Analysing the relationship between CO2 emissions and GDP in China: A fractional integration and cointegration approach

Artikel

This paper examines the relationship between the logarithms of carbon dioxide (CO2) emissions and real Gross Domestic Product (GDP) in China by applying fractional integration and cointegration methods. These are more general than the standard methods based on the dichotomy between stationary and non-stationary series, allow for a much wider variety of dynamic processes, and provide information about the persistence and long-memory properties of the series and thus on whether or not the effects of shocks are long-lived. The univariate results indicate that the two series are highly persistent, their orders of integration being around 2, whilst the cointegration tests (using both standard and fractional techniques) imply that there exists a long-run equilibrium relationship between the two variables in first differences, i.e. their growth rates are linked together in the long run. This suggests the need for environmental policies aimed at reducing emissions during periods of economic growth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Journal of Innovation and Entrepreneurship ; ISSN: 2192-5372 ; Volume: 10 ; Year: 2021 ; Issue: 1 ; Pages: 1-16 ; Heidelberg: Springer

Classification and Topics

• Classification: Management ; Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
• Subject: Carbone dioxide (CO2) emissions ; China ; Fractional cointegration ; Fractional integration ; Gross Domestic Product (GDP) ; Persistence

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Caporale, Guglielmo Maria ; Claudio-Quiroga, Gloria ; Gil-Alaña, Luis A.
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2021

Further information

• DOI: doi:10.1186/s13731-021-00173-5
• Handle: http://hdl.handle.net/10419/259649
• Last update: 10.03.2025, 11:45 AM CET