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Empirical Study on the Determinants of CO2 Emissions: Evidence from OECD Countries

  • Iwata, Hiroki
  • Okada, Keisuke
  • Samreth, Sovannroeun

This paper empirically investigates the environmental Kuznets curve (EKC) for CO2 emissions in the cases of 11 OECD countries by taking into account the role of nuclear energy in electricity production. The autoregressive distributed lag (ARDL) approach to cointegration is employed as the estimation method. Our results indicate that energy consumption has a positive impact on CO2 emissions in most countries in the study. However, the impact of trade is not statistically significant. The results provide evidence for a role of nuclear power in reducing CO2 emissions only in some countries. Additionally, although the estimated long-run coefficients of income and its square satisfy the EKC hypothesis in Finland, Japan, Korea and Spain, only Finland’s EKC turning point is inside the sample period of the study, providing poor evidence in support of the EKC hypothesis.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 21520.

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Date of creation: Mar 2010
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Handle: RePEc:pra:mprapa:21520
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  1. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
  2. Soytas, Ugur & Sari, Ramazan & Ewing, Bradley T., 2007. "Energy consumption, income, and carbon emissions in the United States," Ecological Economics, Elsevier, vol. 62(3-4), pages 482-489, May.
  3. Kearsley, Aaron & Riddel, Mary, 2010. "A further inquiry into the Pollution Haven Hypothesis and the Environmental Kuznets Curve," Ecological Economics, Elsevier, vol. 69(4), pages 905-919, February.
  4. Ang, James B., 2009. "CO2 emissions, research and technology transfer in China," Ecological Economics, Elsevier, vol. 68(10), pages 2658-2665, August.
  5. Jeroen J.M. Kremers & Neil R. Ericsson & Juan J. Dolado, 1992. "The power of cointegration tests," International Finance Discussion Papers 431, Board of Governors of the Federal Reserve System (U.S.).
  6. Richmond, Amy K. & Kaufmann, Robert K., 2006. "Is there a turning point in the relationship between income and energy use and/or carbon emissions?," Ecological Economics, Elsevier, vol. 56(2), pages 176-189, February.
  7. Gene M. Grossman & Alan B. Krueger, 1994. "Economic Growth and the Environment," NBER Working Papers 4634, National Bureau of Economic Research, Inc.
  8. Ang, James B., 2007. "CO2 emissions, energy consumption, and output in France," Energy Policy, Elsevier, vol. 35(10), pages 4772-4778, October.
  9. Halicioglu, Ferda, 2008. "An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey," MPRA Paper 11457, University Library of Munich, Germany.
  10. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
  11. Shafik, Nemat, 1994. "Economic Development and Environmental Quality: An Econometric Analysis," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 757-73, Supplemen.
  12. Mohsen Bahmani-Oskooee & A. B. M. Nasir, 2004. "ARDL Approach to Test the Productivity Bias Hypothesis," Review of Development Economics, Wiley Blackwell, vol. 8(3), pages 483-488, 08.
  13. Nektarios Aslanidis & Susana Iranzo, 2009. "Environment and development: is there a Kuznets curve for CO2 emissions?," Applied Economics, Taylor & Francis Journals, vol. 41(6), pages 803-810.
  14. Liu, Xuemei, 2005. "Explaining the relationship between CO2 emissions and national income--The role of energy consumption," Economics Letters, Elsevier, vol. 87(3), pages 325-328, June.
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