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How Do Economic Growth and the Emissions of Carbon Dioxide Relate?

DOI: 10.4236/oalib.1108516, PP. 1-16

Subject Areas: Development Economics, Business Management

Keywords: ECM, GDP, Carbon Dioxide Emissions, Panel Data Approach

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Abstract

Our work investigated the relationship between carbon dioxide emissions and economic development in 10 different countries from 2010 to 2019, using a panel data technique. The growth of the economy in different countries involves greater use of energy, which leads to more CO2 emissions; hence pollution is intimately related to the growth of the economy and development. By applying the ECM analysis, we confirmed the long-run correlation between Gross Domestic Product and the emissions of CO2 is positive, due to the sluggish adoption of new low-carbon policies, which makes it difficult to attain the same output level with lower carbon dioxide emissions in the long run. The short-run relationship between GDP and the emissions of CO2 is negative, while coherent energy policies are due to help in accomplishing a quick development through more intensive energy consumption, yet our findings show that growth slows as carbon dioxide emissions rise.

Cite this paper

Niyonzima, P. , Yao, X. and Ofori, E. K. (2022). How Do Economic Growth and the Emissions of Carbon Dioxide Relate?. Open Access Library Journal, 9, e8516. doi: http://dx.doi.org/10.4236/oalib.1108516.

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