Post Covid Era: Future of Economies and World Order

EnglishTürkçe

CHAPTER


DOI :10.26650/B/SS10.2023.001.04   IUP :10.26650/B/SS10.2023.001.04    Full Text (PDF)

Convergence of Carbon Dioxide Emissions in Oecd Countries: Evidence from the Fourier Unit Root Test

Fatma Kızılkaya

The convergence hypothesis in countries' per capita carbon dioxide emission rates is essential in climate change debates. Although the consequences of climate change are uncertain, many scientists state that emissions of carbon dioxide and other greenhouse gases cause global warming. In addition, increasing atmospheric carbon dioxide concentration is generally seen as the most crucial cause of the greenhouse effect. This study aims to contribute to the debate on environmental convergence. In this direction, using the annual data for the period 1960-2018, the convergence of the per capita carbon dioxide emissions of 30 OECD countries is investigated within the framework of stochastic convergence. In the study, the Fourier ADF unit root test developed by Omay (2015) is used to reveal the stationarity properties of the variables. According to the Fourier ADF test findings, it has been concluded that the per capita carbon dioxide emission series for Ireland, Israel, Switzerland, Luxembourg, Chile, New Zealand, and Greece are stationary, and the convergence hypothesis is valid for these countries.


Keywords: Carbon Dioxide Emission, Convergence, Fourier Unit Root Test

References

  • Acaravcı, A. (2013). Yapısal kırılmalar ve karbon emisyonu: Kıta Avrupa ülkeleri için ampirik bir uygulama. Nevşehir Hacı Bektaş Veli University Journal of Social Sciences, 3, 1-11. google scholar
  • Aldy, J. E. (2006). Per capita carbon dioxide emissions: convergence or divergence? Environmental and Resource Economics, 33(4), 533-555. google scholar
  • Aslan, A. (2009). Convergence analysis of per capita carbon dioxide emissions: 1950- 2004. Ege Academic Review, 9(4). google scholar
  • Barassi, M. R., Cole, M. A. & Elliott, R. J. R. (2008). Stochastic divergence or convergence of per capita carbon dioxide emissions: Re-examining the evidence. Environ Resource Econ, 40, 121- 137. doi:10.1007/s10640-007-9144-1. google scholar
  • Barassi, M. R., Cole, M. A., & Elliott, R. J. (2011). The stochastic convergence of CO2 emissions: a long memory approach. Environmental and Resource Economics, 49(3), 367-385. google scholar
  • Becker, R., Enders, W., & Lee, J. (2006). A stationarity test in the presence of an unknown number of smooth breaks. Journal of Time Series Analysis, 27(3), 381-409. google scholar
  • Bozoklu, S., Yilanci, V., & Gorus, M. S. (2020). Persistence in per capita energy consumption: a fractional integration approach with a Fourier function. Energy Economics, 91, 104926. google scholar
  • Brock, W.A. & Taylor, M.S. (2010). The green Solow model. Journal of Economic Growth, 15(2), 127-153. google scholar
  • Camarero, M.,Mendoza, Y. & Ordonez, J. (2011). Re-examining CO2 emissions. Is the assessment of convergence meaningless? (Working Papers, 2011/06). Retrieved from http://www.doctreballeco.uji.es/ wpficheros/. google scholar
  • Carmarero, M., Picazo-Tadeo, A.J. & Tamarit, C. (2008). Is the environmental performance of industrialized countries converging? A sure approach to testing for convergence. Ecological Economics, 66(4), 653-661. google scholar
  • Christidou, M.T., Panagiotidis & Sharma, A. (2013). On the stationarity of per capita carbon dioxide emissions over a century. Economic Modelling, 33, 918-925. google scholar
  • Churchill, S. A., Inekwe, J., & Ivanovski, K. (2020). Stochastic convergence in per capita CO2 emissions: Evidence from emerging economies, 1921-2014. Energy Economics, 86, 104659. google scholar
  • Churchill, S.A., Inekjwe, J. & Ivanovski, K. (2018). Conditional convergence in per capita carbon emissions since 1900. Applied Energy, 238, 916-927. google scholar
  • Criado, C. O., & Grether, J. M. (2011). Convergence in per capita CO2 emissions: a robust distributional approach. Resource and Energy Economics, 33(3), 637-665. google scholar
  • Enders, W., & J. Lee (2012). The flexible Fourier form and Dickey-Fuller type unit root tests. Economics Letters, 117(1), 196-199. google scholar
  • Erdogan, S., & Solarin, S. A. (2021). Stochastic convergence in carbon emissions based on a new Fourier-based wavelet unit root test. Environmental Science and Pollution Research, 28(17), 21887-21899. google scholar
  • Evans, P. & Karras, G. (1996). Convergence revisited. Journal of Monetary Economics, 37, 249-65. doi:10.1016/0304-3932(96)01250-0. google scholar
  • Ezcurra, R. (2007). Is there cross-country convergence in carbon dioxide emissions? Energy Policy, 35(2), 1363-1372. google scholar
  • Gallant, A. R. (1981). On the bias in flexible, functional forms and an essentially unbiased form: The Fourier flexible form. Journal of Econometrics, 15(2), 211-245. google scholar
  • Jobert, T., Karanfil, F., & Tykhonenko, A. (2010). Convergence of per capita carbon dioxide emissions in the EU: legend or reality?. Energy Economics, 32(6), 1364-1373. google scholar
  • Lanne, M., & Liski, M. (2004). Trends and breaks in per-capita carbon dioxide emissions, 1870-2028. The Energy Journal, 25(4). google scholar
  • Lee, C.-C. & Chang (2008). New evidence on the convergence of per capita carbon dioxide emissions from panel seemingly unrelated regressions augmented Dickey-Fuller tests. Energy, 33(9), 1468-1475. google scholar
  • Magazzino, C. (2019). Testing the stationarity and convergence of CO2 emissions series in MENA countries. International Journal of Energy Sector Management, 13(4), 977-990. https://doi.org/10.1108/ IJESM-09-2018-0008. google scholar
  • Nelson, C. R., & Plosser, C. R. (1982). Trends and random walks in macroeconomic time series: some evidence and implications. Journal of Monetary Economics, 10(2), 139-162. google scholar
  • Nguyen Van, P. (2005). Distribution dynamics of CO 2 emissions. Environmental and Resource Economics, 32(4), 495-508. google scholar
  • Omay, T. (2015). Fractional frequency flexible Fourier form to approximate smooth breaks in unit root testing. Economics Letters, 134, 123-126. google scholar
  • Ozcan, B. & Gultekin, E. (2016). Stochastic convergence in per capita carbon dioxide (CO2) emissions: Evidence from OECD countries. Eurasian Journal of Business and Economics, 9(18), 113-134. doi:10.17015/ ejbe.2016.018.07 google scholar
  • Panopoulou, E., & Pantelidis, T. (2009). Club convergence in carbon dioxide emissions. Environmental and Resource Economics, 44(1), 47-70. google scholar
  • Payne, J. E. (2020). The convergence of carbon dioxide emissions: a survey of the empirical literature. Journal of Economic Studies, Vol. 47 No. 7, pp. 1757-1785. google scholar
  • Presno, M. J., Landajo, M. & Gonzalez, P.F. (2018). Stochastic convergence in per capita CO2 emissions. An approach from nonlinear stationarity analysis. Energy Economics, 70, 563-581. https://doi.org/10.1016/j. eneco.2015.10.001. google scholar
  • Quah, D. (1996). Empirics for economic growth and convergence. European Economic Review, 40, 1353-75. doi:10.1016/0014-2921(95)00051-8. google scholar
  • Perron, P. (1989). The great crash, the oil price shock, and the unit root hypothesis. Econometrica: Journal of the Econometric Society, 1361-1401. google scholar
  • Romero-Âvila, D. (2008). Convergence in carbon dioxide emissions among industrialised countries revisited. Energy Economics, 30(5), 2265-2282. google scholar
  • Saliminezhad, A. & Bahramian, P. (2020). Convergence in per capita CO2 emissions: Evidence from nonlinear unit root tests in top four oil exporter countries. International Journal of Energy Sector Management, 14(6), 1143-1155. https://doi.org/10.1108/IJESM-10-2019-0023. google scholar
  • Strazicich, M. C., & List, J. A. (2003). Are CO 2 emission levels converging among industrial countries?. Environmental and Resource Economics, 24(3), 263-271. google scholar
  • Tiwari, A. K., Kyophilavong, P. & Albulescu, C.T. (2016). Testing the stationarity of CO2 emissions series in Sub-Saharan African countries by incorporating nonlinearity and smooth breaks. Research in International Business and Finance, 37, 527-540. https://doi.org/10.1016/j.ribaf.2016.01.005. google scholar
  • Topallı, N. (2021). Testing stationarity of per capita carbon dioxide emissions in low-income countries: Nonlinear unit root analysis. Journal of Research in Economics, Politics & Finance, 6(3), 608-626. google scholar
  • Ulucak, R., & Erdem, E. (2012). Economics-environment and the efficiency of environmental policies in Turkey. Journal of Academic Researches and Studies, 4(6), 78-98. google scholar
  • Westerlund, J. & Basher, S.A. (2008). Testing for convergence in carbon dioxide emissions using a century of panel data. Environmental and Resource Economics, 40(1), 109-120. google scholar
  • Yavuz, N. Ç. & Yilanci, V. (2013). Convergence in per capita carbon dioxide emissions among G7 countries: A TAR panel unit root approach. Environmental Resource Economics, 54(2), 283-291. doi:10.1007/s10640-012-9595-x. google scholar
  • Yıldız, Ü. & Boz, F.Ç. (2020). Econometric analysis of convergence in carbon emissions per capita for MENA countries. BAİBÜ Sosyal Bilimler Enstitüsü Dergisi, 20(3), 579-588. https://doi.org/10.11616/basbed. v20i56819.749539. google scholar
  • Zivot, E., & Andrews, D. W. K. (2002). Further evidence on the great crash, the oil-price shock, and the unit-root hypothesis. Journal of Business & Economic Statistics, 20(1), 25 google scholar


SHARE




Istanbul University Press aims to contribute to the dissemination of ever growing scientific knowledge through publication of high quality scientific journals and books in accordance with the international publishing standards and ethics. Istanbul University Press follows an open access, non-commercial, scholarly publishing.