Co2 emissions and income trajectory in Australia: The role of technological change

Shahiduzzaman, Muhammad & Alam, Khorshed (2012) Co2 emissions and income trajectory in Australia: The role of technological change. International Journal of Business Research, 12(5), pp. 102-108.

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This study investigates the relationship between per capita carbon dioxide (CO2) emissions and per capita GDP in Australia, while controlling for technological state as measured by multifactor productivity and export of black coal. Although technological progress seems to play a critical role in achieving long term goals of CO2 reduction and economic growth, empirical studies have often considered time trend to proxy technological change. However, as discoveries and diffusion of new technologies may not progress smoothly with time, the assumption of a deterministic technological progress may be incorrect in the long run. The use of multifactor productivity as a measure of technological state, therefore, overcomes the limitations and provides practical policy directions. This study uses recently developed bound-testing approach, which is complemented by Johansen- Juselius maximum likelihood approach and a reasonably large sample size to investigate the cointegration relationship. Both of the techniques suggest that cointegration relationship exists among the variables. The long-run and short-run coefficients of CO2 emissions function is estimated using ARDL approach. The empirical findings in the study show evidence of the existence of Environmental Kuznets Curve type relationship for per capita CO2 emissions in the Australian context. The technology as measured by the multifactor productivity, however, is not found as an influencing variable in emissionsincome trajectory.

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ID Code: 93119
Item Type: Journal Article
Refereed: Yes
Keywords: Carbon Emissions, Multifactor Productivity, Income, Cointegration
ISSN: 1555-1296
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > OTHER COMMERCE MANAGEMENT TOURISM AND SERVICES (159900)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Deposited On: 22 Feb 2016 04:44
Last Modified: 03 Mar 2016 06:04

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