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Time Trends and Persistence in the Global CO2 Emissions Across Europe

Article

Abstract

We analyze the evolution across time of CO2 emissions in the European Union (EU) using advanced econometric techniques in time series analysis. We estimate the time trends along with the orders of integration of series corresponding to global CO2 emissions in EU member states using both parametric and semiparametric methods. The results show that there is a significantly negative trend only in the case of the UK, this being also a country where the trend shows mean reversion. At the other extreme, Spain, Italy, Greece and Bulgaria are some of the countries where CO2 emissions show positive trends and orders of integration that are substantially above unity. Moreover, we examine the CO2 emissions of the EU as a whole, China and the US, finding some support for mean reversion only in the second case. Therefore, there is less urgent need for policy reforms in the U.K. and somehow China than in the rest of the EU or the US.

Keywords

CO2 emissions Time trends Fractional integration Persistence 

JEL Classification

C22 Q50 Q58 

Notes

Acknowledgements

The authors gratefully acknowledge the financial support received from the Ministerio de Economía y Competitividad: ECO2017-85503-R (Luis Alberiko Gil-Alana) and ECO 2015-68815-P (Tommaso Trani). Comments from the Editor and three anonymous reviewers are gratefully acknowledged.

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Copyright information

© Springer Science+Business Media B.V., part of Springer Nature 2018

Authors and Affiliations

  1. 1.School of EconomicsUniversity of NavarraPamplonaSpain

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