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CO emissions in Australia: economic and non-economic drivers in the long-run

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  • Muhammad Shahbaz
  • Mita Bhattacharya
  • Khalid Ahmed

Abstract

Australia has sustained a relatively high economic growth rate since the 1980s compared to other developed countries. Per capita CO2 emissions tend to be highest amongst OECD countries, creating new challenges to cut back emissions towards international standards. This research explores the long-run dynamics of CO2 emissions, economic and population growth along with the effects of globalization tested as contributing factors. We find economic growth is not emission-intensive in Australia, while energy consumption is emissions intensive. Second, in an environment of increasing population, our findings suggest Australia needs to be energy efficient at the household level, creating appropriate infrastructure for sustainable population growth. High population growth and open migration policy can be detrimental in reducing CO2 emissions. Finally, we establish globalized environment has been conducive in combating emissions. In this respect, we establish the beneficial effect of economic globalization compared to social and political dimensions of globalization in curbing emissions.

Suggested Citation

  • Muhammad Shahbaz & Mita Bhattacharya & Khalid Ahmed, 2017. "CO emissions in Australia: economic and non-economic drivers in the long-run," Applied Economics, Taylor & Francis Journals, vol. 49(13), pages 1273-1286, March.
  • Handle: RePEc:taf:applec:v:49:y:2017:i:13:p:1273-1286
    DOI: 10.1080/00036846.2016.1217306
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    File URL: http://hdl.handle.net/10.1080/00036846.2016.1217306
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    Cited by:

    1. Shahbaz, Muhammad & Shahzad, Syed Jawad Hussain & Kumar, Mantu, 2017. "Is Globalization Detrimental to CO2 Emissions in Japan? New Threshold Analysis," MPRA Paper 82413, University Library of Munich, Germany, revised 03 Nov 2017.

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