Testing the CO2 Emissions Convergence: Evidence from Asian Countries

Abstract

The purpose of this article is to examine the convergence in CO2 emissions across 18 Asian countries over the period of 1972–2010, based on data obtained from World Development Indicators. The study used β and σ convergence for parametric tests and kernel density estimates for non-parametric tests of convergence hypothesis and found convergence in CO2 emission in all the tests. More recent trends have been considered for the tests rather than the long-term trends in CO2 convergence. During the initial period (i.e., 1972–1982 and 1982–1992), the values, although converging, are not significantly depending upon the previous period. In contrast, the results for recent decades show convergence in CO2 emissions significantly. Sigma (σ) convergence estimates also indicates that variation declined more in recent decades. Thus, the empirical findings of the study fulfil the major tests of convergence and provide evidence that many Asian countries’ relative per capita CO2 emissions are converging over time. The study suggests that these results should be looked at in multilateral negotiation agreements.