Munich Personal RePEc Archive

Will be there New CO2 Emitters in the Future? Evidence of Long-run Panel Co-integration for N-11 Countries

Nasre Esfahani, Mohammad and Rasoulinezhad, Ehsan (2015): Will be there New CO2 Emitters in the Future? Evidence of Long-run Panel Co-integration for N-11 Countries. Published in: International Journal of Energy Economics and Policy , Vol. 6, No. 3 (22 July 2016): pp. 463-470.

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This article tries to explore the long-run nexus between oil consumption, gross domestic product (GDP) and carbon dioxide (CO2) emissions in the next eleven (N-11) countries over the period 1980-2013, by using the panel c-ointegration, the panel dynamic ordinary least squares (DOLS) and the panel fully modified ordinary least squares (FMOLS) approaches.The empirical findings indicate that there is a bidirectional long-run linkage between oil consumption - GDP per capita and oil consumption - CO2 emissions. Moreover the inverted U-shaped linkage between the square of GDP per capita and CO2 emissions, supports the existence of environmental kuznets curve hypothesis. With estimations through the panel DOLS and FMOLS, the long-run elasticity of oil consumption per capita to CO2 emissions per capita is calculated about 0.96% and positive which is in contrast to the coefficient sign of its elasticity to GDP per capita (−0.48%). Moreover, the elasticity of GDP per capita and CO2 emissions per capita to oil consumption per capita are −0.32% and 0.94%, respectively. These findings prove the negative contribution of non-renewable energy (oil) consumption per capita to GDP per capita in the N-11 group. Furthermore, due to the bidirectional long-run relationships between oil consumption and CO2 emissions, these 11 countries should find the efficient energy policies which are in line with CO2 mitigation and reaching a higher GDP per capita growth.

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