Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/259649 
Year of Publication: 
2021
Citation: 
[Journal:] Journal of Innovation and Entrepreneurship [ISSN:] 2192-5372 [Volume:] 10 [Issue:] 1 [Article No.:] 32 [Publisher:] Springer [Place:] Heidelberg [Year:] 2021 [Pages:] 1-16
Publisher: 
Springer, Heidelberg
Abstract: 
This paper examines the relationship between the logarithms of carbon dioxide (CO2) emissions and real Gross Domestic Product (GDP) in China by applying fractional integration and cointegration methods. These are more general than the standard methods based on the dichotomy between stationary and non-stationary series, allow for a much wider variety of dynamic processes, and provide information about the persistence and long-memory properties of the series and thus on whether or not the effects of shocks are long-lived. The univariate results indicate that the two series are highly persistent, their orders of integration being around 2, whilst the cointegration tests (using both standard and fractional techniques) imply that there exists a long-run equilibrium relationship between the two variables in first differences, i.e. their growth rates are linked together in the long run. This suggests the need for environmental policies aimed at reducing emissions during periods of economic growth.
Subjects: 
Carbone dioxide (CO2) emissions
China
Fractional cointegration
Fractional integration
Gross Domestic Product (GDP)
Persistence
JEL: 
C22
C32
Q56
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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