Social and Behavioral Sciences Commons^™

Carbon Dioxide Emissions And The Macroeconomy: Evidence From The Asean Region, Mari Joy M. Buenavista, Rosalina Palanca-Tan

Economics Department Faculty Publications

This paper examined the effects of income, trade, and foreign direct investments (FDI) on carbon dioxide (CO2) emissions in the Association of Southeast Asian Nations (ASEAN) member countries for the period of 1970–2011 using the panel corrected standard errors (PCSE) estimation method. The results of the study were consistent with the environmental Kuznet’s curve (EKC) hypothesis – CO2 emissions increase as per capita GDP increases up to a certain income threshold, beyond which further increase in income is accompanied by lower emissions. However, the threshold per capita GDP (estimated to be USD 20,017) is way above the income levels of …