Table 7.

Pre-estimation diagnostics

Results from cross-sectional dependence test
Test	Statistic	Prob.
Pearson LM normal	23.725	0.3066
Pearson CD normal	− 0.008	0.9934
Pedroni cointegration test
Panel v statistic	− 0.5795	.2811
Panel Rho statistic	0.7606	0.7765
Panel PP statistic	− 1.636	0.050*
Panel ADF statistic	− 1.645	0.0499**
Group Rho statistic	1.262	0.8965
Group PP statistic	− 4.949	0.00000***
Group ADF statistic	− 3.481	0.0002***
Kao cointegration test
	t stat	Prob.
ADF	− 3.9655	0.0000***

Null hypothesis: cross-sectional independence (CD ~ (0, 1). Dependent variable = CO₂ emissions. v, Rho, PP and ADF statistics are measured using Pedroni (2004, 1999). p values are given in parentheses

PP Phillips–Perron, ADF augmented Dickey–Fuller

***, ** and * represent a statistical rejection level of the null of no cointegration at 1%, 5% and 10% significance levels respectively