@article{Dinda:331072,
      recid = {331072},
      author = {Dinda, Soumyananda and Coondoo, Dipankor},
      title = {Income and Emission: A Panel Data based Cointegration  Analysis},
      address = {2003},
      pages = {32},
      year = {2003},
      note = {Presented at the 6th Annual Conference on Global Economic  Analysis, The Hague, The Netherlands},
      abstract = {This paper presents the results of an investigation of the  causality issue of incomeemission relationship based on  time series econometric techniques of unit root test,  cointegration and related error correction model for a  panel data set. Here, the nature of causality between per  capita CO2 emission (PCCO2) and per capita GDP (PCGDP) has  been examined using a cross country panel data set covering  88 countries for the period 1960 - 90. Using the panel unit  root test procedure of Im et al. (1997) (IPS), we have  found that the hypothesis of unit root (i.e.,  non-stationarity) of the time series of PCGDP and PCCO2 can  not be rejected for individual country groups. As both the  variables are found to follow I(1) process, we next have  performed the panel data co-integration test and finally,  we have estimated the ECM (for these country groups for  which significant income-emission cointegration was  obtained) to explore the nature of dynamics implicit in the  given panel data set. Our findings suggest that there is  more or less a bi-directional causal relationship between  income (PCGDP) and CO2 emission (PCCO2) for Africa, Central  America, America as a whole, Eastern Europe, Western  Europe, Europe as a whole and the World as a whole. That  means, the movement of the one variable directly affects  the other variable through a feedback system. Thus, the  policy makers should be cautious to make proper decision  about the control of emission level.},
      url = {http://ageconsearch.umn.edu/record/331072},
}