Publication

This paper introduces the concept of homogeneous non-causality in heterogeneous panels. The authors use this concept to examine a panel of data for evidence of a causal relationship between GDP and carbon emissions. They find that in North America, Asia and Oceania the homogeneous non-causality hypothesis that carbon dioxide emissions does not cause GDP cannot be rejected if heterogeneity is allowed for in the data-generating process. In North America the homogeneous non-causality hypothesis that GDP does not cause carbon dioxide emissions cannot be rejected either, according to this paper.