C02 emissions, urbanization, consumption of electricity and human capital, a cointegration analysis for panel data worldwide from 1986 to 2016

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Published: jul. 15, 2020
Keywords:
Panel data, Pollution, Urbanization, Energy consumption, Human capital

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Alejandro Ramos
Universidad Nacional de Loja
Belén Jumbo
Universidad Nacional de Loja

Abstract

The objective of this research is to examine the causal link between the growth rates of CO2 emissions, urbanization, electricity consumption and human capital in 114 countries worldwide. The countries were classified into 4 groups, according to their average level of per capita income. The study period covers 1986-2016. Cointegration techniques by Pedroni (1999), correction of error by Westerlund (2007) and causality Dumitrescu & Hurlin (2012) were analyzed to evaluate the relationship between the variables. To evaluate the strength of the cointegration vector in the short and long term, we consider the dynamic panel ordinary least squares method for individual countries and the dynamic ordinary least squares model for groups of countries. The results of the causality test indicate that there is one-way causality between urbanization and CO2 emissions in EILCs. Energy consumption unidirectionally causes CO2 emissions in HICs CO2 emissions unidirectionally cause human capital globally. There is a two-way causality between CO2 emissions and human capital in HICs. Finally, there is a one-way causality between human capital and CO2 emissions in ELICs. A possible policy implication derived from this research is that countries should consider improving the structure of the industry together with greater efficiency in the use of energy and a measured consumption of it, in addition to increasing the participation of renewable energies to mitigate CO2 emissions.

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How to Cite
Ramos, A. ., & Jumbo, B. . (2020). C02 emissions, urbanization, consumption of electricity and human capital, a cointegration analysis for panel data worldwide from 1986 to 2016. Revista Económica, 5(1), 90–104. Retrieved from https://revistas.unl.edu.ec/index.php/economica/article/view/776
Issue
Vol. 5 No. 1 (2018): Revista Económica vol 5 (Julio-Diciembre 2018)
Section
RESEARCH ARTICLES
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