Authors: Mpho Bosupeng
Addresses: Department of Accounting and Finance, University of Botswana, P.O. Box 20151, Bontleng, Gaborone, Botswana
Abstract: Studies pertaining to the effects of economic growth on the environment generally focused on diverse relationships between carbon dioxide, economic growth and energy consumption. This paper contributes to the literature by determining the effects of the USA and China's emissions on several economies carbon dioxide discharges from 1960 to 2010. The analysis uses a cointegration procedure proposed by Saikkonen and Lütkepohl. The study further applies the Granger causality test to test for causal links. The results of the study demonstrate that the US Granger causes emissions of ten economies under investigation. Additionally, China Granger causes 14 economies carbon dioxide discharges. In essence, the USA and China are tasked with the duty of accelerating programs attempting to reduce global carbon dioxide emissions due to their influential standpoint.
Keywords: carbon dioxide; CO2; carbon emissions; economic growth; Granger causality; green taxation; USA; United States; China.
International Journal of Green Economics, 2015 Vol.9 No.2, pp.125 - 143
Received: 17 Dec 2015
Accepted: 31 Dec 2015
Published online: 04 Mar 2016 *