CO2 intensity and GDP per capita. Issue 2 (1st November 2019)

• Record Type: Journal Article
• Authors: Hannesson, Rögnvaldur
• Is Part Of: International journal of energy sector management. Volume 14:Issue 2(2020)
• Page Start: 372
• Page End: 388
• Publication Date: 2019-11-01
• Subjects: CO2 emission -- Least square estimation -- Econometrics -- Mining industry -- Carbon dioxide -- Economic growth -- CO2 intensity -- Mineral production -- GDP -- Economic growth -- Dematerialization; N50 -- O13 -- Q32 -- O44 -- Q43 -- Q54; Energy industries -- Management -- Periodicals; 333.79068
• DOI: 10.1108/IJESM-02-2019-0011
• Languages: English
• ISSNs: 1750-6220

Abstract

Abstract : Purpose: To investigate whether CO2 intensity falls at a diminishing rate as countries grow richer. Design/methodology/approach: Regression of CO2 intensity on the gross domestic product (GDP) per capita, including squared and cubic terms, for a panel of countries and individual countries. Findings: CO2 intensity falls at a diminishing rate as countries grow richer. Originality/value: Many studies have found that CO2 intensity falls with GDP per capita, but whether it does so at a diminishing rate has not been investigated. This result suggests that structural changes in GDP (more services) as countries get richer will provide little or no help toward decarbonization. It is shown that the extraction of minerals critical for industrial production has increased on par with real GDP. This could explain why CO2 emissions fall at a diminishing rate.