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Stochastic convergence behaviour in carbon dioxide emissions: Fourier panel unit root approach

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  • Aygul Anavatan
  • M. Serdar Ispir

Abstract

This study examines the convergence of per capita carbon dioxide emissions using two Fourier-based panel unit root tests allowing for smooth transitions. Additional panel unit root tests without structural breaks and with sharp shifts were conducted for comparison. The analysis spans 68 countries from 1965 to 2019. Results reveal non-stationarity in emissions for low- and middle-income countries, while emissions in high-income countries were stationary under constant and trend components. Evidence indicates limited convergence, with constrained forms observed only in high-income nations. These findings align partially with the Environmental Kuznets Curve hypothesis. This study offers nuanced insights into global carbon dioxide emission dynamics and enriches the empirical discourse on environmental sustainability.

Suggested Citation

  • Aygul Anavatan & M. Serdar Ispir, 2025. "Stochastic convergence behaviour in carbon dioxide emissions: Fourier panel unit root approach," Applied Economics, Taylor & Francis Journals, vol. 57(60), pages 11228-11241, December.
    • Handle: RePEc:taf:applec:v:57:y:2025:i:60:p:11228-11241
    DOI: 10.1080/00036846.2025.2450385
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