The determinants of CO2 emissions: empirical evidence from Italy

Cerdeira Bento, João Paulo (2014): The determinants of CO2 emissions: empirical evidence from Italy.

Abstract

This paper investigates major determinants of CO2 emissions in a small open economy such as Italy over the period 1960-2012 using Granger causality and cointegration methods to ascertain short-run and long-run relationships between emissions, trade openness and energy consumption. The research findings do not support a possible decoupling between economic growth and energy consumption, so that energy conservation policies are expected to have a negative impact on economic growth. Therefore, the use of environmentally friendly and renewable energy sources, such as solar, hydro and wind power, should be further encouraged instead of fossil fuels ones.

• Item Type: MPRA Paper
• Language: English
• Keywords: Emissions, energy-GDP relationship; energy policy; cointegration; Italy
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q50 - General

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