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dc.titleGreen or Growth? Understanding the Relationship between Economic Growth and CO2 Emissions
dc.contributor.authorBalza, Lenin
dc.contributor.authorHeras-Recuero, Laura
dc.contributor.authorMatías, David
dc.contributor.authorYépez-García, Ariel
dc.contributor.orgunitEnergy Division
dc.date.available2024-05-01T00:05:00
dc.date.issue2024-05-01T00:05:00
dc.description.abstractThe relationship between economic growth and environmental impact is a topic that has largely been studied through the framework of the Environmental Kuznets Curve (EKC), which posits an inverted U-shape relationship between the two. We examine this link by analyzing GDP and CO2 emissions per capita from 1970 to 2020 using a panel of 136 countries. We estimate both the short- and long-run income elasticities of CO2 emissions across various regions and for rolling time periods. The analysis focuses on Latin America and the Caribbean, aggregating and disaggregating data by region and introducing alternative measures of CO2 emissions. Though our findings confirm the existence of the EKC at the global level, we do not find evidence of it for all regions. A monotonic positive relationship between income and emissions is observed for Latin America and the Caribbean. We also find that, in most cases, the income elasticity of production-based emissions is lower than that of consumption-based emissions. This distinction is particularly pronounced in the Latin American and Caribbean region, where the income elasticity of consumption-based emissions is estimated at 0.95, as opposed to 0.56 when using a production-based measure.
dc.format.extent41
dc.identifier.doihttp://dx.doi.org/10.18235/0012943
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Green-or-Growth-Understanding-the-Relationship-between-Economic-Growth-and-CO2-Emissions.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectGreenhouse Gas Emission
dc.subjectEconomic Development
dc.subjectGross Domestic Product
dc.subjectLand Use
dc.subjectIntegration and Trade
dc.subject.jelcodeC33 - Panel Data Models • Spatio-temporal Models
dc.subject.jelcodeO11 - Macroeconomic Analyses of Economic Development
dc.subject.jelcodeO13 - Agriculture • Natural Resources • Energy • Environment • Other Primary Products
dc.subject.jelcodeO44 - Environment and Growth
dc.subject.keywordsCO2 emissions;economic growth;environmental Kuznets curve;Latin America and the Caribbean
idb.identifier.pubnumberIDB-TN-02930
idb.operationRG-T4078
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