Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24832
Authors: 
Maddison, David
Rehdanz, Katrin
Year of Publication: 
2008
Series/Report no.: 
Kiel Working Paper 1437
Abstract: 
This paper introduces the concept of homogeneous non-causality in heterogeneous panels. This concept is used to examine a panel of data for evidence of a causal relationship between GDP and carbon emissions. The technique is compared to the standard test for homogeneous non-causality in homogeneous panels and heterogeneous non-causality in heterogeneous panels. In North America, Asia and Oceania the homogeneous non-causality hypothesis that CO2 emissions does not Granger cause GDP cannot be rejected if heterogeneity is allowed for in the data-generating process. In North America the homogeneous non-causality hypothesis that GDP does not cause CO2 emissions cannot be rejected either.
Subjects: 
Energy
carbon emissions
granger causality
heterogeneous panels
JEL: 
C12
O13
Q54
Document Type: 
Working Paper

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