Analysing the relationship between CO2 emissions and GDP in China: a fractional integration and cointegration approach.
Resumen: 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.
Identificador universal: http://hdl.handle.net/10641/2608
Fecha: 2021
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- BUSINESS ANALYTICS [141]