Abstract:
One of the current challenges and complications in the world is the climate change and
global warming, which has numerous and varied effects and consequences in different
regions. In this regard, the effects of economic activities on the increase in greenhouse
gases and also the effects of greenhouse gases on economic activities have become
increasingly controversial. In this study, an investigation was done upon the bidirectional
causality relationship between real gross domestic product per capita and carbon dioxide
emissions per capita in different countries. For this purpose, the Vector Auto-Regression
Model with the micro panel application was used and the World Bank member countries
were divided into different groups. Results indicated bidirectional causality relationship
between Gross domestic product (GDP) and CO2 for three groups of countries. In
addition, there was a one-way causal relationship from GDP o carbon dioxide volume for
subgroups of countries with high average economic growth rate (HGR) and the rest of the
world countries (ROW). This means that, to accomplish the international goals of
decreasing the emissions of pollutant gases, collaboration between HGR and ROW group
of the countries with industrial countries is indispensable. Moreover, heterogeneous noncausality
test for Iran suggests that the economic activities are having increasingly
negative environmental impacts on the country.
Keywords: Carbon dioxide, Causality test, Gross domestic product, Micro panel, Vector
auto-Regression.
