Some determinants of carbon dioxide emissions in Bangladesh
by Prashanta Kumar Banerjee; Matiur Rahman
International Journal of Green Economics (IJGE), Vol. 6, No. 2, 2012

Abstract: Carbon dioxide (CO₂) emissions, industrial output growth, population growth and Foreign Direct Investment (FDI) inflows in Bangladesh for 1972-2008 are found non-stationary in terms of both Augmented Dickey-Fuller (ADF) and Kwiatkowski, Phillips, Schmidt and Shin (KPSS) tests with different orders of integration. As a result, the Autoregressive Distributed Lag (ARDL) model and Vector Error-Correction Model (VECM) are estimated. There is evidence of a co-integrating (converging long-run equilibrium) relationship between the variables of long-run causal flows from industrial output growth, population growth and FDI to CO₂ emissions. FDI seems to marginally mitigate CO₂ emissions. Furthermore, short-run interactive net positive feedback effects among the variables can be observed.

Online publication date: Fri, 12-Dec-2014

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