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Impact of military on biofuels consumption and GHG emissions: the evidence from G7 countries

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Abstract

It was aimed to test the relation among the greenhouse gases emissions, economic growth, biofuels consumption, and militarization in G7 countries during the 1985–2015 period by Pedroni 1995 and panel Johansen tests and two long-run estimators—dynamic OLS and fully modified OLS. Long-run estimators found that economic growth and militarization have statistically significant positive impact on CO2 emission of G7 countries. Furthermore, the panel causality tests were applied: Dumitrescu and Hurlin (Econ Model 29(4):1450–1460, 2012) and panel Granger causality. These tests determined the causal relationship between the variables. The results of this paper implied that economic growth and biofuels consumption depend on militarization, and economic growth and militarization are granger causes of the greenhouse gases emissions.

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Notes

  1. Because this test is currently not possible in Eviews to specify including a linear trend, it was transformed to be used by using the first differences of all variables. This transformation is appropriate for series containing a unit root; however, caution is required since trend stationary series become over-differenced.

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  1. Department of Economics, Yildiz Technical University, FEAS, Davutpasa Campus, Istanbul, Turkey

    Melike Bildirici

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  1. Melike Bildirici
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Correspondence to Melike Bildirici.

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Bildirici, M. Impact of military on biofuels consumption and GHG emissions: the evidence from G7 countries. Environ Sci Pollut Res 25, 13560–13568 (2018). https://doi.org/10.1007/s11356-018-1545-x

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