Relationship between Fiscal Subsidies and CO2 Emissions: Evidence from Cross-Country Empirical Estimates
Table 3
Estimation results on the relationship between budgetary subsidy and CO2 emissions.
Independent variables
Model 1
Model 2
Test of robustness
Model 3
Model 4A: LIC & LMIC
Model 4B: UMIC & HIC
Model 5: First Difference#
lsub
0.012
***
0.010
***
0.011
**
0.012
***
0.003
***
(0.003)
(0.003)
(0.004)
(0.004)
(0.001)
lsub(−1)
0.019
***
(0.003)
lsub−lsub(−1)
0.005
***
(0.001)
(−1)
0.978
***
(0.003)
lpcgdp
2.581
***
3.196
***
0.148
***
1.047
***
3.486
***
1.482
***
(0.132)
(0.109)
(0.025)
(0.28)
(0.474)
(0.224)
−0.093
***
−0.127
***
−0.007
***
0.006
−0.14
***
0.054
***
(0.007)
(0.006)
(0.001)
(0.018)
(0.025)
(0.012)
lmfggdp
0.141
***
0.175
***
0.003
0.108
***
0.217
***
0.05
***
(0.015)
(0.013)
(0.003)
(0.023)
(0.014)
(0.017)
lurb
0.404
***
0.270
***
−0.023
***
0.663
***
−0.142
***
0.729
***
(0.036)
(0.028)
(0.005)
(0.039)
(0.04)
(0.174)
cash
0.048
***
0.048
***
0.012
***
0.053
*
0.040
**
0.010
***
(0.015)
(0.014)
(0.004)
(0.029)
(0.016)
(0.003)
gg
0.009
0.013
0.012
***
0.086
***
0.020
0.000
(0.013)
(0.012)
(0.005)
(0.029)
(0.014)
(0.004)
Constant
−16.318
***
−18.652
***
−0.611
***
−12.000
***
Omitted
0.005
(0.541)
(0.453)
(0.114)
(1.024)
(0.009)
Time fixed effect
Yes
Yes
Yes
Yes
Yes
Yes
Number of observations
1660
1492
1492
812
843
1472
Number of groups
131
129
129
89
71
129
Wald Chi2
21349
85353
3195786
11155
66742.4
799
Prob > chi2
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
Notes: #first difference of all continuous variables. Figure in the parenthesis shows the heteroskedasticity [Panel(hetero)] and panel specific first order autocorrelation [PSAR(1)] corrected standard error of the estimated coefficient. ***, **, and * implies estimated coefficient is significant at 0.01, 0.05, and 0.10 level, respectively.
