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A note on CO2 emissions using two new tests

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Listed:
  • Peter Sephton

    (Queen’s University)

  • Tolga Omay

    (Atılım University)

Abstract

Recent research suggests that policies implementing structural change are required to alter the paths of carbon dioxide emissions in many nations. This note provides additional support for this view, allowing for smooth shifts in the deterministic part of the stochastic process. A Fourier wavelet unit root test indicates that in many countries, a temporary shock to emissions will have a permanent impact, whereas tests that examine fractional integration around a smooth break with de-trending indicate that a shock to emissions will have a transitory impact. Policies that induce structural changes are required to place emissions on a downward path.

Suggested Citation

  • Peter Sephton & Tolga Omay, 2023. "A note on CO2 emissions using two new tests," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(4), pages 933-941, November.
    • Handle: RePEc:kap:empiri:v:50:y:2023:i:4:d:10.1007_s10663-023-09584-x
    DOI: 10.1007/s10663-023-09584-x
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    References listed on IDEAS

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