Causality relationship between economic growth and environmental degradation. Case G-8

Abstract

This article is an inductive argumentation and an empirical-analytical paradigm that evaluates the actual relationship between Gross Domestic Product (GDP) per capita and the Carbon Dioxide (CO2) in country groups of the G8 considered as developed in a period of time from 1960 to 2011. It was developed an Augmented Dickey-Fuller unit root (ADF), a Granger Causality Test and a Johansen Cointegration test. The results evidence the non-stationary of constrains in both countries. It was obtained a VAR model with two variables with a number of lags of four - VAR2 (4) to which were tested for causality by demonstrating a unidirectionality of GDP per capita to CO2.

Keywords: economic growth, economic development, income distribution, environmental economics.

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