The Determinants of CO2 Emissions in ASEAN+3 Countries

Abstract

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