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The Effect of Economic Growth and Oil Price Variations on CO2 Emissions: Evidence from Spain (1874-2011)

Author

Listed:
  • Jacint Balaguer

    () (Department of Economics and Instituto de Economía Internacional, Universitat Jaume I, Castellón, Spain)

  • Manuel Cantavella-Jordá

    () (Department of Economics and Instituto de Economía Internacional, Universitat Jaume I, Castellón, Spain)

Abstract

A structural analysis on an environmental Kuznets curve (EKC with oil prices is carried out for Spain from 1874 to 2011. The dynamics of the long and short-term relationships among carbon dioxide (CO2), economic growth and oil prices is captured through an autoregressive distributed lag (ARDL) model. The EKC hypothesis is supported in a context where real oil price increases play a significant role on the reduction of CO2 emissions. Hence, the results suggest that oil taxes should be taken into account as an effective tool of environmental policy.

Suggested Citation

  • Jacint Balaguer & Manuel Cantavella-Jordá, 2014. "The Effect of Economic Growth and Oil Price Variations on CO2 Emissions: Evidence from Spain (1874-2011)," Working Papers 2014/22, Economics Department, Universitat Jaume I, Castellón (Spain).
  • Handle: RePEc:jau:wpaper:2014/22
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    References listed on IDEAS

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    Keywords

    Environmental Kuznets curve; CO2; oil prices; autoregressive distributed lag model; time series;

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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