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Production Technology and Carbon Emission: Long run relation with Short run Dynamics

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  • Dinda, Soumyananda

Abstract

What is the role of technological progress on reduction of CO2 emission? Question of linkage among carbon emission, income and technological progress is the main focuses on recent research area. Using vector error correction model (VECM), this paper investigates the long run relation with short run dynamics among CO2 emission, technological progress and economic growth. This study observes a specific kind of causality running from technological progress to CO2 emission in the USA during 1963 – 2010, while past income is the cause of rising carbon emission. Policy makers should emphasis on R & D for updated production technology which helps to reduce CO2 emission with raising income. Technological progress is the central force that causes income growth as well as emission reduction. Continuous change and adaption of new and updated technology is the main driving force toward sustainable development.

Suggested Citation

  • Dinda, Soumyananda, 2015. "Production Technology and Carbon Emission: Long run relation with Short run Dynamics," MPRA Paper 91000, University Library of Munich, Germany, revised 2016.
  • Handle: RePEc:pra:mprapa:91000
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    1. Dinda, Soumyananda, 2015. "Production Technology and Carbon Emission: Long run relation with Short run Dynamics," MPRA Paper 91000, University Library of Munich, Germany, revised 2016.

    More about this item

    Keywords

    Causality; Co-integration; CO2 Emission; Income; Innovation; Utility Patent; Technological Progress; R&D; Technology Adaption; USA; VECM;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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