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Emissions and economic development in commodity exporting countries

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  • Jalles, Joao Tovar
  • Ge, Jun

Abstract

This paper uses data for 46 commodity-exporting countries between 1990 and 2014 to show that, in order to get a clear picture of decoupling between emissions and economic development, it is important to distinguish cycles from trends. By means of time series and panel data techniques, our results suggest that, there is a cyclical relationship between emissions and output - what we call the Environmental Okun's Law - that policymakers may fail to see, strong is some countries, absent in others. Moreover, while the sample average trend – or Kuznets – elasticity is 0.6, some countries have negative elasticities, suggesting that they had managed to transition to a low-carbon path. Finally, globalization has played a relevant role and that accounting for cross-border trade - that is, for net emission transfers from international trade - matters.

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  • Jalles, Joao Tovar & Ge, Jun, 2020. "Emissions and economic development in commodity exporting countries," Energy Economics, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:eneeco:v:85:y:2020:i:c:s0140988319303676
    DOI: 10.1016/j.eneco.2019.104572
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    More about this item

    Keywords

    Greenhouse gas; CO2; Environmental Okun's Law; Environmental Kuznets Curve; Trade; Climate change; Fuel-exporters;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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