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Convergence in per capita Carbon Dioxide Emissions: a panel data approach

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  • Guilherme de Oliveira

    ()

  • Giana de Vargas Mores

    ()

Abstract

The purpose of this paper is to estimate a dynamic panel data to test the convergence hypothesis in per capita CO2 emissions. The empirical approach uses random and fixed effects estimators to obtain the converge rate to 118 countries of the Extend Pen World Table, distributed in global and regional samples of countries. Our results show that the convergence rate increases when country-specific effects are considered in the model. In general, Asian and Latin American countries are converging faster to steady-state than the average of countries. The opposite was observed in Organization for Economic Cooperation and Development member countries. In addition, stable and strong convergence rates were found in global and regional large samples, a new result regarding previous literature.

Suggested Citation

  • Guilherme de Oliveira & Giana de Vargas Mores, 2015. "Convergence in per capita Carbon Dioxide Emissions: a panel data approach," Working Papers, Department of Economics 2015_35, University of São Paulo (FEA-USP).
  • Handle: RePEc:spa:wpaper:2015wpecon35
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    File URL: http://www.repec.eae.fea.usp.br/documentos/Oliveira_Mores_WP35.pdf
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    References listed on IDEAS

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    1. Camarero, Mariam & Picazo-Tadeo, Andrés J. & Tamarit, Cecilio, 2013. "Are the determinants of CO2 emissions converging among OECD countries?," Economics Letters, Elsevier, vol. 118(1), pages 159-162.
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
    3. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    4. Joakim Westerlund & Syed Basher, 2008. "Testing for Convergence in Carbon Dioxide Emissions Using a Century of Panel Data," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(1), pages 109-120, May.
    5. Ordás Criado, C. & Grether, J.-M., 2011. "Convergence in per capita CO2 emissions: A robust distributional approach," Resource and Energy Economics, Elsevier, vol. 33(3), pages 637-665, September.
    6. Herrerias, M.J., 2012. "CO2 weighted convergence across the EU-25 countries (1920–2007)," Applied Energy, Elsevier, vol. 92(C), pages 9-16.
    7. Joseph Aldy, 2006. "Per Capita Carbon Dioxide Emissions: Convergence or Divergence?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 33(4), pages 533-555, April.
    8. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    9. Romero-Ávila, Diego, 2008. "Convergence in carbon dioxide emissions among industrialised countries revisited," Energy Economics, Elsevier, vol. 30(5), pages 2265-2282, September.
    10. Joseph E. Aldy, 2007. "Divergence in State-Level Per Capita Carbon Dioxide Emissions," Land Economics, University of Wisconsin Press, vol. 83(3), pages 353-369.
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    More about this item

    Keywords

    Carbon dioxide emissions; conditional convergence; economic growth; environmental dynamics; panel data;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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