IDEAS home Printed from https://ideas.repec.org/p/mas/dpaper/2103.html
   My bibliography  Save this paper

The Economics of Global Warming 1959-2020

Author

Listed:
  • Weshah Razzak

    (School of Economics and Finance, Massey University, Palmerston North)

Abstract

Evidence-based policy re global warming is best relying on a relevant sample of data. Showing close correlation between CO2 and temperature over hundreds of thousands of years is irrelevant today. We choose a sample of annual data from 1959 to-date to provide some statistically robust stylized facts about the relationships between actual CO2 and temperature. Visually, there is a clear upward trend in both data. Time series analyses suggest that CO2 is difference-stationary and temperature is trend-stationary. Thus, the moments (mean, variance, etc.) of the data in levels are functions of time, which means that the correlation between the two variables may be spurious. However, we find no statistically robust evidence of correlation, long run co-variation, long run common trend, or common cycles between CO2 and temperature over a period of 60 years. Nonetheless, at most 40 percent of the variance of the Northern Hemisphere temperature is due to , 20 percent of the Southern Hemisphere, and much less of global temperature.

Suggested Citation

  • Weshah Razzak, 2021. "The Economics of Global Warming 1959-2020," Discussion Papers 2103, School of Economics and Finance, Massey University, New Zealand.
    • Handle: RePEc:mas:dpaper:2103
    as

    Download full text from publisher

    File URL: https://econfin.massey.ac.nz/school/publications/discuss/2021/DP2103.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Econometrics of unit root; trend; cycle; VAR; temperature and global warming; CO2; greenhouse gasses; and fossil fuel consumption;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mas:dpaper:2103. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Woods (email available below). General contact details of provider: https://edirc.repec.org/data/cbmasnz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.