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Impact of Kyoto Protocol on Carbon Emissions: An Application of Panel Unit Root Tests with Structural Breaks

Author

Listed:
  • Mert, Mehmet

    (Akdeniz University)

  • Çağlar, Abdullah Emre

    (Akdeniz University)

Abstract

Carbon emissions have contiunued to increase globally, in despite of joint efforts to implement international agreements such as Kyoto protocol since 1997. The main subject of the current study is to investigate significant or insignificant structural breaks on carbon emission series of the Kyoto countries. The data periyod of the study is between 1960 and 2013 for 26 Kyoto countries. First of all, the first generation panel unit root tests have been performed and carbon emissions have been found as nonstationary. Then, cross-sectional dependency have been tested and Kyoto panel has been stated as cross-sectional dependent. So, panel unit root tests with structural breaks under cross-sectional dependency has been performed. Unlike the results of the first generation panel unit root tests, stationary process has been revealed. Beside this, in 19 of 26 Kyoto countries, the structural breaks between 1997-2005 have been observed as Kyoto protocol affects. As a result of the study, significant structural breaks in Kyoto panel have been stated and the impact of the Kyoto protocol on carbon emission series for the Kyoto countries is significant.

Suggested Citation

  • Mert, Mehmet & Çağlar, Abdullah Emre, 2017. "Impact of Kyoto Protocol on Carbon Emissions: An Application of Panel Unit Root Tests with Structural Breaks," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 8(4), pages 661-672, October.
    • Handle: RePEc:ris:buecrj:0294
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    More about this item

    Keywords

    Kyoto Protocol; Carbon Emissions; Panel Unit Root; Structural Breaks; Cross-Sectioanal Dependence;
    All these keywords.

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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