Co-integration Relationship between Climatic Change and Economic Variables: The Case of OECD Countries

Human life was established on the various balances. The most important one among these balances is accepted as natural balance. In the medium of destructive competition, The fact that countries have made great destructions in the environment for being able to reach high growth figures has been more clearly understood with climatic changes that have been experienced. Together with revealing the scary scenarios, the need for scientific studies, where the effects of climatic change are dealt with, much more increases every passing days for countries to intervene with this course and form sustainable growth policies. Providing safely access to environmental sustainability, water, energy, and the other services plays key role in -achieving Millennium Development Goals (MDG) These goals consist of 8 goals representing a global commitment about providing a rapid development in key development areas. In this context, in this study, the relationship with macroeconomic variables of greenhouse gas emissions was dealt with panel data analysis by using annual data of the period 1971-2016 for 23 IECD countries. In the first stage, horizontal cross section dependence test was made for the data. As a result of this test made, it was seen that there was horizontal cross section dependence between countries. CADF and CIPS panel unit root tests, among second generation unit root tests, taking this case into consideration, were used, and it was seen that the series were not stationary at the level values. The presence of co-integration relationship between the series was examined by means of Westerlund Durbin Hausman (2008) Test, and it was identified that there was a co-integration relationship between series. In the last stage, long term co-integration coefficients were predicted by CCE method, developed by Pesaran (2006b). In the study, it was identified that there were variables at the different statistical levels that affects climatic change for all countries subjected to analysis, However, for all countries, it is accepted that energy consumption is an important determinant without exception as the most important output of the study.

Anahtar Kelimeler: Climatic change, Panel data analysis, OECD countries

Human life was established on the various balances. The most important one among these balances is accepted as natural balance. In the medium of destructive competition, The fact that countries have made great destructions in the environment for being able to reach high growth figures has been more clearly understood with climatic changes that have been experienced. Together with revealing the scary scenarios, the need for scientific studies, where the effects of climatic change are dealt with, much more increases every passing days for countries to intervene with this course and form sustainable growth policies. Providing safely access to environmental sustainability, water, energy, and the other services plays key role in -achieving Millennium Development Goals (MDG) These goals consist of 8 goals representing a global commitment about providing a rapid development in key development areas. In this context, in this study, the relationship with macroeconomic variables of greenhouse gas emissions was dealt with panel data analysis by using annual data of the period 1971-2016 for 23 IECD countries. In the first stage, horizontal cross section dependence test was made for the data. As a result of this test made, it was seen that there was horizontal cross section dependence between countries. CADF and CIPS panel unit root tests, among second generation unit root tests, taking this case into consideration, were used, and it was seen that the series were not stationary at the level values. The presence of co-integration relationship between the series was examined by means of Westerlund Durbin Hausman (2008) Test, and it was identified that there was a co-integration relationship between series. In the last stage, long term co-integration coefficients were predicted by CCE method, developed by Pesaran (2006b). In the study, it was identified that there were variables at the different statistical levels that affects climatic change for all countries subjected to analysis, However, for all countries, it is accepted that energy consumption is an important determinant without exception as the most important output of the study.

Keywords: Climatic change, Panel data analysis, OECD countries

Sayfa Aralığı: 135-148

Peker, A. E. (2018). Co-integration Relationship between Climatic Change and Economic Variables: The Case of OECD Countries. Journal of Current Researches on Business and Economics, 8 (2), 135-148.