CO2 emissions, GDP and trade : a panel cointegration approach

• This paper examines the relationships among per capita CO2 emissions, per capita GDP and international trade based on panel data spanning the period 1960–2008 for 150 countries. A distinction is also made between OECD and non-OECD countries to capture the differences of this relationship between developed and developing economies. We apply panel unit root and cointegration tests and estimate a panel error correction model. The results from the error correction model suggest that there are long-term relationships between the variables for the whole sample and for non-OECD countries. Finally, Granger causality tests show that there is bidirectional short-term causality between per capita GDP and international trade for the whole sample and between per capita GDP and CO2 emissions for OECD countries.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

CO2 emissions

GDP

international trade

panel data

panel ECM

Complex Systems – Microdata Analysis

Komplexa system - mikrodataanalys

Publication and Content Type

ref (subject category)

art (subject category)