Regional differences in the dynamic linkage between CO2 emissions, sectoral output and economic growth

• Published in: Renewable & sustainable energy reviews Vol. 38; pp. 1 - 11
• Main Authors: Al Mamun, Md, Sohag, Kazi, Hannan Mia, Md. Abdul, Salah Uddin, Gazi, Ozturk, Ilhan
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01-10-2014; Elsevier
• Subjects: Air pollution caused by fuel industries; Applied sciences; CO2 emissions per capita; Economics; Energy; Energy. Thermal use of fuels; Environmental Kuznets Curve; Exact sciences and technology; General aspects; General. Regulations. Norms. Economy; Metering. Control; Sectoral output; World; Environmental Kuznets Curve; Sectoral output; CO2 emissions per capita; Transformation; Gas emission; Econometric analysis; Carbon dioxide; Time series; emissions per capita; CO; Economic development; Environmental Kuznets curve; Services; Industrialization; Cointegration; Economic growth; Environment impact; Air pollution; Per capita; Economic structure
• ISSN: 1364-0321; 1879-0690; 1879-0690
• DOI: 10.1016/j.rser.2014.05.091

Environmental degradation measured by CO2 emissions is a significant challenge to sustainable economic development. Owing to significant differences in the empirical relationship between the economic growth and CO2 emissions and policies adopted by different countries to overcome the challenge are not decisive. This study aims to generalize our knowledge about the relationship between CO2 emissions per capita and economic growth across the world for 1980–2009 periods. Besides, it explores whether the transformation of different economies (e.g. agrarian to industrial and industrial to sophisticated service economy) over the past few decades yielded any significant positive impact towards sustainable economic development by reducing the level of CO2 emission. Empirical results suggest that (i) except for high-income-countries, Environmental Kuznets Curve (EKC) is a general phenomenon across the world, and (ii) the transformation of different economies towards a service economy has produced more pollution in high income countries and less pollution in low and middle income countries.