Persistence, Mean-Reversion and Non-linearities in $$\hbox {CO2}$$ CO2 Emissions: Evidence from the BRICS and G7 Countries

Abstract

This study examines the time series behaviour of CO 2 emissions within a long memory approach with non-linear trends and structural breaks using long span of data for the BRICS and the G7 countries. The main results show significant differences both in the degree of integration and non-linearities among the analyzed countries. Thus, the CO 2 emissions series display, in most of the cases, orders of integration equal to or higher than 1, implying permanent effects of shocks in CO 2 emissions. The only exceptions are Germany, the US and the UK, where shocks will have transitory effects. With respect to the non-linearities, more evidence of non-linear behaviour is obtained in the G7 countries, especially in the cases of the US, the UK, Germany and France. Partial evidence is also found in Canada and India. The significantly different results obtained for emerging and developed economies have important policy implications.

Trend Changes and the Driving Forces of Environmental Indicators in Countries Worldwide: A Structural Change Analysis of Variations in CO2 Emissions and Eco-Efficiency

“…Subsequently, econometric methods have been used to dissect trend shifts in environmental indicators. For instance, when a shock of CO 2 emission occurred, only few developed countries showed a temporary effect [18]. On the other hand, in analyzing the time series data of CO 2 emissions in the EU, fractional integration methods, as demonstrated by Ref.…”