Climate change mitigation with Eurobonds: an Environmental Kuznets Curve analysis

Figures & data

Table 1. Descriptive statistics of variables.

Variable	Observations	Mean	Std. Dev	Min	Max
CO2gdp	204	1.235	1.319	0.063	5
Bond	137	9.074	0.474	8.301	10.276
Urban	204	38.043	13.767	15.873	89.37
Dinvt	204	7.169	3.669	0	11.166
Fdi	204	5.710	8.768	−6.396	57.838
Edu	204	47.651	17.989	18.408	109.444
Gdp	204	5.109	3.295	−4.387	14.047
Rule	204	2.647	0.700	0.895	4.314
Trade	204	−0.458	1.829	−7.048	3.480

Sources: Authors’ computation.

Table 2. Pairwise correlational matrix.

Variable	CO2gdp	Bond	Urban	Dinvt	Fdi	Edu	Gdp	Rule	trade
CO2gdp	1.000
Bond	−0.2771*	1.0000
urban	−0.1551*	0.1328*	1.0000
dinvt	−0.2267*	−0.3439*	0.1279*	1.0000
fdi	−0.0300	−0.3061*	0.0813	0.1474*	1.0000
edu	−0.1830*	0.0296	0.0413	−0.3750*	0.0849	1.0000
gdp	0.0441	−0.0354	0.0143	−0.0021	−0.0863	0.3140*	1.0000
rule	0.0868	0.1235	−0.1293*	−0.2095*	0.0506	0.1384*	0.2010*	1.0000
trade	−0.0689	0.4562*	−0.0593	0.0640	−0.3323*	−0.3982*	−0.1956*	−0.2430*	1.0000

Source: Author’s computation.

Significant level: (***) indicates 1%, (**) indicates 5%, (*) indicates 10%, respectively.

Table 3. Test for a panel effect.

Breusch and Pagan Lagrange multiplier test for random effects
Chi-square value	60.60
p-Value and Prob > chi^2	0.0000

Source: Author’s computation.

Table 4. Hausman test for fixed effects vs. random effects.

Hausman test between fixed effects and random effects
Chi-square value	12.35
p-Value and Prob > chi^2	0.1941

Sources: Author’s computation.

Table 5. Test for heteroscedasticity.

Breusch-Pagan and Cook-Weisberg test for heteroscedasticity
Chi-squared value	101.38
Prob > chi-squared or p-value	0.0000

Source: Author’s computation.

Table 6. Regression results of the impact of Eurobond on carbon dioxide emissions random-effects GLS regression results (robust).

	Variable	Coefficient	Standard error	T-statistics	p-Value
	Constant	6.130235	5.220312	1.17	0.240
	Bond	0.3681808	0.1565068	2.35	0.019**
	Lnurban	−1.098445	1.143615	−0.96	0.337
	Lnrule	0.3946785	1.25316	0.31	0.753
	Lndinvestment	−0.7789483	0.4727957	−1.65	0.099*
	Lngdp	−0.6670848	0.7715005	−0.86	0.387
	Fdi	0.0061419	0.0035321	1.74	0.082*
	Lnedu	−1.067673	0.5115278	−2.09	0.037**
	Trade	−0.8988038	0.6995636	−1.28	0.240
	R-squared	0.521
	Prob > chi^2	0.0243
	Wald Chi^2	11.54

Significant level: (***) indicates 1% (**) indicates 5% (*) indicates 10%.

Sources: Author’s computation.

Table 7. Regression results of the impact of Eurobond on carbon dioxide emissions random-effects GLS regression results (robust).

	Variable	Coefficient	Standard error	T-statistics	p-Value
	Constant	81.34543	36.43951	2.23	0.026
	Bond	4.614807	1.995895	2.31	0.021**
	Lnbondsq	−90.41627	41.65861	−2.17	0.030**
	Lnurban	−1.471977	1.124834	−1.31	0.191
	Lnrule	0.9779048	1.358036	0.72	0.471
	Lndinvestment	−0.8506463	0.4703511	−1.81	0.071*
	Lngdp	−0.6685678	0.5140034	−1.30	0.193
	Fdi	0.0058047	0.4703511	1.72	0.085*
	Lnedu	−0.8626921	0.4897429	−1.76	0.078*
	Trade	−0.8419738	0.6608089	−1.27	0.203
	R-squared	0.2239
	Prob > Chi^2	0.0241
	Wald Chi^2	13.40

Significant level: (***) indicates 1% (**) indicates 5% (*) indicates 10%.

Sources: Author’s computation.