CO2 emissions and income trajectory in Australia: the role of technological change

Shahiduzzaman, Md and Alam, Khorshed (2012) CO2 emissions and income trajectory in Australia: the role of technological change. International Journal of Business Research , 12 (5). pp. 102-117. ISSN 1555-1296

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Abstract

This study investigates the relationship between per capita carbon dioxide (CO2) emissions and per capita GDP in Australia, while controlling for technological state as measured by multifactor productivity and export of black coal. Although technological progress seems to play a critical role in achieving long term goals of CO2 reduction and economic growth, empirical studies have often considered time trend to proxy technological change. However, as discoveries and diffusion of new technologies may not progress smoothly with time, the assumption of a deterministic technological progress may be incorrect in the long run. The use of multifactor productivity as a measure of technological state, therefore, overcomes the limitations and provides practical policy directions. This study uses recently developed bound-testing approach, which is complemented by Johansen-Juselius maximum likelihood approach and a reasonably large sample size to investigate the cointegration relationship. Both of the techniques suggest that cointegration relationship exists among the variables. The long-run and short-run coefficients of CO2 emissions function is estimated using ARDL approach. The empirical findings in the study show evidence of the existence of Environmental Kuznets Curve type relationship for per capita CO2 emissions in the Australian context. The technology as measured by the multifactor productivity, however, is not found as an influencing variable in emissions-income trajectory.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Copyright of International Journal of Business Research is the property of International Journal of Business Research and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.
Faculty / Department / School: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 26 Jun 2013 06:16
Last Modified: 09 Feb 2017 00:13
Uncontrolled Keywords: carbon emissions; multifactor productivity; income; cointegration
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1401 Economic Theory > 140102 Macroeconomic Theory
14 Economics > 1403 Econometrics > 140302 Econometric and Statistical Methods
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objective: D Environment > 96 Environment > 9603 Climate and Climate Change > 960302 Climate Change Mitigation Strategies
B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
URI: http://eprints.usq.edu.au/id/eprint/21044

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