NAFTA and the convergence of CO2 emissions intensity and its determinants

Abstract

This empirical study examines the extent to which the introduction of NAFTA influenced the convergence behavior of CO2 emissions intensity and its determinants (energy intensity and carbonization index) associated with the countries of Canada, Mexico, and the U.S. Our results from tests of stochastic convergence, σ-convergence, and club convergence reveal convergence in both the pre- and post-NAFTA periods. This finding suggests the convergence behavior of CO2 emissions intensity and its determinants has not substantially changed with the introduction of NAFTA.