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    Population Ageing, Income Growth and CO2 Emission: Empirical Evidence from High Income OECD Countries

    212950_212950.pdf (420.2Kb)
    Access Status
    Open access
    Authors
    Hassan, K.
    Salim, Ruhul
    Date
    2015
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Hassan, K. and Salim, R. 2015. Population Ageing, Income Growth and CO2 Emission: Empirical Evidence from High Income OECD Countries. Journal of Economic Studies. 42 (1): pp. 54-67.
    Source Title
    Journal of Economic Studies
    DOI
    10.1108/JES-04-2013-0046
    ISSN
    0144-3585
    School
    School of Economics and Finance
    Remarks

    This article is © Emerald Group Publishing and permission has been granted for this version to appear here - http://espace.library.curtin.edu.au/R. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.

    URI
    http://hdl.handle.net/20.500.11937/34746
    Collection
    • Curtin Research Publications
    Abstract

    Purpose – The purpose of this paper is to attempts to explore the relationship between population ageing, income growth and CO2 emission in 25 high-income Organization for Economic Cooperation and Development (OECD) countries in the framework of environmental Kuznets curve (EKC). Design/methodology/approach – Following Zagheni (2011) and 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. Findings – The empirical results demonstrate that per capita CO2 emission (PCCO2) 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 PCCO2 by 1.55 percent in the long run. Originality/value – This is one of the first studies that examine the effect of population ageing on CO2 emission in a panel setting. The paper consider the cross-sectional dependence and use unit root test suitable for cross-sectional-dependent variables. The paper also examine short-run and long-run dynamics of EKC with panel cointegration and panel error correction methods.

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