CO2 emissions and GDP

Abstract

PurposeThe purpose of this paper is to show how CO2 equivalent emissions are closely linked with economic development, over time and also across countries.Design/methodology/approachEmissions data from energy information administration were subjected to macro analysis, regressed upon GDP data, longitudinally and cross‐sectionally.FindingsThe conversion factor linking energy to output to pollution is estimated over time and between economies. It is today far too high, making global climate change almost certain.Practical implicationsGlobal environmental coordination is very difficult to achieve, given the nature of this gigantic PD game in combination with weak institutions for policy making and implementation. The only way to stabilise CO2 emissions is to focus upon the conversion factor linking energy to output to pollution.Originality/valueThe paper shows the clear and Juggernaut type connections between energy‐economic output‐CO2 emissions.