This study examines conditional convergence in relative per capita carbon dioxide emissions by using the recently developed Residual Augmented Least Squares-Lagrange Multiplier (RALS-LM) unit root test procedure that allows for endogenously determined structural breaks. Utilising a sample of 44 developed and developing countries dating back to the beginning of the 20th century, the null hypothesis of a unit root in relative per capita carbon dioxide emissions is soundly rejected, lending support to the conditional convergence hypothesis. Also, an examination of the pre and post-World War II suggests that convergence in relative per capita carbon dioxide emissions is more pronounced over the post-World War II period as opposed to the pre-World War II period.
- Energy convergence
- Unit root test