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

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.