An Empirical Study of the Relationships Between CO2 Emissions, Economic Growth and Openness

By Eunho Choi, Almas Heshmati, Yongsung Cho. Social Science Research Network, 2010

119 citations recorded by the source corpus.

This paper investigates the existence of the environmental Kuznets curve (EKC) for carbon dioxide (CO2) emissions and its causal relationships with economic growth and openness by using time series data (1971-2006) from China (an emerging market), Korea (a newly industrialized country), and Japan (a developed country). The sample countries span a whole range of development stages from industrialized to newly industrialized and emerging market economies. The environmental consequences according to openness and economic growth do not show uniform results across the countries. Depending on the national characteristics, the estimated EKC show different temporal patterns. China shows an N-shaped curve while Japan has a U-shaped curve. Such dissimilarities are also found in the relationship between CO2 emissions and openness. In the case of Korea and Japan it represents an inverted U-shaped curve, while China shows a U-shaped curve. We also analyze the dynamic relationships between the variables by adopting a vector auto regression or a vector error correction model. These models through the impulse response functions allow for analysis of the causal variable's influence on the dynamic response of emission variables and it adopts a variance decomposition to explain the magnitude of the forecast error variance determined by the shocks to each of the causal variables over time. Results show evidence of large heterogeneity among the countries and variables impacts.

Subfields: Economics and Econometrics, Environmental Engineering, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/0d9951cdcf708fb91f3682272e31ea89cfdd8d81

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Citations in the corpus

Environmental regulations an option: Asymmetry effect of environmental regulations on carbon emissions using non-linear ARDL (2018, background): “…Hassan 2018; Mert and Bozdağ 2014; Aye and Edoja 2017; Cederborg and Snöbohm 2016; Das Neves Almeida et al. 2017; Aşıcı 2013; McCleary 1953; Shi 2003; Choi, Heshmati, and Cho 2010; Shi 2003; Birdsall 1992; Ehrlich and Holdren 1971; Engelman 1994; Meyerson 1998; Rosa and Dietz 1998; Engelman 1994;…”
Does financial instability increase environmental degradation? Fresh evidence from Pakistan (2013, background): “Similarly, Choi et al. (2010) investigated the rapport between economic growth and CO2 emissions in the framework of environmental Kuznets curves in open economies namely China, Korea and Japan.”