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A Comparative Study on World-Wide Carbon Emission Convergence: An Empirical Analysis
Abstract
Environmental issue is one of the primary concerns in present global scenario for developed as well as developing countries and reducing the emission level of greenhouse gases is the common objective for all. Study of per capita carbon emission convergence is quite significant in the ongoing debate of climate change policy formulation and implementation as future emission level can only decide the incentive to shift to the clean technology. With a balanced panel of 79 countries and 50 years, over 1960-2009, we have tested for both sigma and beta convergence. The data exhibits a possible convergence in carbon emission. The countries are disaggregated twice, first into OECD and Non-OECD countries and then into five categories on the basis of income. OECD countries show absolute and conditional beta convergence, also with sigma convergence. Countries from lower income group have a lower degree of variability in dispersion in the time period being considered. The set of explanatory variables in this analysis are real GDP per capita, population growth rate and trade openness.
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