CO2 Intensity and GDP per Capita

14 Pages Posted: 14 Dec 2018

See all articles by Rognvaldur Hannesson

Rognvaldur Hannesson

Norwegian School of Economics (NHH); Norwegian School of Economics (NHH) - Department of Economics

Date Written: December 12, 2018

Abstract

The relationship between CO2 intensity and GDP per capita is studied. Most rich countries show falling CO2 intensity over time and a negative correlation with GDP per capita. Many poor and medium rich countries show the opposite, a positive time trend and a positive correlation with GDP per capita. For the majority of countries with a negative correlation between CO2 intensity and GDP per capita a non-linear function fits the data better than a linear one, implying that CO2 intensity falls at a diminishing rate as countries get richer. Hence, economic growth will not by itself go very far in reconciling economic growth and reductions in CO2 emissions. There are indications that poor and medium rich countries experience a boost in CO2 intensity as they embark on industrialization. This will also make it harder to reconcile economic growth and cuts in CO2 emissions.

Keywords: Carbon dioxide, economic growth, CO2 intensity

JEL Classification: O44, Q43, Q54

Suggested Citation

Hannesson, Rognvaldur, CO2 Intensity and GDP per Capita (December 12, 2018). NHH Dept. of Business and Management Science Discussion Paper No. 2018/16, Available at SSRN: https://ssrn.com/abstract=3301313 or http://dx.doi.org/10.2139/ssrn.3301313

Rognvaldur Hannesson (Contact Author)

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway
+47 55 959 260 (Phone)

Norwegian School of Economics (NHH) - Department of Economics

Helleveien 30
N-5035 Bergen
Norway

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