Analysis of persistence in the green GDP. Evidence from 35 OECD countries

This paper deals with the persistence analysis of the real green GDP and real per capita green GDP in a group of 35 countries by using statistical techniques based on fractional integration. Our results indicate that the majority of the series display nonstationary and a high degree of persistence in the two series, implying permanency of shocks. The only exceptions are Australia, that displays a short memory pattern in the two series, Czech Republic that displays an order of integration in the interval (0, 1) and apart from these two countries, Belgium, Israel and New Zealand that also present mean reversion in one of the two series examined. Policy implications are reported at the end of the paper.