Focusing on nonstationarity of the time series of CO2 emissions, we
analyze the relationship between CO2 emissions and macroeconomic
variables in the framework of an error correction model. To mitigate low
power and size distortion of unit root tests and cointegration tests in a
small sample, various testing methods are employed. Cointegration test
results suggest a relatively robust long-run relation among CO2
emissions, income, technology and energy price. We also find that
energy mix and final energy consumption mix play important roles in
explaining short-run CO2 emission changes. The nuclear energy and the
renewable energy contributes to mitigation of CO2 emissions, whereas
transportation sector’s energy consumption is associated with an
increase of CO2 emissions.