Abstract

The relationship between Carbon Dioxide (CO2) emissions, temperature change, and growth in Germany is examined with the use of a system of differential equations and data for the period 1991–2016. Two models are examined: the first considers that growth, measured as the proportionate change in the per capita Gross Domestic Product (GDP) is affected by per capita CO2 emissions and the level of per capita GDP. Also, the proportionate change in per capita CO2 emissions is affected by the level of the per capita GDP and the level of per capita CO2 emissions. The second model considers that growth is affected by the per capita CO2 emissions, temperature, and the level of per capita GDP. Also, the proportionate change in per capita CO2 emissions is affected by the level of the per capita GDP and the level of per capita CO2 emissions. Finally, in this model, the proportionate change in temperature is affected by the level of the per capita GDP and the level of per capita CO2 emissions. It was found that the signs of the estimated coefficients in the two models are the expected ones.

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