Determining the impact of key contributors on Environmental Deterioration in OECD Countries within the Framework of the extended STIRPAT Model: a DCCE (Dynamic Common Correlated Estimator) Approach


Arvas M. A.

ICE-TEA2022 , Nevşehir, Turkey, 1 - 04 September 2022, pp.40-41

  • Publication Type: Conference Paper / Summary Text
  • City: Nevşehir
  • Country: Turkey
  • Page Numbers: pp.40-41

Abstract

The most important problem for humanity in the 21st century is the problem of global climate change, which leads to continuous and significant environmental degradation. Specifically, in the last decades, the amount of carbon dioxide (CO2) that emerged as a result of the intense energy use of economies has begun to be seen as one of the dominant factors of climate change. Therefore, the most important constraint for today's economies is the problem of ensuring economic growth with the least possible environmental pollution. This study aims to examine the effects of some key factors on the CO2 level for OECD countries within the framework of the recently developed STIRPAT model. For this purpose; in addition to basic variables such as population, welfare level, technology, the effects of some new variables such as energy intensity, trade openness, and labor productivity on CO2 are estimated by the Group Mean Dynamic Common Correlated Estimator (DCCE) method developed by Chudik and Pesaran (2015). The superior side of this method are three-fold; providing consistent solutions to the problems of (i) cross-section dependence, (ii) heterogeneity, and (iii) dynamics. Then, the results obtained from this method are compared with the robust estimators such as FMOLS and DOLS estimation results. Apriori, especially per capita income, population, energy use intensity and trade openness variables are expected to have positive and significant effects on CO2.