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Cross-country distribution dynamics of carbon emissions and intensity: Before and after the global financial crisis

  • Yigang Wei
  • , Michał Wojewódzki*
  • , Tsun Se Cheong
  • , Xunpeng Shi
  • *Corresponding author for this work
  • Lingnan University
  • Hang Seng University of Hong Kong
  • University of Technology Sydney

Research output: Contribution to journalArticlepeer-review

Abstract

This study aims to explore the levels of regional disparity in carbon emissions and intensity among different countries. Our study employs the distribution dynamics approach to uncover transition probabilities and the long-term evolution of relative per capita carbon emissions (REPC) and relative carbon intensity (REPGDP) across 204 countries. We split the analysis period into pre-crisis (2000-2007) and post-crisis (2007-2016) and divided countries into four income groups. The results indicate the emergence of new convergence clubs post-crisis in both REPC and REPGDP. Furthermore, the majority (many) of the low-(high) income countries congregate to extremely low (above the global average) REPC levels in the long run. Finally, using mobility probability plots, we identify low-(high-) income countries with REPC (REPGDP) levels of 2.3 (3.8) times the global average to have the highest probabilities of around 100 (65) per cent of diverging further above the worldwide average in the coming years. The study expands knowledge about convergence-divergence patterns in carbon emissions and intensity, which is crucial for energy management and effective climate policies. Moreover, it can aid in climate change projections and promote a fairer climate framework, encouraging high-emission countries to take greater responsibility.

Original languageEnglish
Pages (from-to)343-370
Number of pages28
JournalReview of Economic Analysis
Volume16
Issue number3
DOIs
StatePublished - 16 Oct 2024

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 13 - Climate Action
    SDG 13 Climate Action

Keywords

  • Carbon emissions
  • Convergence clubs
  • Distribution dynamics
  • Global financial crisis
  • Income levels

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