Can Natural Factors Explain Any Cross-Country Differences in Carbon Dioxide Emissions?

Abstract

This articles examines what role natural factors play in explaining cross-country differences in carbon dioxide emissions. Natural factors mean here differences in the climatic conditions, the transportation requirements as well as in the availability of renewable and fossil fuel resources. While income remains the main variable, regression results show that natural factors contribute significantly to an explanation of cross-country differences in carbon dioxide emissions. Furthermore, drastic differences in natural conditions can lead to substantial differences in predicted emission requirements for individual countries at approximately the same level of income.

Keywords: weather, temperature, renewable and fossil resources, transportation, carbon dioxide emissions

JEL Classification: Q2, Q3, Q4