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