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Stochastic convergence in carbon emissions based on a new Fourier-based wavelet unit root test

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Abstract

Most of the existing studies on stochastic convergence of emission have not adequately considered smooth structural changes. The primary purpose of this paper is to examine the validity of stochastic convergence at different income levels by recently proposed Fourier-based wavelet augmented Dickey-Fuller test with smooth shifts. Empirical results can be summed up as follows: (i) carbon emission per capita follows the stationarity process in 35 high-income countries, while carbon emission per capita follows the stationarity process in 27 upper-middle-income countries; (ii) besides, carbon emission per capita follows stationarity process in 30 lower-middle-income countries, while carbon emission per capita follows stationarity process in 13 low-income countries; (iii) in light of these findings, it can be said that stochastic convergence among different income groups is valid. The implications of the empirical findings for environmental planning and management are discussed in the body of the paper.

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Data availability

The datasets can be obtained from https://databank.worldbank.org/source/world-development-indicators#

Notes

  1. The group-specific features have been reported in logarithmic values.

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Authors and Affiliations

  1. Department of Economics, Faculty of Economics and Administrative Sciences, Hatay Mustafa Kemal University, 31060, Antakya, Hatay, Turkey

    Sinan Erdogan

  2. School of Economics, University of Nottingham Malaysia, Jalan Broga, 43500, Selangor, Malaysia

    Sakiru Adebola Solarin

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  1. Sinan Erdogan
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  2. Sakiru Adebola Solarin
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Contributions

Sinan Erdogan conceived the idea of the paper and wrote the introduction, analysis, and conclusion parts of the project. Sakiru Adebola Solarin contributed to the literature review and discussion in the paper.

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Correspondence to Sakiru Adebola Solarin.

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Appendix

Appendix

Table 6 Descriptive statistics of high-income countries
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Table 7 Descriptive statistics of upper-middle-income countries
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Table 8 Descriptive statistics of lower-middle-income countries
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Table 9 Descriptive statistics of low-income countries
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Table 10 Critical values of FWADF test for the model with constant and trend
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Erdogan, S., Solarin, S.A. Stochastic convergence in carbon emissions based on a new Fourier-based wavelet unit root test. Environ Sci Pollut Res 28, 21887–21899 (2021). https://doi.org/10.1007/s11356-020-12033-y

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