Cialani, Catia
  • Mortazavi, Reza

Abstract

This paper examines convergence clubs for per capita CO2 emissions among 28 European countries in two main activity sectors (Industry and Manufacturing) between 1970 and 2018, with a focus on the energy sector. The method used is the Phillips-Sul log t-test using two ordering criteria to run the algorithm for the panel countries. The first one is using the last observation and the second one uses the sample average. The results of analyses of data strongly support the existence of convergence clubs, indicating that five groups of European countries are converging to distinct steady states for the aggregate CO2 emissions. We also find evidence of convergence clubs for industry sectors while manufacturing sector shows clubs convergence only when we use the first criterion while in the second case, we find only a single steady state.

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  • Cialani, Catia & Mortazavi, Reza, 2021. "Sectoral analysis of club convergence in EU countries’ CO2 emissions," Energy, Elsevier, vol. 235(C).
    • Handle: RePEc:eee:energy:v:235:y:2021:i:c:s0360544221015802
    DOI: 10.1016/j.energy.2021.121332
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    More about this item

    Keywords

    CO2 emissions; Club convergence; EU; Log t-test;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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