An Empirical Analysis of the Role of China's Exports on CO2 Emissions
China is one of the world’s most rapidly growing countries and the largest consumer of energy in the world. As a result, China’s pollution emissions almost doubled from 2002 to 2007, and in 2006 it surpassed the United States to become the world’s top carbon dioxide emitter. Understanding the sources of emissions is essential towards designing policies aimed at curbing carbon emissions in China. The surge in China’s exports has been partially blamed for this increase in emissions. To understand the sources of emissions, this study uses a vector autoregression model to examine the relationship among exports, CO2 emissions, coal consumption and trade openness in China for the years 1970–2010. The study uses a modified version of Granger Causality developed by Toda and Yamamoto . The main findings within the study indicate: (1) Granger Causality running from exports to emissions; (2) Granger Causality running from coal consumption to exports; and (3) GDP determines future variability in exports and CO2 emissions. Results suggest that governmental policies aimed at controlling coal consumption could affect CO2 emissions and exports. Results from this study should assist in formulating policies to mitigate both CO2 emissions and coal consumption.
(This abstract was borrowed from another version of this item.)
|Date of creation:||May 2012|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jesús Otero & Jeremy Smith, 2005.
"The KPSS Test with Outliers,"
Springer;Society for Computational Economics, vol. 26(3), pages 59-67, November.
- Otero, Jesus & Smith, Jeremy, 2003. "The KPSS Test with Outliers," The Warwick Economics Research Paper Series (TWERPS) 690, University of Warwick, Department of Economics.
- ZhiDong, Li, 2003. "An econometric study on China's economy, energy and environment to the year 2030," Energy Policy, Elsevier, vol. 31(11), pages 1137-1150, September.
- Chung, Whan-Sam & Tohno, Susumu & Choi, Ki-Hong, 2011. "Socio-technological impact analysis using an energy IO approach to GHG emissions issues in South Korea," Applied Energy, Elsevier, vol. 88(11), pages 3747-3758.
- Zapata, Hector O & Rambaldi, Alicia N, 1997.
"Monte Carlo Evidence on Cointegration and Causation,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 59(2), pages 285-298, May.
- Zapata, Hector O. & Rambaldi, Alicia N., 1996. "Monte Carlo Evidence On Cointegration And Causation," Staff Papers 31690, Louisiana State University, Department of Agricultural Economics and Agribusiness.
- Cole, Matthew A., 2004. "Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages," Ecological Economics, Elsevier, vol. 48(1), pages 71-81, January.
- Eskeland, Gunnar S. & Harrison, Ann E., 2003.
"Moving to greener pastures? Multinationals and the pollution haven hypothesis,"
Journal of Development Economics,
Elsevier, vol. 70(1), pages 1-23, February.
- Eskeland, Gunnar S.*Harrison, Ann E., 1997. "Moving to greener pastures : multinationals and the pollution-haven hypothesis," Policy Research Working Paper Series 1744, The World Bank.
- Gunnar A. Eskeland & Ann E. Harrison, 2002. "Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis," NBER Working Papers 8888, National Bureau of Economic Research, Inc.
- Hooi Hooi Lean & Russell Smyth, 2010.
"Multivariate Granger causality between electricity generation, exports, prices and GDP in Malaysia,"
Monash Economics Working Papers
archive-43, Monash University, Department of Economics.
- Lean, Hooi Hooi & Smyth, Russell, 2010. "Multivariate Granger causality between electricity generation, exports, prices and GDP in Malaysia," Energy, Elsevier, vol. 35(9), pages 3640-3648.
- Ravallion, Martin & Heil, Mark & Jalan, Jyotsna, 2000. "Carbon Emissions and Income Inequality," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 651-669, October.
- Halicioglu, Ferda, 2008.
"An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey,"
11457, University Library of Munich, Germany.
- Halicioglu, Ferda, 2009. "An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey," Energy Policy, Elsevier, vol. 37(3), pages 1156-1164, March.
- Koop, Gary & Pesaran, M. Hashem & Potter, Simon M., 1996. "Impulse response analysis in nonlinear multivariate models," Journal of Econometrics, Elsevier, vol. 74(1), pages 119-147, September.
- Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
- Perron, P, 1988.
"The Great Crash, The Oil Price Shock And The Unit Root Hypothesis,"
338, Princeton, Department of Economics - Econometric Research Program.
- Perron, Pierre, 1989. "The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis," Econometrica, Econometric Society, vol. 57(6), pages 1361-1401, November.
- Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992.
"Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?,"
Journal of Econometrics,
Elsevier, vol. 54(1-3), pages 159-178.
- Denis Kwiatkowski & Peter C.B. Phillips & Peter Schmidt, 1991. "Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure Are We That Economic Time Series Have a Unit Root?," Cowles Foundation Discussion Papers 979, Cowles Foundation for Research in Economics, Yale University.
- Kwiatkowski, D. & Phillips, P.C.B. & Schmidt, P., 1990. "Testing the Null Hypothesis of Stationarity Against the Alternative of Unit Root : How Sure are we that Economic Time Series have a Unit Root?," Papers 8905, Michigan State - Econometrics and Economic Theory.
- Jiahua Pan & Jonathan Phillips & Ying Chen, 2008. "China's balance of emissions embodied in trade: approaches to measurement and allocating international responsibility," Oxford Review of Economic Policy, Oxford University Press, vol. 24(2), pages 354-376, Summer.
- Choi, Yongrok & Zhang, Ning & Zhou, P., 2012. "Efficiency and abatement costs of energy-related CO2 emissions in China: A slacks-based efficiency measure," Applied Energy, Elsevier, vol. 98(C), pages 198-208.
- Xiaming Liu & Haiyan Song & Peter Romilly, 1997. "An empirical investigation of the causal relationship between openness and economic growth in China," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1679-1686.
- Adams, F. Gerard & Shachmurove, Yochanan, 2008. "Modeling and forecasting energy consumption in China: Implications for Chinese energy demand and imports in 2020," Energy Economics, Elsevier, vol. 30(3), pages 1263-1278, May.
- Ou, Xunmin & Zhang, Xiliang & Chang, Shiyan & Guo, Qingfang, 2009. "Energy consumption and GHG emissions of six biofuel pathways by LCA in (the) People's Republic of China," Applied Energy, Elsevier, vol. 86(Supplemen), pages 197-208, November.
- Zhou, Zhongren & Wu, Wenliang & Wang, Xiaohua & Chen, Qun & Wang, Ou, 2009. "Analysis of changes in the structure of rural household energy consumption in northern China: A case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(1), pages 187-193, January.
- Fang, Jinghua & Zeng, Taofang & Yang, Lynn I. Shen & Oye, Kenneth A. & Sarofim, Adel F. & Beér, János M., 1999. "Coal utilization in industrial boilers in China --a prospect for mitigating CO2 emissions," Applied Energy, Elsevier, vol. 63(1), pages 35-52, May.
- Nelson, Charles R. & Plosser, Charles I., 1982. "Trends and random walks in macroeconmic time series : Some evidence and implications," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 139-162.
- Hengyun Ma & Les Oxley, 2009.
"China’s Energy Economy: A Survey of the Literature,"
Working Papers in Economics
09/02, University of Canterbury, Department of Economics and Finance.
- Ma, Hengyun & Oxley, Les & Gibson, John, 2010. "China's energy economy: A survey of the literature," Economic Systems, Elsevier, vol. 34(2), pages 105-132, June.
- Liang, Xi & Reiner, David & Li, Jia, 2011. "Perceptions of opinion leaders towards CCS demonstration projects in China," Applied Energy, Elsevier, vol. 88(5), pages 1873-1885, May.
- Sinton, Jonathan E., 2001. "Accuracy and reliability of China's energy statistics," China Economic Review, Elsevier, vol. 12(4), pages 373-383.
- Jang C. Jin, 2004. "On the Relationship Between Openness and Growth in China: Evidence from Provincial Time Series Data," The World Economy, Wiley Blackwell, vol. 27(10), pages 1571-1582, November.
- Shiu, Alice & Lam, Pun-Lee, 2004. "Electricity consumption and economic growth in China," Energy Policy, Elsevier, vol. 32(1), pages 47-54, January.
- Hu, Zhiyuan & Fang, Fang & Ben, DaoFeng & Pu, Gengqiang & Wang, Chengtao, 2004. "Net energy, CO2 emission, and life-cycle cost assessment of cassava-based ethanol as an alternative automotive fuel in China," Applied Energy, Elsevier, vol. 78(3), pages 247-256, July.
- Richard Schmalensee & Thomas M. Stoker & Ruth A. Judson, 1998. "World Carbon Dioxide Emissions: 1950-2050," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 15-27, February.
- Wolde-Rufael, Yemane, 2010. "Coal consumption and economic growth revisited," Applied Energy, Elsevier, vol. 87(1), pages 160-167, January.
- Shui, Bin & Harriss, Robert C., 2006. "The role of CO2 embodiment in US-China trade," Energy Policy, Elsevier, vol. 34(18), pages 4063-4068, December.
- Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
- Weber, Christopher L. & Peters, Glen P. & Guan, Dabo & Hubacek, Klaus, 2008. "The contribution of Chinese exports to climate change," Energy Policy, Elsevier, vol. 36(9), pages 3572-3577, September.
- Yunfeng, Yan & Laike, Yang, 2010. "China's foreign trade and climate change: A case study of CO2 emissions," Energy Policy, Elsevier, vol. 38(1), pages 350-356, January.
- Janesh Sami, 2011. "Multivariate Cointegration and Causality between Exports, Electricity Consumption and Real Income per Capita: Recent Evidence from Japan," International Journal of Energy Economics and Policy, Econjournals, vol. 1(3), pages 59-68, November.
- Caporale, Guglielmo Maria & Pittis, Nikitas, 1999. " Efficient Estimation of Cointegrating Vectors and Testing for Causality in Vector Autoregressions," Journal of Economic Surveys, Wiley Blackwell, vol. 13(1), pages 1-35, February.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea12:123501. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.