The Determinants of Greenhouse Gas Emissions: Empirical Evidence from Canadian Provinces

Abstract

The main objective of the present study is to examine the determinants of greenhouse gas emissions in Canada using panel data of 10 provinces from 1990 to 2019. The pooled ordinary least squares method is used to estimate the models. The main findings of the basic model show that provinces with larger populations, younger ages, and more income produce higher levels of greenhouse gas emissions. The results of the extended model (per capita greenhouse gas emissions as the dependent variable) show that only five factors (out of ten potential determinants identified)—oil production per capita, gas production per capita, motor vehicles registered per capita, electricity generation intensity, and heating degree days—are significant determinants of per capita greenhouse gas emissions. The results also reveal that the provinces with older populations have lower per capita greenhouse gas emissions in Canada. However, both trend variables played an important role in explaining the greenhouse gas emissions per capita in Canada. Moreover, there were no significant differences among the patterns of the per capita greenhouse gas emissions in Canada after 2005.