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Per capita carbon emissions convergence in developing Asia: A century of evidence from covariate unit root test with endogenous structural breaks

Author

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  • Matsuki, Takashi
  • Pan, Lei
Abstract
Many studies address the convergence in per capita CO2 emissions. However, whether countries with lower initial per capita emission levels can “catch up” with more emission-intensive countries is unknown. Utilising historical CO2 emission data from 1907, this study investigates whether the per capita CO2 emissions of seven developing Asian economies; namely, China, Indonesia, India, Myanmar, the Philippines, Taiwan, and Thailand, catch up with or converge toward that of the US in the long run. We simultaneously examine the existence of per capita CO2 emissions convergence and the statistical contribution of the emissions drivers using the most recently developed covariate augmented Dickey-Fuller test, which allows for endogenous structural breaks. The main results show firm evidence of catching-up or relative/absolute convergence between the Asian economies and the US in terms of per capita CO2 emissions. Emissions drivers such as population and real GDP per capita growth may encourage the Asian economies to achieve and to maintain the long-run convergence toward the reference country.

Suggested Citation

  • Matsuki, Takashi & Pan, Lei, 2021. "Per capita carbon emissions convergence in developing Asia: A century of evidence from covariate unit root test with endogenous structural breaks," Energy Economics, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:eneeco:v:99:y:2021:i:c:s0140988321002322
    DOI: 10.1016/j.eneco.2021.105326
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    More about this item

    Keywords

    CO2 emissions convergence; Catch up hypothesis; Unit roots; Stationary covariates; Structural breaks;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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