Urbanization and Carbon Emissions in India and China

Abstract

This article understands, from an empirical perspective, the determinants of carbon emissions, using internationally comparable data, and cross-national regressions for India and China. Next, it explores the relationship between urban land use regulations and carbon emissions in India’s cities. Urbanization has no impact on carbon emissions per capita or per unit of geographical area. Electricity consumption in China and electricity produced from coal in India have a positive effect on carbon emissions. GDP per capita has a positive effect in India and not so in China, but per capita GDP squared has a negative impact on emissions in both the countries. Does this imply that urbanization should be ignored in the two countries? The answer is no, because a city’s urban form, to which policy contributes, is correlated with carbon emissions. More suburbanized cities which sprawl more also emit more carbon. India’s land use regulations relating to building height restrictions are conservative, hence Indian cities sprawl, which lead to carbon emissions. Hence, the focus of urban policy has to be on the development of compact cities. The article concludes with caveats of the data.