Determinants of carbon dioxide emissions in ASEAN+3

Teoh, Xin Di (2015) Determinants of carbon dioxide emissions in ASEAN+3. [Final Year Project Report] (Unpublished)

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Abstract

This study is carried out to investigate the determinants of carbon dioxide emissions in ASEAN+3 (Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam) during the period 1991 to 2010. The methodologies that been employed in this study include Im, Pesaran and Shin Panel Unit Root Test, Pedroni (Engle-Granger based) Cointegration Test and Granger-Causality based on Vector Error Correction Model (VECM). Result from panel unit root test shows that all the variables are integrated of order one, I(1). For the cointegration test, the results indicate that a long relationship is exist between carbon dioxide emissions, energy consumption, economic growth, urbanization, trade openness and transportation. The empirical results show that economic growth is directly caused by carbon dioxide emissions, energy consumption, urbanization, trade openness and transportation in ASEAN+3. In short, economic growth, energy consumption and trade openness are the determinants of CO2 emissions in ASEAN+3.

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