Convergence and club convergence of CO2 emissions at state levels: A nonlinear analysis of the USA

This study analyses the convergence of CO2 emissions at state-level in USA for period from 1976 to 2014 a nonlinear and novel empirical framework. In so doing, we have applied Pesaran’s (2007) test pair-wise approach testing which gives general what are rejection frequencies thus provides evidence convergence. At aggregate level, also Chi-Young et al. (2006) half-life KPSS with Fourier transformation states converging towards cross-section average. Finally, adopted club developed by Phillips Sul identify if last but not least, Schnurbus al., 2017 find there is possible merging. We make two contributions literature: (i) conduct country-specific analysis focusing on US; (ii) consider both Our overall results indicates that about 35% time null unit root rejected when ADF used 22% ADF-GLS (irrespective AIC or SBIC criterion). These supported stationary shows 70–80% times. However, function incorporated hypothesis stationarity only Florida, Massachusetts, Montana, Nevada, New Mexico, Rhode Island, Texas indicating these non-convergent. (after merging) show forming 4 clubs. findings provide new insight into state level profound implications terms environmental policy setting Per Capita Emission (PCE) allocations.