Kiel Working Papers, Kiel Institute for World Economics
No 1437:
Carbon Emissions and Economic Growth: Homogeneous Causality in Heterogeneous Panels
David Maddison and Katrin Rehdanz
Abstract: This paper introduces the concept of homogeneous
non-causality in heterogeneous panels. This concept is used to examine a
panel of data for evidence of a causal relationship between GDP and carbon
emissions. The technique is compared to the standard test for homogeneous
non-causality in homogeneous panels and heterogeneous non-causality in
heterogeneous panels. In North America, Asia and Oceania the homogeneous
non-causality hypothesis that CO2 emissions does not Granger cause GDP
cannot be rejected if heterogeneity is allowed for in the data-generating
process. In North America the homogeneous non-causality hypothesis that GDP
does not cause CO2 emissions cannot be rejected either
Keywords: Energy; Carbon Emissions; Granger Causality; and Heterogeneous Panels; (follow links to similar papers)
JEL-Codes: C12,; O13,; Q54; (follow links to similar papers)
32 pages, July 2008
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