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Population ageing and CO2 emission: Empirical evidence from high income OECD countries

Salim, R. and Hassan, K. (2011) Population ageing and CO2 emission: Empirical evidence from high income OECD countries. In: Proceedings of the World Business and Economics Research Conference, Hoque, M. (ed), 12 - 13 December, Auckland, New Zealand

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Abstract

This article attempts to examine the effects of population ageing on CO2 emission in 25 high income OECD countries in the framework of Environmental Kuznets Curve (EKC). 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. Specifically, empirical results demonstrate that per capita CO2 emission 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 per capita CO2 emission by 1.55 percentin the long run.

Item Type: Conference Paper
Publisher: World Business Institute
URI: http://researchrepository.murdoch.edu.au/id/eprint/26333
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