The Determinants of Carbon Dioxide Emissions in the Philippine Setting

Abstract

The main objective of this study is to determine the relationship between carbon dioxide emissions with other study variables such as economic growth, energy consumption, population growth, and gross capital formation in the case of the Philippines set during the period 1976 to 2014. This paper employs various econometric techniques: the Augmented Dickey-Fuller unit root test, Johansen Cointegration test, and Ordinary Least Squares (OLS) estimation regression to prove that there is a relationship between the study variables. The outcome of the unit root test states that all variables are stationary, and cointegration tests prove that there is a long-run relationship among the study variables involved. The Ordinary Least Squares (OLS) estimation shows that energy consumption, population growth, and gross capital formation have a significant relationship with carbon dioxide emissions while economic growth is insignificant. Energy consumption and gross capital formation show a direct relationship between carbon dioxide emissions, while economic growth and population growth are indirectly related.