Title: Eco-efficiency of the world cement industry and innovations: panel causality data analysis

Authors: Filiz Özkan; Ömer Özkan; Amir Koubaa

Addresses: Faculty of Economics and Administrative Sciences, Department of Financial Econometrics, Sakarya University, 54187, Sakarya, Turkey ' Technology Faculty, Department of Civil Engineering, Sakarya University, 54187, Sakarya, Turkey ' Department of Civil and Environmental Engineering, University of Pittsburgh, Benedum Hall, 945, 15261, Pittsburgh, PA, USA

Abstract: Since the cement industry emits large amounts of greenhouse gases into the atmosphere, the sector is recently under scrutiny. This study empirically investigates the co-integration and the causality relationships between the carbon dioxide emissions (CO₂) and the cement industries for the panel comprised of 109 countries using time series data for the period between 1995 and 2008. For the purpose of co-integration, the error correction model (ECM) and panel causality tests were applied in order to determine the aforementioned relation. Cement production was determined to be co-integrated with CO₂ emissions. In the present study, the newly industrialised countries that execute 70% of the world cement production were determined to significantly affect the CO₂ emissions, whereas the effect of advanced developed countries on the emissions were strikingly lower, due to the renewal of their production technologies.

Keywords: CO2; carbon dioxide; carbon emissions; cement production; panel causality analysis; error correction model; greenhouse gases; GHG emissions.

DOI: 10.1504/IJGW.2013.053500

International Journal of Global Warming, 2013 Vol.5 No.2, pp.179 - 196

Received: 28 Sep 2012
Accepted: 15 Nov 2012
Published online: 28 Feb 2014 *

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