CO2 Emissions and Economic Growth of SAARC Countries: Evidence from a Panel VAR Analysis

Main Article Content

Sweety Pandey
Mrutyunjaya Mishra

Abstract

The paper examined the causality in both static and dynamic framework between CO2 emissions and economic growth of SAARC countries over the period 1972-2010 using panel approach. The paper presents the facts obtained on the basis of panel unit root test, panel-co-integration test          , panel VECM and Impulse Response functions (IRFs) and Variance decomposition (VDs). IRFs and VDs analysis indicate that CO2 emissions, GDP have positive impact on each other. The result from the application of VECM analysis suggests unidirectional causality running from economic growth to CO2 emissions. The result found contradicts the Environmental Kuznets Curve hypothesis. 

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How to Cite
Pandey, S., & Mishra, M. (2015). CO2 Emissions and Economic Growth of SAARC Countries: Evidence from a Panel VAR Analysis. World Journal of Applied Economics, 1(2), 23-33. https://doi.org/10.22440/EconWorld.J.2015.1.2.SP.0009
Section
Articles
Author Biographies

Sweety Pandey, Banaharas Hindu University, India

RESEARCH SCHOLAR

DEPARTMENT OF ECONOMICS

BANARAS HINDU UNIVERSITY

Mrutyunjaya Mishra, Banaharas Hindu University, India

PROFESSOR

DEPARTMENT OF ECONOMICS

BANARAS HINDU UNIVERSITY

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