The long-run relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882 - 2010

The long-run relationship between carbon dioxide emissions from energy use and economic activity level is estimated for Uruguay between 1882 and 2010. We apply cointegration techniques and estimate a Vector Error Correction Model (VECM) for testing whether these variables are endogenous over the lon...

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Main Authors:	Piaggio, Matías, Padilla, Emilio, Román, Carolina
Format:	Reporte técnico
Language:	Inglés
Published:	Instituto de Economía, Montevideo (Uruguay) 2020
Subjects:	EMISIONES DE GASES DE EFECTO INVERNADERO ACTIVIDADES ECONÓMICAS ESTRUCTURA DE LA PRODUCCION DIOXIDO DE CARBONO EXPORTACIONES DEGRADACION AMBIENTAL CONTAMINACION ECONOMÍA ENERGIA RENOVABLE URUGUAY
Online Access:	https://repositorio.catie.ac.cr/handle/11554/9562

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spelling	RepoCATIE95622022-02-23T02:34:18Z The long-run relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882 - 2010 Piaggio, Matías Padilla, Emilio Román, Carolina EMISIONES DE GASES DE EFECTO INVERNADERO ACTIVIDADES ECONÓMICAS ESTRUCTURA DE LA PRODUCCION DIOXIDO DE CARBONO EXPORTACIONES DEGRADACION AMBIENTAL CONTAMINACION ECONOMÍA ENERGIA RENOVABLE URUGUAY The long-run relationship between carbon dioxide emissions from energy use and economic activity level is estimated for Uruguay between 1882 and 2010. We apply cointegration techniques and estimate a Vector Error Correction Model (VECM) for testing whether these variables are endogenous over the long-rung while also considering the short-run dynamics. The economic productive structure, the degree of openness, and the share of clean sources on total energy supply are also considered as explanatory variables. The results show that there exists a linear relationship between carbon dioxide emissions and per capita economic activity level. Moreover, emissions increase jointly with the industrial sector participation in total output, as a consequence of the intensity of this activity in the consumption of energy from fossil fuels sources. The degree of openness is inversely related with carbon dioxide emissions. This is so because the periods of major opening were based on primary inputs exports, lower in energy intensity than industrial products. The changes in carbon dioxide emission are inversely related to the variation in the share of clean sources on total energy supply. Finally, all the variables included in the cointegration vector are endogenous, adjusting together to the deviations from the long-run relationship. As a consequence of the above, economic growth appears to be not enough for diminishing Uruguayan emissions in the long-run. Changes in the energy matrix should be encouraged, and emissions reduction should come not by energy constraints but by the development of clean sources or energy use efficiency improvements, given the impact of energy on economic activity level. 2020-09-01T17:02:38Z 2020-09-01T17:02:38Z 2015-09 Reporte técnico ISSN: 1510-9305 https://repositorio.catie.ac.cr/handle/11554/9562 en Serie Documentos de Trabajo DT 11/2015 info:eu-repo/semantics/restrictedAccess application/pdf Instituto de Economía, Montevideo (Uruguay)
institution	Centro Agronómico Tropical de Investigación y Enseñanza
collection	Repositorio CATIE
language	Inglés
topic	EMISIONES DE GASES DE EFECTO INVERNADERO ACTIVIDADES ECONÓMICAS ESTRUCTURA DE LA PRODUCCION DIOXIDO DE CARBONO EXPORTACIONES DEGRADACION AMBIENTAL CONTAMINACION ECONOMÍA ENERGIA RENOVABLE URUGUAY
spellingShingle	EMISIONES DE GASES DE EFECTO INVERNADERO ACTIVIDADES ECONÓMICAS ESTRUCTURA DE LA PRODUCCION DIOXIDO DE CARBONO EXPORTACIONES DEGRADACION AMBIENTAL CONTAMINACION ECONOMÍA ENERGIA RENOVABLE URUGUAY Piaggio, Matías Padilla, Emilio Román, Carolina The long-run relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882 - 2010
description	The long-run relationship between carbon dioxide emissions from energy use and economic activity level is estimated for Uruguay between 1882 and 2010. We apply cointegration techniques and estimate a Vector Error Correction Model (VECM) for testing whether these variables are endogenous over the long-rung while also considering the short-run dynamics. The economic productive structure, the degree of openness, and the share of clean sources on total energy supply are also considered as explanatory variables. The results show that there exists a linear relationship between carbon dioxide emissions and per capita economic activity level. Moreover, emissions increase jointly with the industrial sector participation in total output, as a consequence of the intensity of this activity in the consumption of energy from fossil fuels sources. The degree of openness is inversely related with carbon dioxide emissions. This is so because the periods of major opening were based on primary inputs exports, lower in energy intensity than industrial products. The changes in carbon dioxide emission are inversely related to the variation in the share of clean sources on total energy supply. Finally, all the variables included in the cointegration vector are endogenous, adjusting together to the deviations from the long-run relationship. As a consequence of the above, economic growth appears to be not enough for diminishing Uruguayan emissions in the long-run. Changes in the energy matrix should be encouraged, and emissions reduction should come not by energy constraints but by the development of clean sources or energy use efficiency improvements, given the impact of energy on economic activity level.
format	Reporte técnico
author	Piaggio, Matías Padilla, Emilio Román, Carolina
author_facet	Piaggio, Matías Padilla, Emilio Román, Carolina
author_sort	Piaggio, Matías
title	The long-run relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882 - 2010
title_short	The long-run relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882 - 2010
title_full	The long-run relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882 - 2010
title_fullStr	The long-run relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882 - 2010
title_full_unstemmed	The long-run relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882 - 2010
title_sort	long-run relationship between co2 emissions and economic activity in a small open economy: uruguay 1882 - 2010
publisher	Instituto de Economía, Montevideo (Uruguay)
publishDate	2020
url	https://repositorio.catie.ac.cr/handle/11554/9562
work_keys_str_mv	AT piaggiomatias thelongrunrelationshipbetweenco2emissionsandeconomicactivityinasmallopeneconomyuruguay18822010 AT padillaemilio thelongrunrelationshipbetweenco2emissionsandeconomicactivityinasmallopeneconomyuruguay18822010 AT romancarolina thelongrunrelationshipbetweenco2emissionsandeconomicactivityinasmallopeneconomyuruguay18822010 AT piaggiomatias longrunrelationshipbetweenco2emissionsandeconomicactivityinasmallopeneconomyuruguay18822010 AT padillaemilio longrunrelationshipbetweenco2emissionsandeconomicactivityinasmallopeneconomyuruguay18822010 AT romancarolina longrunrelationshipbetweenco2emissionsandeconomicactivityinasmallopeneconomyuruguay18822010
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The long-run relationship between CO2 emissions and economic activity in a small open economy: Uruguay 1882 - 2010

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