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The Relation between Climate Change and Economic Growth: The In-vestigation The Regional Differences with RCM Model in EU-28 Countries

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  • Aynur Pala

    (Okan Üniversitesi)

Abstract

This study investigates the effect of climate change on economic growth. In the study, it has been used over the period from 1996 to 2014 for EU-28 countries. We applied endogeneity, cross-sectional dependence and slope homogeneity tests. Then, we used panel unit-root and panel cointegration tests. Estimated random coefficient panel regression results show that increasing carbon emission contributes to economic growth in North and East Europe regions countries, relatively cold side. In South-West Europe countries, coefficient of CO2 is insignificant. Increasing carbon emission positively effect on economic growth through especially agricultural and tourism sector outputs in North and East Europe regions.

Suggested Citation

  • Aynur Pala, 2020. "The Relation between Climate Change and Economic Growth: The In-vestigation The Regional Differences with RCM Model in EU-28 Countries," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 9(1), pages 135-155, June.
    • Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:135-155
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    More about this item

    Keywords

    Carbon emission; Economic Growth; Random Coefficient Model;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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