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Are we moving towards decarbonisation of the global economy? Lessons from the distant past to the present

Author

Listed:
  • Muhammad Shahbaz
  • Vassilios Papavassiliou
  • Amine Lahiani

    (LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne)

  • David Roubaud

Abstract

This study adds to the literature on decarbonisation of the global energy system. We employ a detailed and long dataset that covers a period of nearly two centuries for the G7 countries. We link the scale of economic activity to the notion of environmental quality and employ nonlinear Autoregressive Distributed Lag Models that take into account the presence of structural breaks in our series. Moreover, we apply linear Granger causality tests as well as the Hatemi‐J nonlinear causality test to further gauge asymmetries between economic growth and CO2 emissions. Our results are encouraging and point to the significant progress that has been made toward sustainable development. Along these lines, we identify a number of policy implications following a low‐carbon transition that result in enhanced economic growth and competitiveness of energy‐intensive industries.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Muhammad Shahbaz & Vassilios Papavassiliou & Amine Lahiani & David Roubaud, 2023. "Are we moving towards decarbonisation of the global economy? Lessons from the distant past to the present," Post-Print hal-03573208, HAL.
    • Handle: RePEc:hal:journl:hal-03573208
    DOI: 10.1002/ijfe.2553
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