Open Access Open Access  Restricted Access Subscription or Fee Access

Carbon Emissions and Baltic Dry Index; A Different Approach for Environmental Kuznets Curve

E. Zafeiriou, N. Sariannidis, N. Kalogeridis, E. Drimbetas

Abstract



This study aims to quantify the economic activity – environmental degradation relationship by using Baltic Dry Index (BDI) and carbon emission as corresponding proxies. The implementation of different policy fiscal tools formats the specific economic environment which we expect to affect the volume of carbon emissions. The results of the survey may well provide us with information regarding the causalitybetween the value of BDI and the volume of carbon emissions. The methodology employed, in the present research, is the threshold vector error correction model. According to our findings, 2 thresholds were detected. In the long term and within the first regime as well as in the second regime when the BDI is the dependent variable, the error correction term is statistically significant (the system moves to the steady state), while the relationship of BDI and carbon emissions is of negative sign. The final regime is indicative of a steady state with the short term dynamics to be playing an important role. The results derived, notify us of the direction of the relationship between the two variables, a fact that is useful for environmental policies to be implemented in order to regulate the volume of carbon emissions, generated by a particular economic activity, for example some type of tax on highly polluting products.

Keywords


Environmental Kuznets curve, BDI index, threshold cointegration.

Full Text:

PDF


Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information.