Research Article

Macroeconomic Factors Affecting Carbon Dioxide Emissions in the Philippines: A Time Series Analysis

Authors

  • Nicole Angela Cruz Department of Economics, University of Santo Tomas, Manila, Philippines
  • Daphne Valerie Dalumpines University of SaDepartment of Economics, University of Santo Tomas, Manila, Philippinesnto Tomas
  • Danielle Canto Department of Economics, University of Santo Tomas, Manila, Philippines

Abstract

This paper examines the relationship between macroeconomic variables (Gross Domestic per capita, Energy Consumption, Trade Openness, and Foreign Direct Investment) and CO2 Emissions in the Philippines from 1981 to 2014. Using multivariate Ordinary Least Squares (OLS) regression, the results indicate that GDP per capita, Energy Consumption, and Trade Openness are significant and positively related parameters of CO2 emissions. Conversely, Foreign Direct Investment is revealed to be positively related but insignificant to CO2 emissions in the Philippines. Moreover, the R-squared of the model and the F-test results suggest that the overall model is robust and significant, respectively. The diagnostic tests employed (including Variance Inflation Factor, Breusch-Godfrey test, White test, Ramsey RESET test, and Jarque-Bera Test) show that the regression model has no evidence of multicollinearity, heteroscedasticity, non-normality, and misspecification. Finally, the researchers offer recommendations that open the potential for future studies and improve the econometric model.

Article information

Journal

Journal of Economics, Finance and Accounting Studies

Volume (Issue)

4 (1)

Pages

642-659

Published

2022-03-17

How to Cite

Cruz, N. A., Dalumpines, D. V., & Canto, D. (2022). Macroeconomic Factors Affecting Carbon Dioxide Emissions in the Philippines: A Time Series Analysis. Journal of Economics, Finance and Accounting Studies, 4(1), 642–659. https://doi.org/10.32996/jefas.2022.4.1.46

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Keywords:

Environmental Kuznets Curve hypothesis, CO2 emissions, Gross Domestic Product per capita, Energy Consumption, Trade Openness, net inflows of Foreign Direct Investment, OLS Regression Analysis