Document Type : Research Paper

Authors

1 Ph.D. Candidate in Economics, Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran

2 M.A student in Economics, Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran

3 Associate Professor, Department of Economics, Ferdowsi University of Mashhad, Mashhad, Iran

Abstract

The current study has studied the threshold effects of energy consumption structure and GDP per capita variables on carbon emissions from 2002 to 2019 for 37 selected countries (with middle to high-income levels) using the non-linear approach of Panel Smooth Transition Regression Models. For this purpose, two separate models have been estimated by considering energy consumption structure transfer and GDP per capita variables. The results indicate a non-linear relationship between the studied variables in both models. The estimation results of both models show that GDP per capita (in the threshold state of energy consumption structure) and energy consumption structure (in the threshold state of GDP per capita) positively affect carbon emissions. Also, urbanization and trade openness have a positive effect on carbon emissions in both models. Thus, the results show that increasing efficiency in energy consumption and GDP per capita structure can significantly reduce carbon emissions. These findings point to the importance of optimizing energy policies and the crucial role of changes in the economic structure in managing greenhouse gas emissions.

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