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The determinants of CO2 emissions: evidence from European countries

Author

Listed:
  • Rafael Morales-Lage

    (Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Aurelia Bengochea-Morancho

    (Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Inmaculada Martínez-Zarzoso

    (Department of Economics and Center for Statistics, Georg-August Universitaet Goettingen, Göttingen, Germany & Department of Economics, Universitat Jaume I, Castellón, Spain)

Abstract

This paper applies the stochastic formulation of the IPAT model for analysing the determinants of CO2 emissions in the 28 countries of the European Union (EU) from 1971 to 2012. We apply different methodologies in order to fit the best model: a model with cross-static and time effects and dynamic models to solve some problems related to the structure of the data. The best model is estimated using the Generalized Method of Moments (GMM). As far as the population is concerned, the whole set of countries have a unitary elasticity with respect to carbon dioxide emissions, similar to the elasticity related to GDP per capita and energy intensity. However, we find different effects in CO2 emissions, depending on the group of countries considered. For the subset of EU-15 the influence of population, industry and energy use is lower than the influence shown by these factors in the 13 countries belonging to Central and Eastern Europe.

Suggested Citation

  • Rafael Morales-Lage & Aurelia Bengochea-Morancho & Inmaculada Martínez-Zarzoso, 2016. "The determinants of CO2 emissions: evidence from European countries," Working Papers 2016/04, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2016/04
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    References listed on IDEAS

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    1. Kunofiwa Tsaurai, 2020. "Exploring the Macroeconomic Determinants of Carbon Emissions in Transitional Economies: A Panel Data Analysis Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 536-544.

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    More about this item

    Keywords

    IPAT equation; STIRPAT model; CO2 emissions; European Union;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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