Predictors of carbon emissions: an empirical evidence from NAFTA countries

• Published in: Environmental science and pollution research international Vol. 28; no. 9; pp. 11205 - 11223
• Main Authors: Musah, Mohammed, Kong, Yusheng, Vo, Xuan Vinh
• Format: Journal Article
• Language: English
• Published: Berlin/Heidelberg Springer Berlin Heidelberg 01-03-2021; Springer Nature B.V
• Subjects: Aquatic Pollution; Atmospheric Protection/Air Quality Control/Air Pollution; Carbon; Carbon dioxide; Carbon Dioxide - analysis; Carbon dioxide emissions; Cross-Sectional Studies; Cross-sections; Dependence; Earth and Environmental Science; Economic Development; Economic growth; Ecotoxicology; Emissions; Environment; Environmental Chemistry; Environmental Health; Environmental science; Free trade; GDP; Gross Domestic Product; Heterogeneity; North America; North American Free Trade Agreement; Population growth; Research Article; Time series; Trade agreements; Waste Water Technology; Water Management; Water Pollution Control; North America; Population growth; NAFTA countries; Economic growth; Foreign direct investments; Carbon emissions; CCEMG regression estimator; Predictors
• ISSN: 0944-1344; 1614-7499
• DOI: 10.1007/s11356-020-11197-x

This study examined the predictors of carbon emissions in member countries of the North American Free Trade Agreement (NAFTA). Panel models robust to cross-sectional dependence and slope heterogeneity were used for the study. From the heterogeneity and cross-sectional dependence tests, the studied panel was heterogeneous and cross-sectionally dependent. Also, the unit root and cointegration tests established the series to be first differenced stationary and cointegrated in the long run. Additionally, results of the CCEMG regression estimator in the whole panel affirmed economic growth (GDP) to be a significantly positive predictor of CO
2
emissions, while foreign direct investments (FDI) and population growth (POP) were trivial determinants of CO
2
emissions. The discoveries were however diverse in the individual countries. Finally, there was no causality between GDP and CO
2
emissions and between POP and CO
2
emissions. However, there was a one-way causality from CO
2
emissions to FDI. Policy recommendations are further discussed.