Advertisement

Inequality in carbon intensity in EU-28: analysis based on club convergence

  • Firat Emir
  • Mehmet Balcilar
  • Muhammad Shahbaz
Research Article
  • 31 Downloads

Abstract

This study examines the convergence properties of CO2 intensity in EU-28 countries, using panel data for the period 1990 to 2016. We use Phillips and Sul’s (2007) approach to test for CO2 intensity convergence and identify convergence clubs. In addition to the EU-28 members, we analyze the EU-15, and the new EU members (EU-new) that joined after 2004, as distinct groups for the periods 1990–2016, 1990–2004, and 2005–2016. Our results show no convergence to a single group among the EU countries during the full and two subsample periods. However, the convergence takes place within five to seven clubs for the EU-28 and within three to five clubs for the EU-15 and EU-new. There is no evidence of all members converging to a single club in either group or the three sub-periods examined. This study highlights the need for adopting new strategies considering club properties and for sustainable growth, which meets the EU-28 environmental regulation standards.

Keywords

Carbon intensity Club convergence Convergence test European Union 

JEL classifications

O13 O47 O5 Q52 C22 

Supplementary material

11356_2018_3858_MOESM1_ESM.xls (245 kb)
ESM 1 (XLS 245 kb)
11356_2018_3858_MOESM2_ESM.do (1 kb)
ESM 2 (DO 692 bytes)

References

  1. Acar S, Lindmark M (2016) Periods of converging carbon dioxide emissions from oil combustion in a pre-Kyoto context. Environ Dev 19(1–9):1–9CrossRefGoogle Scholar
  2. Acar S, Lindmark M (2017) Convergence of CO2 emissions and economic growth in the OECD countries: did the type of fuel matter? Energy Sources Part B: Econ Plan Pol 12(7):618–627CrossRefGoogle Scholar
  3. Acaravci A, Erdogan S (2016) The convergence behavior of CO2 emissions in seven regions under multiple structural breaks. Intern J En Econ and Pol 6(3):575–580Google Scholar
  4. Aldy JE (2006) Per capita carbon dioxide emissions: convergence or divergence? Environ Res Econ. 33(4):533–555CrossRefGoogle Scholar
  5. Apergis N, Payne JE (2017) Per capita carbon dioxide emissions across US states by sector and fossil fuel source: evidence from club convergence tests. Energy Econ 63:365–372CrossRefGoogle Scholar
  6. Barassi MR, Cole MA, Elliott RJ (2008) Stochastic divergence or convergence of per capita carbon dioxide emissions: re-examining the evidence. Environ Res Econ. 40(1):121–137CrossRefGoogle Scholar
  7. Begum RA, Sohag K, Abdullah SMS, Jaafar M (2015) CO2 emissions, energy consumption, economic and population growth in Malaysia. Renew Sust Energ Rev 41:594–601CrossRefGoogle Scholar
  8. Burnett JW (2016) Club convergence and clustering of US energy-related CO2 emissions. Resour Energy Econ 46:62–84CrossRefGoogle Scholar
  9. Camarero M, Picazo-Tadeo AJ, Tamarit C (2013) Are the determinants of CO2 emissions converging among OECD countries? Econ Lett 118(1):159–162CrossRefGoogle Scholar
  10. Christidou M, Panagiotidis T, Sharma A (2013) On the stationarity of per capita carbon dioxide emissions over a century. Econ Model 33:918–925CrossRefGoogle Scholar
  11. Criado CO, Grether JM (2011) Convergence in per capita CO2 emissions: a robust distributional approach. Resour Energy Econ 33(3):637–665CrossRefGoogle Scholar
  12. Durlauf SN, Johnson PA, Temple JR (2005) Growth econometrics. Handb Econ Growth 1:555–677CrossRefGoogle Scholar
  13. EEA (2016) European Environment Agency. http://www.eea.europa.eu/data-and-maps/data/data-viewers/greenhouse-gases-viewer. Accessed 27 Jan 2017
  14. El Montasser G, Ajmi AN, Nguyen DK (2018) Carbon emissions—income relationships with structural breaks: the case of the middle eastern and north African countries. Environ Sci Pollut Res 25(3):2869–2878CrossRefGoogle Scholar
  15. Eurostat (2016) The source data for GHG emissions. http://ec.europa.eu/eurostat/data/database. Accessed 10 Oct 2016 from
  16. Ezcurra R (2007) Is there cross-country convergence in carbon dioxide emissions? Energy Policy 35(2):1363–1372CrossRefGoogle Scholar
  17. Farhani S, Ozturk I (2015) Causal relationship between CO2 emissions, real GDP, energy consumption, financial development, trade openness, and urbanization in Tunisia. Environ Sci Pollut Res 22(20):15663–15676CrossRefGoogle Scholar
  18. Haseeb A, Xia E, Baloch MA, Abbas K (2018) Financial development, globalization, and CO2 emission in the presence of EKC: evidence from BRICS countries. Environ Sci Pollut Res 25(31):31283–31296Google Scholar
  19. Heidari H, Katircioğlu ST, Saeidpour L (2015) Economic growth, CO2 emissions, and energy consumption in the five ASEAN countries. Int J Electr Power Energy Syst 64:785–791CrossRefGoogle Scholar
  20. Herrerias MJ (2012) CO2 weighted convergence across the EU-25 countries (1920–2007). Appl energy 1(92):9-16Google Scholar
  21. Herrerias MJ (2013) The environmental convergence hypothesis: carbon dioxide emissions according to the source of energy. Energy Policy 61:1140–1150CrossRefGoogle Scholar
  22. Huang J (2018) Investigating the driving forces of China’s carbon intensity based on a dynamic spatial model. Environ Sci Pollut Res Int 25:21833–21843Google Scholar
  23. Jobert T, Karanfil F, Tykhonenko A (2010) Convergence of per capita carbon dioxide emissions in the EU: legend or reality? Energy Econ 32(6):1364–1373CrossRefGoogle Scholar
  24. Korban Z, Manowska A (2011) Wykorzystanie ciągów czasowych w procesie szacowania poziomu emisji dwutlenku węgla [the use of time sequences in the process of estimating carbon dioxide emissions]. Górnictwo i. Geologia 6(4):39–48Google Scholar
  25. Lee CC, Chang CP (2008) New evidence on the convergence of per capita carbon dioxide emissions from panel seemingly unrelated regressions augmented dickey–fuller tests. Energy 33(9):1468–1475CrossRefGoogle Scholar
  26. Li X, Lin B (2013) Global convergence in per capita CO2 emissions. Renew Sust Energ Rev 24:357–363CrossRefGoogle Scholar
  27. Liu C, Hong T, Li H, Wang L (2018) From club convergence of per capita industrial pollutant emissions to industrial transfer effects: an empirical study across 285 cities in China. Energy Policy 121:300–313CrossRefGoogle Scholar
  28. Ozcan B (2013) The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: a panel data analysis. Energy Policy 62:1138–1147CrossRefGoogle Scholar
  29. Panopoulou E, Pantelidis T (2009) Club convergence in carbon dioxide emissions. Environ Resour Econ 44(1):47–70CrossRefGoogle Scholar
  30. Park Y, Meng F, Baloch MA (2018) The effect of ICT, financial development, growth, and trade openness on CO2 emissions: an empirical analysis. Environ Sci Pollut Res 25(30):30708–30719Google Scholar
  31. Phillips PC, Sul D (2007) Transition modeling and econometric convergence tests. Econometrica 75(6):1771–1855CrossRefGoogle Scholar
  32. Phillips PC, Sul D (2009) Economic transition and growth. J Appl Econ 24(7):1153–1185CrossRefGoogle Scholar
  33. Quah D (1993) Galton’s fallacy and tests of the convergence hypothesis. Scand J Econ 95:427–443Google Scholar
  34. Quah DT (1996) Convergence empirics across economies with (some) capital mobility. J Econ Growth 1(1):95–124CrossRefGoogle Scholar
  35. Quah DT (1997) Empirics for growth and distribution: stratification, polarization, and convergence clubs. J Econ Growth 2(1):27–59CrossRefGoogle Scholar
  36. Romero-Ávila D (2008) Convergence in carbon dioxide emissions among industrialised countries revisited. Energy Econ 30(5):2265–2282CrossRefGoogle Scholar
  37. Solarin SA (2014) Convergence of CO2 emission levels: evidence from African countries. J Econ Res 19(1):65–92Google Scholar
  38. Stegman A (2005) Convergence in carbon emissions per capita. Department of Economics, Macquarie University, MacquarieGoogle Scholar
  39. Strazicich MC, List JA (2003) Are CO2 emission levels converging amongst industrial countries? Environ Resour Econ 24(3):263–271CrossRefGoogle Scholar
  40. Ulucak R, Apergis N (2018) Does convergence really matter to the environment? An application based on club convergence and on the ecological footprint concept for the EU countries. Environ Sci Pol Res 80:21–27CrossRefGoogle Scholar
  41. Van PN (2005) Distribution dynamics of CO 2 emissions. Environ Res Econ 32(4):495–508CrossRefGoogle Scholar
  42. Wang Y, Zhang P, Huang D, Cai C (2014) Convergence behavior of carbon dioxide emissions in China. Econ Model 43:75–80CrossRefGoogle Scholar
  43. Westerlund J, Basher SA (2008) Testing for convergence in carbon dioxide emissions using a century of panel data. Environ Resour Econ 40(1):109–120CrossRefGoogle Scholar
  44. Yavuz NC, Yilanci V (2013) Convergence in per capita carbon dioxide emissions among G7 countries: a TAR panel unit root approach. Environ Resour Econ 54(2):283–291CrossRefGoogle Scholar
  45. Yu S, Hu X, Fan JL, Cheng J (2018) Convergence of carbon emissions intensity across Chinese industrial sectors. J Clean Prod 194:179–192CrossRefGoogle Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  • Firat Emir
    • 1
  • Mehmet Balcilar
    • 1
    • 2
    • 3
  • Muhammad Shahbaz
    • 2
  1. 1.Faculty of Business and Economics, Department of EconomicsEastern Mediterranean UniversityFamagustaTurkey
  2. 2.Montpelier Business SchoolMontpelierFrance
  3. 3.University of PretoriaPretoriaSouth Africa

Personalised recommendations