An Empirical Test of the Environmental Kuznets Curve for CO2 in G7: A Panel Cointegration Approach.

This paper examines the relationship among CO₂ emissions, energy consumption and GDP for G7 countries over the period 1980-2010. The variables which are used in this paper are energy use, CO₂ emissions and GDP per capita. We test the presence of the environmental Kuznets curve in the G7. To test the relationship panel data approach is used. Kao and Pedroni approaches are used to test the cointegration of the variables. The findings indicate that there is a long-run cointegrated relationship among the variables. The results of the causality tests show that GDP strongly Granger-causes CO₂ emissions and energy consumption. [ABSTRACT FROM AUTHOR]