Nonlinearity between CO2 Emission and Economic Development: Evidence from a Functional Coefficient Panel Approach

Sustainability

Hocheol Jeon¹  Kyungsik Nam²  Sungro Lee³ 

[1] Climate, Air Quality and Safety Research Group, Korea Environmental Institute, Sejong 30147, Korea;Energy Industry Research Group, Korea Energy Economics Institute, Ulsan 44543, Korea;Research Institute of Economics and Management, Korea Gas Corporation, Daegu 41062, Korea;

关键词: carbon dioxide emission;    cointegration;    economic growth;    functional coefficient panel;   

DOI  :  10.3390/su122410258

来源: DOAJ

【 摘 要 】

This paper investigates the nonlinear relationship between CO₂ emission and economic development using a newly developed functional coefficient panel model. In contrast to the existing literature, which suggests that the income elasticity of CO₂ emission is parametrically modeled as a function of income, the income coefficient of CO₂ emission is set as a function of both income and time. Then, we estimate the income elasticity in a nonparametric way using the country panel data covering 1971–2017. By doing so, we impose richer dynamics to the income elasticity not only over income but also over time. Our empirical results indicate that the income elasticity has decreased over time for high-income countries, whereas it has increased over time for low-income countries.

【 授权许可】

Unknown