Clustering of countries according to their contribution to GDP growth and its subsequent effect on co2 emissions

• Autor(a) principal: Henriques, João Gonçalo Cavaco
• Data de Publicação: 2019
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/21269
• topic: Co2 emissions; EKC; Mixed model; GDP components; Trade; Clustering

A study on the EKC curve and the N-shaped relationship between CO2 emissions and GDP per capita with a focus on expenditure components of GDP contributions to GDP growth. The investigation took place for a balanced panel of 46 countries with data from 1971 to 2014. Explanatory variables for trade, investment and government expenditure are included in the form of the openness ratio, investment ratio and government size. Furthermore, clustering of the 46 countries according to the contributions of the components to the GDP growth using the k-means methods was conducted. The clusters were dummied and introduced as explanatory variables in the models. For more consistency, the Within-Between or Mundlak’s, a mixed model, estimator was used to estimate effects of the explanatory variables on CO2 emissions. A positive relationship between contributions of trade to GDP growth and subsequently trade and CO2 emissions was found. Furthermore, evidence for an N-shaped EKC curve was observed.