Analysing the relationship between CO2 emissions and GDP in China: a fractional integration and cointegration approach

Journal of Innovation and Entrepreneurship

Guglielmo Maria Caporale¹  Gloria Claudio-Quiroga²  Luis A. Gil-Alana³ 

[1] Department of Economics and Finance, Brunel University London, UB8 3PH, London, UK;Universidad Francisco de Vitoria, Madrid, Spain;Universidad Francisco de Vitoria, Madrid, Spain;University of Navarra, Pamplona, Spain;

关键词: Carbone dioxide (CO) emissions;    Gross Domestic Product (GDP);    China;    Persistence;    Fractional integration;    Fractional cointegration;    C22;    C32;    Q56;   

DOI  :  10.1186/s13731-021-00173-5

来源: Springer

【 摘 要 】

This paper examines the relationship between the logarithms of carbon dioxide (CO2) emissions and real Gross Domestic Product (GDP) in China by applying fractional integration and cointegration methods. These are more general than the standard methods based on the dichotomy between stationary and non-stationary series, allow for a much wider variety of dynamic processes, and provide information about the persistence and long-memory properties of the series and thus on whether or not the effects of shocks are long-lived. The univariate results indicate that the two series are highly persistent, their orders of integration being around 2, whilst the cointegration tests (using both standard and fractional techniques) imply that there exists a long-run equilibrium relationship between the two variables in first differences, i.e. their growth rates are linked together in the long run. This suggests the need for environmental policies aimed at reducing emissions during periods of economic growth.

【 授权许可】

CC BY