Impact of population, age structure, and urbanization on carbon emissions/energy consumption: evidence from macro-level, cross-country analyses

Abstract

This review summarizes the evidence from cross-country, macro-level studies on the way demographic factors and processes—specifically, population, age structure, household size, urbanization, and population density—influence carbon emissions and energy consumption. Analyses employing time-variant data have produced great variance in population elasticity estimations—sometimes significantly greater than one, sometimes significantly less than one; whereas, cross-sectional analyses typically have estimated population elasticities near one. Studies that have considered age structure typically have used standard World Bank definitions and mostly have found those variables to be insignificant. However, when researchers have considered levels of disaggregation that approximate life-cycle behavior like family size, they have uncovered relationships that are complex and nonlinear. Average household size has a negative relationship with road energy use and aggregate carbon emissions. Urbanization appears positively associated with energy consumption and carbon emissions. Higher population density is associated with lower levels of energy consumption and emissions.