Population Ageing, Income Growth and CO2 Emission: Empirical Evidence from High Income OECD Countries

Purpose – The purpose of this paper is to attempts to explore the relationship between population ageing, income growth and CO2 emission in 25 high-income Organization for Economic Cooperation and Development (OECD) countries in the framework of environmental Kuznets curve (EKC). Design/methodology/...

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Main Authors: Hassan, K., Salim, Ruhul
Format: Journal Article
Published: Emerald Group Publishing Ltd. 2015
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/34746
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author Hassan, K.
Salim, Ruhul
author_facet Hassan, K.
Salim, Ruhul
author_sort Hassan, K.
building Curtin Institutional Repository
collection Online Access
description Purpose – The purpose of this paper is to attempts to explore the relationship between population ageing, income growth and CO2 emission in 25 high-income Organization for Economic Cooperation and Development (OECD) countries in the framework of environmental Kuznets curve (EKC). Design/methodology/approach – Following Zagheni (2011) and using a relatively new cointegration technique and fully modified ordinary least square in a panel data over 1980-2009 the empirical results find evidence of inverted-U shaped EKC in these OECD countries. Findings – The empirical results demonstrate that per capita CO2 emission (PCCO2) increases initially with economic growth; however, after reaching a per capita income level of US$ 24,657 it starts falling. With regard to ageing, the cointegrating vector indicates that a one percent increase in the share of aged population will reduce PCCO2 by 1.55 percent in the long run. Originality/value – This is one of the first studies that examine the effect of population ageing on CO2 emission in a panel setting. The paper consider the cross-sectional dependence and use unit root test suitable for cross-sectional-dependent variables. The paper also examine short-run and long-run dynamics of EKC with panel cointegration and panel error correction methods.
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spelling curtin-20.500.11937-347462017-09-13T15:23:54Z Population Ageing, Income Growth and CO2 Emission: Empirical Evidence from High Income OECD Countries Hassan, K. Salim, Ruhul Fully modified least square Population ageing Income growth Panel cointegration Kuznets curve CO2 emission Purpose – The purpose of this paper is to attempts to explore the relationship between population ageing, income growth and CO2 emission in 25 high-income Organization for Economic Cooperation and Development (OECD) countries in the framework of environmental Kuznets curve (EKC). Design/methodology/approach – Following Zagheni (2011) and using a relatively new cointegration technique and fully modified ordinary least square in a panel data over 1980-2009 the empirical results find evidence of inverted-U shaped EKC in these OECD countries. Findings – The empirical results demonstrate that per capita CO2 emission (PCCO2) increases initially with economic growth; however, after reaching a per capita income level of US$ 24,657 it starts falling. With regard to ageing, the cointegrating vector indicates that a one percent increase in the share of aged population will reduce PCCO2 by 1.55 percent in the long run. Originality/value – This is one of the first studies that examine the effect of population ageing on CO2 emission in a panel setting. The paper consider the cross-sectional dependence and use unit root test suitable for cross-sectional-dependent variables. The paper also examine short-run and long-run dynamics of EKC with panel cointegration and panel error correction methods. 2015 Journal Article http://hdl.handle.net/20.500.11937/34746 10.1108/JES-04-2013-0046 Emerald Group Publishing Ltd. fulltext
spellingShingle Fully modified least square
Population ageing
Income growth
Panel cointegration
Kuznets curve
CO2 emission
Hassan, K.
Salim, Ruhul
Population Ageing, Income Growth and CO2 Emission: Empirical Evidence from High Income OECD Countries
title Population Ageing, Income Growth and CO2 Emission: Empirical Evidence from High Income OECD Countries
title_full Population Ageing, Income Growth and CO2 Emission: Empirical Evidence from High Income OECD Countries
title_fullStr Population Ageing, Income Growth and CO2 Emission: Empirical Evidence from High Income OECD Countries
title_full_unstemmed Population Ageing, Income Growth and CO2 Emission: Empirical Evidence from High Income OECD Countries
title_short Population Ageing, Income Growth and CO2 Emission: Empirical Evidence from High Income OECD Countries
title_sort population ageing, income growth and co2 emission: empirical evidence from high income oecd countries
topic Fully modified least square
Population ageing
Income growth
Panel cointegration
Kuznets curve
CO2 emission
url http://hdl.handle.net/20.500.11937/34746