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Inequality in Carbon Intensity in EU-28: Analysis Based on Club Convergence

Author

Listed:
  • Firat Emir

    (Department of Economics, Eastern Mediterranean University)

  • Mehmet Balcilar

    (Department of Economics, Eastern Mediterranean University)

  • Muhammad Shahbaz

    (Montpelier Business School, Montpelier, France)

Abstract

This study examines the convergence properties of CO2 intensity in EU-28 countries, using panel data for the period 1990 to 2016. We use Phillips and Sul’s (2007) approach to test for CO2 intensity convergence and identify convergence clubs. In addition to the EU-28 members, we analyze the EU-15, and the new EU members (EU-new) that joined after 2004, as distinct groups for the periods 1990–2016, 1990–2004, and 2005–2016. Our results show no convergence to a single group among the EU countries during the full and two subsample periods. However, the convergence takes place within five to seven clubs for the EU-28 and within three to five clubs for the EU-15 and EU-new. There is no evidence of all members converging to a single club in either group or the three sub-periods examined. This study highlights the need for adopting new strategies considering club properties and for sustainable growth, which meets the EU-28 environmental regulation standards.

Suggested Citation

  • Firat Emir & Mehmet Balcilar & Muhammad Shahbaz, 2018. "Inequality in Carbon Intensity in EU-28: Analysis Based on Club Convergence," Working Papers 15-38, Eastern Mediterranean University, Department of Economics.
  • Handle: RePEc:emu:wpaper:15-38.pdf
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    References listed on IDEAS

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    Cited by:

    1. Małgorzata Porada Rochoń, 2021. "Convergence in Green Growth as the Key to Fighting Climate Change, 1990–2019," Energies, MDPI, vol. 14(24), pages 1-11, December.

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    More about this item

    Keywords

    Carbon Intensity; Club Convergence; Convergence Test; European Union;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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