scholarly journals The Relationship between Consumption and CO2 Emissions: Evidence for Portugal

2021 ◽  
Vol 13 (21) ◽  
pp. 12153
Author(s):  
José M. Belbute ◽  
Alfredo M. Pereira
Keyword(s):  
Co2 Emissions ◽  
Fossil Fuels ◽  
Empirical Relationship ◽  
State Dependence ◽  
Household Consumption ◽  
Policy Implications ◽  
Kuznets Curve ◽  
Nondurable Goods ◽  
Goods And Services ◽  
Negative State

This paper establishes an empirical relationship between CO2 emissions from burning fossil fuels and household consumption of nondurable goods and services. Using a typical life cycle-permanent income hypothesis framework, we reject the hypothesis that inclusion of CO2 emissions in the consumption function is not supported by the data. Furthermore, our results suggest the existence of a distaste effect or negative state dependence effect. This result has important policy implications as it suggests that decarbonizing the economy would ultimately stimulate household consumption. Our results also have implications for both the cyclical behavior and the smoothing process of consumption, which depend on the branch of the environmental Kuznets curve that the country is on as well as on the prevalence of intertemporal dependent preferences.

scholarly journals A synthesis of carbon in international trade

2012 ◽  
Vol 9 (3) ◽  
pp. 3949-4023 ◽  
Author(s):  
G. P. Peters ◽  
S. J. Davis ◽  
R. M. Andrew
Keyword(s):  
International Trade ◽  
Co2 Emissions ◽  
Fossil Fuels ◽  
Wood Products ◽  
Total Production ◽  
Goods And Services ◽  
Traded Goods ◽  
Harvested Wood Products ◽  
Global Emissions ◽  
Embodied Co2 Emissions

Abstract. In a globalised world, the transfer of carbon between regions, either physically or embodied in production, represents a substantial fraction of global carbon emissions. The resulting emission transfers are important for balancing regional carbon budgets and for understanding the drivers of regional emissions. In this paper we synthesise current understanding in two parts: (1) embodied CO2 emissions from the production of goods and services produced in one country but consumed in others, (2) physical carbon flows in fossil fuels, petroleum-derived products, harvested wood products, crops, and livestock. We describe the key differences between studies and provide a consistent set of estimates using the same definitions, modelling framework, and consistent data. We find the largest trade flows of carbon in international trade in 2004 were fossil fuels (2673 MtC, 37% of global emissions), CO2 embodied in traded goods and services (1661 MtC, 22% of global emissions), livestock (651 MtC, 20% of total livestock carbon), crops (522 MtC, 31% of total harvested crop carbon), petroleum-based products (183 MtC, 50% of their total production), and harvested wood products (149 MtC, 40% of total roundwood extraction). We find that for embodied CO2 emissions estimates from independent studies are robust. We found that differences between individual studies is not representative of the uncertainty in consumption-based estimates as different studies use different production-based emission estimates as input and different definitions of allocating emissions to international trade. After adjusting for these issues, results across independent studies converge to give less uncertainty than previously assumed. For physical carbon flows there are relatively few studies to be synthesised, but differences between existing studies are due to the method of allocating to international trade with some studies using "apparent consumption" as opposed to "final consumption" in more comprehensive approaches. While results across studies are robust to be used in further applications, more research is needed to understand the differences between methods and to harmonise definitions for particular applications.

scholarly journals Energy, Emissions and the Economy: Empirical Analysis from Pakistan

2014 ◽  
Vol 53 (4II) ◽  
pp. 383-401 ◽  
Author(s):  
Muhammad Tariq Mahmood ◽  
Sadaf Shahab
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Fossil Fuels ◽  
Kuznets Curve ◽  
Bounds Testing ◽  
Long Run ◽  
Negative Impacts ◽  
Energy Emissions ◽  
Carbon Dioxide Co2

It is now an established fact that the most important environmental problem of our era is global warming.1 The rising quantity of worldwide carbon dioxide (CO2) emissions seems to be escalating this problem. As the emissions generally result from consumption of fossil fuels, decreasing energy spending seems to be the direct way of handling the emissions problem. However, because of the possible negative impacts on economic growth, cutting the energy utilisation is likely to be the “less preferred road”. Moreover, if the Environmental Kuznets Curve (EKC) hypothesis applies to the emissions and income link, economic growth by itself may become a solution to the problem of environmental degradation [Rothman and de Bruyn (1998)]. Coondoo and Dinda (2002), however, argue that both developing and developed economies must sacrifice economic growth. Still, countries may opt for different policies to fight global environmental problems, mainly depending on the type of relationship between CO2 emissions, income, and energy consumption over the long run [Soytas and Sari (2006)]. Hence, the emissions-energy-income nexus needs to be studied carefully and in detail for every economy, but more so for the developing countries. In this paper, we investigate the relationship between energy consumption, CO2 emissions and the economy in Pakistan from a long run perspective, in a multivariate framework controlling for gross fixed capital, labour and exports by employing ARDL bounds testing approach.

scholarly journals A synthesis of carbon in international trade

2012 ◽  
Vol 9 (8) ◽  
pp. 3247-3276 ◽  
Author(s):  
G. P. Peters ◽  
S. J. Davis ◽  
R. Andrew
Keyword(s):  
International Trade ◽  
Co2 Emissions ◽  
Fossil Fuels ◽  
Wood Products ◽  
Total Production ◽  
Goods And Services ◽  
Traded Goods ◽  
Harvested Wood Products ◽  
Livestock Products ◽  
Global Emissions

Abstract. In a globalised world, the transfer of carbon between regions, either physically or embodied in production, represents a substantial fraction of global carbon emissions. The resulting emission transfers are important for balancing regional carbon budgets and for understanding the drivers of emissions. In this paper we synthesise current understanding in two parts: (1) CO2 emissions embodied in goods and services that are produced in one country but consumed in others, and (2) carbon physically present in fossil fuels, petroleum-derived products, harvested wood products, crops, and livestock products. We describe the key differences between studies and provide a consistent set of estimates using the same definitions, modelling framework, and consistent data. We find the largest trade flows of carbon in international trade in 2004 were fossil fuels (2673 MtC, 37 % of global emissions), CO2 embodied in traded goods and services (1661 MtC, 22 % of global emissions), crops (522 MtC, 31 % of total harvested crop carbon), petroleum-based products (183 MtC, 50 % of their total production), harvested wood products (149 MtC, 40 % of total roundwood extraction), and livestock products (28 MtC, 22 % of total livestock carbon). We find that for embodied CO2 emissions, estimates from independent studies are robust, and that differences between individual studies are not a reflection of the uncertainty in consumption-based estimates, but rather these differences result from the use of different production-based emissions input data and different definitions for allocating emissions to international trade. After adjusting for these issues, results across independent studies converge to give less uncertainty than previously assumed. For physical carbon flows there are relatively few studies to be synthesised, but differences between existing studies are due to the method of allocating to international trade, with some studies using "apparent consumption" as opposed to "final consumption". While results across studies are sufficiently robust to be used in further applications, more research is needed to understand differences and to harmonise definitions for particular applications.

scholarly journals Monthly direct and indirect greenhouse gases emissions from household consumption in the major Japanese cities

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Yin Long ◽  
Yida Jiang ◽  
Peipei Chen ◽  
Yoshikuni Yoshida ◽  
Ayyoob Sharifi ◽  
...  
Keyword(s):  
Greenhouse Gases ◽  
Fossil Fuels ◽  
Household Consumption ◽  
Urban Household ◽  
Goods And Services ◽  
Greenhouse Gases Emissions ◽  
Direct Emission ◽  
Data Gap ◽  
Household Emissions ◽  
Direct Use

AbstractUrban household consumption contributes substantially to global greenhouse gases (GHGs) emissions. Urban household emissions encompass both direct and indirect emissions, with the former associated with the direct use of fossil fuels and the latter with the emissions embodied in the consumed goods and services. However, there is a lack of consistent and comprehensive datasets outlining in great detail emissions from urban household consumption. To bridge this data gap, we construct an emission inventory of urban household emissions for 52 major cities in Japan that covers around 500 emission categories. The dataset spans from January 2011 to December 2015 and contains 12,384 data records for direct emissions and 1,543,128 records for indirect emissions. Direct emission intensity is provided in g-CO2/JPY to facilitate both future studies of household emission in Japan, as well as act as a reference for the development of detailed household emission inventories in other countries.

scholarly journals Testing the Environmental Kuznets Curve Hypothesis in North America’s Free Trade Agreement (NAFTA) Countries

Energies ◽  
2020 ◽  
Vol 13 (12) ◽  
pp. 3104 ◽  
Author(s):  
Raul Arango Miranda ◽  
Robert Hausler ◽  
Rabindranarth Romero Lopez ◽  
Mathias Glaus ◽  
Jose Ramon Pasillas-Diaz
Keyword(s):  
Granger Causality ◽  
Co2 Emissions ◽  
Free Trade ◽  
Environmental Kuznets Curve ◽  
Free Trade Agreement ◽  
Trade Agreement ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Kuznets Curve ◽  
Ekc Hypothesis

In force since 1994, the North American Free Trade Agreement (NAFTA) is still the most comprehensive agreement ever developed, conforming to the world’s largest trade market. However, the environmental impacts cannot be neglected, particularly greenhouse gas emissions. The environmental Kuznets curve (EKC) hypothesis is revisited, studying Canada, Mexico, and the U.S.A. in relation to carbon dioxide (CO2) emissions, gross domestic product (GDP), energy, and exergy consumption. Ordinary least squares, vector autoregression, and Granger causality tests are conducted. Additionally, exergy indicators and the human development index (HDI) are proposed. Results for Mexico and the U.S.A. describe similar and interesting outcomes. In the search of the environmental Kuznets curve (EKC), the EKC hypothesis is confirmed for Mexico and the U.S.A. However, for Canada, the EKC hypothesis does not stand. The Granger causality test displays the existence of a uni-directional causality running from CO2 emissions to economic growth; a similar behavior was observed while testing the for the exergetic control variables. The most intriguing Granger causal results are those from the U.S.A. A bidirectional relation was observed between exergy intensity and CO2 emissions. Moreover, the EKC curve was plotted by both variables. Furthermore, Mexico’s outcomes reveal that increasing renewable exergy share will decrease CO2 emissions. On the contrary, increasing HDI will grow CO2 emissions. Policy implications arise for NAFTA countries to minimize CO2 emissions by means of the growing renewable energy share. Exergy tools offer an appealing insight into energetic and environmental strategies.

scholarly journals Economic growth, openness, industry and CO2 modelling: are regulatory policies important in Turkish economies?

2020 ◽  
Author(s):  
Emine Kılavuz ◽  
İbrahim Doğan
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
Co2 Emissions ◽  
Fossil Fuels ◽  
Raw Materials ◽  
Trade Openness ◽  
Kuznets Curve ◽  
Regulatory Policies ◽  
Per Capita

Abstract As a result of economic growth, demand for energy increases as well as raw materials. The fact that energy sources are mostly fossil fuels has increased interest in causation between growth and environmental pollution. As global warming and climate changes gain importance in recent years, environmental pollution continues to be discussed in the economic literature. As Turkey’s economy grows rapidly, its increasing energy needs are often met with fossil fuels because they are cheaper than other options. This study analyzes the availability of the environmental Kuznets curve (EKC) hypothesis, which analyzes an inverse U-shaped relation among carbon dioxide (CO2) emissions per capita and output for Turkey in the period 1961–2018. The study used the autoregressive distributed lag to demonstrate the short- and long-term relationship between CO2 emissions per capita, real income per capita, industry and trade openness. The conclusions do confirm that there is a quadratic relation between income and CO2 emissions, supporting EKC relation in the long term. The results also demonstrate that the CO2, which is a major component of greenhouse gases, are mainly specified by income in the long term and short term. The contribution of industry to CO2 is minimal in the long run, while trade openness does not have any effect.

scholarly journals Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities

2021 ◽  
Vol 13 (8) ◽  
pp. 4114
Author(s):  
Eduardo Polloni-Silva ◽  
Diogo Ferraz ◽  
Flávia de Castro Camioto ◽  
Daisy Aparecida do Nascimento Rebelatto ◽  
Herick Fernando Moralles
Keyword(s):  
Economic Growth ◽  
Linear Relationship ◽  
Co2 Emissions ◽  
Policy Implications ◽  
Kuznets Curve ◽  
Developing Regions ◽  
Foreign Investments ◽  
Non Linear ◽  
Carbon Dioxide Co2 ◽  
Unique Dataset

There is much discussion on the non-linear relationship between economic growth and carbon dioxide (CO2) emissions. Additionally, the effects of Foreign Direct Investment (FDI) on the environment are ambiguous, as both beneficial (i.e., pollution-halo) and harmful (i.e., pollution-haven) effects were found. Therefore, the literature presents no consensus on either of these topics. This is especially problematic for developing regions, as these regions represent growing economies interested in receiving foreign investments, and their CO2-related research is limited. This study aims to understand the impacts of economic growth and FDI on the CO2 emissions of São Paulo state, Brazil. To perform this study, a unique dataset on regional FDI was built, and 592 municipalities were included. The analyses combine linear and non-linear estimations, and the results suggest a non-linear relationship between Gross Domestic Product (GDP) per capita and CO2 emissions, along with a negative association between FDI and CO2. Finally, this study discusses possible policy implications and contributes to the international literature.

scholarly journals Dynamic Effect of Oil Resources on Environmental Quality: Testing the Environmental Kuznets Curve Hypothesis for Selected African Countries

2021 ◽  
Vol 13 (7) ◽  
pp. 3649
Author(s):  
Mohamed Ouédraogo ◽  
Daiyan Peng ◽  
Xi Chen ◽  
Shujahat Haider Hashmi ◽  
Mamoudou Ibrahima Sall
Keyword(s):  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Quality ◽  
Environmental Kuznets Curve ◽  
Renewable Energy Sources ◽  
Policy Implications ◽  
Kuznets Curve ◽  
Annual Data ◽  
Causality Analysis ◽  
Oil Resources

This paper examines the environmental Kuznets curve (EKC) theory, augmenting the role of oil resources and energy consumption in carbon dioxide (CO2) emissions using the annual data of 11 African oil-producing countries from 1980 to 2014. We apply advanced panel cointegration and panel autoregressive distributive lag (ARDL) techniques coupled with Granger non-causality analysis to account for cross-sectional dependence and heterogeneity. The results of the augmented mean group (AMG) reveal that oil resources abundance degrades the environmental quality in Angola while abating CO2 emissions in Algeria, Gabon, Morocco, and Nigeria. Contrarily, energy consumption escalates pollution in the Congo Democratic Republic (COD), Côte d’Ivoire (CIV), Gabon, Morocco, and Tunisia. Our findings support the EKC hypothesis only in Cameroon, CIV, and Nigeria while exhibiting a U-shaped curve in Algeria and Morocco. Causality analysis unveils that oil resources Granger cause energy consumption, suggesting the balance between renewable and non-renewable energy sources. The current study has important policy implications for promoting green technology, economic diversification, service sector, and green investments.

scholarly journals The Link between Economic Complexity and Carbon Emissions in the European Union Countries: A Model Based on the Environmental Kuznets Curve (EKC) Approach

2019 ◽  
Vol 11 (17) ◽  
pp. 4753 ◽  
Author(s):  
Neagu
Keyword(s):  
European Union ◽  
Co2 Emissions ◽  
Carbon Emissions ◽  
Environmental Kuznets Curve ◽  
Energy Intensity ◽  
Policy Implications ◽  
Pollutant Emissions ◽  
Kuznets Curve ◽  
Economic Complexity ◽  
Data Framework

The aim of the paper is to apply the Environmental Kuznets Curve (EKC) model in order to explore the link between economic complexity index (ECI) and carbon emissions, in 25 selected European Union (EU) countries from 1995–2017. The study examines a cointegrating polynomial regression (CPR) for a panel data framework as well as for simple time series of individual countries. In the model is also included the variable ‘energy intensity’ as main determinant of carbon emissions. Depending on economic complexity, the CO2 emissions pattern was found to exhibit an inverted U-shaped curve: in the initial phase, pollution increases when countries augment the complexity of the products they export using and after a turning point the rise of economic complexity suppress the pollutant emissions. The panel cointegration test indicates a long-run relationship between economic complexity, energy intensity and carbon emissions. It was also found that a rise of 10% of energy intensity would lead to a 3.9% increase in CO2 emissions. The quadratic model incorporating ECI is validated for the whole panel as well as for six countries (Belgium, France, Italy, Finland, Sweden and the United Kingdom). The graphical representation of the EKC in these countries is discussed. Policy implications are also included.

scholarly journals COVID-19 Outbreak and CO2 Emissions: Macro-Financial Linkages

2020 ◽  
Vol 14 (1) ◽  
pp. 12
Author(s):  
Julien Chevallier
Keyword(s):  
Co2 Emissions ◽  
Fossil Fuels ◽  
Mixed Data ◽  
Energy Information Administration ◽  
Time Varying ◽  
Data Sampling ◽  
Quantitative Finance ◽  
Financial Variables ◽  
Mixed Data Sampling ◽  
The One

In the Dynamic Conditional Correlation with Mixed Data Sampling (DCC-MIDAS) framework, we scrutinize the correlations between the macro-financial environment and CO2 emissions in the aftermath of the COVID-19 diffusion. The main original idea is that the economy’s lock-down will alleviate part of the greenhouse gases’ burden that human activity induces on the environment. We capture the time-varying correlations between U.S. COVID-19 confirmed cases, deaths, and recovered cases that were recorded by the Johns Hopkins Coronavirus Center, on the one hand; U.S. Total Industrial Production Index and Total Fossil Fuels CO2 emissions from the U.S. Energy Information Administration on the other hand. High-frequency data for U.S. stock markets are included with five-minute realized volatility from the Oxford-Man Institute of Quantitative Finance. The DCC-MIDAS approach indicates that COVID-19 confirmed cases and deaths negatively influence the macro-financial variables and CO2 emissions. We quantify the time-varying correlations of CO2 emissions with either COVID-19 confirmed cases or COVID-19 deaths to sharply decrease by −15% to −30%. The main takeaway is that we track correlations and reveal a recessionary outlook against the background of the pandemic.

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