STOCHASTIC CONVERGENCE OF PER CAPITA GREENHOUSE GAS EMISSIONS AMONG G7 COUNTRIES: AN EVIDENCE FROM STRUCTURAL BREAKS

Yıl 2017, Sayı: 26, 60 - 70, 07.09.2017

Burcu Kıran Baygın

Öz

This paper tests the stochastic convergence hypothesis of per capita greenhouse gas emissions among G7 countries over the period from 1990 through 2014. In testing stochastic convergence, we transfer per capita greenhouse gas emissions in level, relative to the average by using methodology of Carlino and Mills (1993, 1996) and investigate unit root properties of these obtained relative series by using recently developed unit root test of Narayan and Popp(2010) besides conventional unit root tests. Conventional unit root test results indicate that stochastic convergence hypothesis is supported only for France and United States. On the other hand, when we take into account existence of possible structural breaks, the results provide significant support for stochastic convergence of relative per capita greenhouse gas emissions for France, Japan, United Kingdom and United States and divergence for Canada, Germany and Italy.

Anahtar Kelimeler

Stochastic convergence, divergence, greenhouse gas emissions, unit root, structural breaks

STOCHASTIC CONVERGENCE OF PER CAPITA GREENHOUSE GAS EMISSIONS AMONG G7 COUNTRIES: AN EVIDENCE FROM STRUCTURAL BREAKS

Öz

This paper tests the stochastic
convergence hypothesis of per capita greenhouse gas emissions among G7
countries over the period from 1990 through 2014. In testing stochastic
convergence, we transfer per capita greenhouse gas emissions in level, relative
to the average by using methodology of Carlino and Mills (1993, 1996) and
investigate unit root properties of these obtained relative series by using
recently developed unit root test of Narayan and Popp(2010) besides
conventional unit root tests. Conventional unit root test results indicate that
stochastic convergence hypothesis is supported only for France and United
States. On the other hand, when we take into account existence of possible
structural breaks, the results provide significant support for stochastic
convergence of relative per capita greenhouse gas emissions for France, Japan,
United Kingdom and United States and divergence for Canada, Germany and Italy.

Anahtar Kelimeler

Stochastic convergence, divergence, greenhouse gas emissions, unit root, structural breakss

Kaynakça

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