Convergence of Sectoral CO <sub>2</sub> Emissions Across States and Territories in Australia

Abstract

We examine convergence in sectoral CO2 emissions across eight states and territories in Australia. We examine club convergence for nine sectors across the states and territories over the period 1990–2017. We find evidence of multiple convergence clubs for the total of all sectors as well as for the eight sectors under investigation. However, we find no evidence of full club convergence in any one sector highlighting that emissions across Australian states and territories converge to multiple equilibria depending on the sector under investigation. These results lend support to the need for tailored policies unique to particular cluster of regions that will target the reduction of CO2 emissions in specific sectors.