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A causality analysis on GDP and air emissions in Norway

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Abstract

This paper conducts Granger-causality tests on real per capita GDP and four types of air emissions (CO2, CO, SO2 and NOx) by using Norwegian data covering the period 1973-2003. The test results indicate that only unidirectional causal relationships exist between GDP and air emissions. For CO2 and CO, we find long run causal relationships running from GDP to emissions, whereas for SO2 and NOx, only the short run causal relationships are found from emissions to GDP. Therefore, as far as the four types of air emissions in Norway are concerned, the presumption, employed in the conventional EKC analyses that the causal relationship between emissions and GDP is unidirectional from the latter to the former, may be retained for CO2 and CO only. For SO2 and NOx, however, it is rejected.

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  • Gang Liu, 2006. "A causality analysis on GDP and air emissions in Norway," Discussion Papers 447, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:447
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    Cited by:

    1. Ajmi, Ahdi Noomen & Hammoudeh, Shawkat & Nguyen, Duc Khuong & Sato, João Ricardo, 2015. "On the relationships between CO2 emissions, energy consumption and income: The importance of time variation," Energy Economics, Elsevier, vol. 49(C), pages 629-638.
    2. Jaunky, Vishal Chandr, 2011. "The CO2 emissions-income nexus: Evidence from rich countries," Energy Policy, Elsevier, vol. 39(3), pages 1228-1240, March.

    More about this item

    Keywords

    causality analysis; stationarity; cointegration; air emissions; economic growth;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • 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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