CO2 emissions and economic activity: Heterogeneity across countries and non-stationary series

► Path and parameters homogeneity in CO2-economic activity relationship is analyzed. ► Longer period than previous studies allows greater overlap between countries' paths. ► We also test turning point homogeneity, which imposes a weaker restriction. ► Functional form, parameters and turning point homogeneity is rejected. ► Individual functional form for the long term relation is determined for each country.