Presentation is loading. Please wait.

Presentation is loading. Please wait.

CO 2 Emissions and Economic Development Binta Sidibe & Amarachi Okorigbo University of Wisconsin-Superior.

Similar presentations


Presentation on theme: "CO 2 Emissions and Economic Development Binta Sidibe & Amarachi Okorigbo University of Wisconsin-Superior."— Presentation transcript:

1 CO 2 Emissions and Economic Development Binta Sidibe & Amarachi Okorigbo University of Wisconsin-Superior

2 Introduction Nations around the world pay high costs for their economic development Human activities cause pollution Pollution is increasing around the world When would development help reduce pollution?

3 Research Questions  Is there a relationship between pollution and the level of economic development?  If the relationship exists, what functional form characterizes it best?  Linear/monotonically increasing  Quadratic/concave

4 Theoretical Models of Pollution IPAT  Ehrlich and Holdren (1971)  Monotonically increasing relationship  I= Impact of human activities on the environment P= Population Size A= Affluence, measured here by RGDPPC T= Technology used to produce a unit for consumption  Stern (2003)  Curve Shifts down over time Environmental Kuznets Curve  Grossman and Krueger (1991)  Quadratic relationship  Early stages of economic development are characterized by degradation and pollution.  Turning point where they begin to care more about the environment Real GDP per capita Pollution Real GDP per capita Pollution

5 Measures of Pollution  Water and Land Pollution  Territory-specific  Air pollution  Fewer boundaries  Negative worldwide externalities of air pollution  Main Measure: CO2 Emissions

6 Research Hypotheses 1. There exists a relationship between real GDP per capita and CO2 emissions 2. The relationship between the CO2 emissions and real GDP per capita is quadratic

7 Data: Descriptive Statistics

8 Data: Graph Matrix

9 Empirical Model  If hypothesis 1 holds, β 1 should be positive and statistically significant  If hypothesis 2 holds, β 2 should be negative and statistically significant

10 Empirical Model CO 2 emissions A B Real GDP pc

11 Empirical Results: Robust LSDV ***, **, * statistically significant coefficients at 1%, 5%, 10% variable12345 constant-12.09***-18.86***-16.47***-9.79***-11.69* lnrgdppc1.54***1.19***2.89***1.60***2.69*** lnrgdppc2-0.04*** *** ** lnpop0.48*** lncars0.07** lnforestarea-0.28*-0.16 lncoalrents0.04** lnoilrents0.06 lnforestrents-0.08 No of obs R-squared

12 Analysis of Results  There is a statistically significant positive relationship between the CO 2 emissions and real GDP per capita  The quadratic relationship between CO2 emissions and real GDP per capita is negative and statistically significant in 3 out of 5 regressions  While there is evidence to support the Environmental Kuznets Curve theory, such evidence is not robust

13 Analysis of Results: Regression 5 CO 2 emissions A B $41,942 $83,884

14

15


Download ppt "CO 2 Emissions and Economic Development Binta Sidibe & Amarachi Okorigbo University of Wisconsin-Superior."

Similar presentations


Ads by Google