Carbon Emissions and Economic Growth: Production-based versus Consumption-based Evidence on Decoupling

Goher-Ur-Rehman Mir () and Servaas Storm ()
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Goher-Ur-Rehman Mir: Ecofys Consulting, Kanaalweg 15G, 3526 KL Utrecht, The Netherlands
Servaas Storm: Delft University of Technology, The Netherlands

No 41, Working Papers Series from Institute for New Economic Thinking

Abstract: We assess the Carbon-Kuznets-Curve hypothesis using internationally consistent and comparable production-based versus consumption-based CO2 emissions data for 40 countries (and 35 industries) during 1995-2007 from the World Input Output Database (WIOD). The estimates for per capita CO2 emissions are truly comprehensive as these include all carbon emissions embodied in international trade and global commodity chains. Even if we find evidence suggesting a decoupling of production-based CO2 emissions and growth, consumption based CO2 emissions are monotonically increasing with per capita GDP. We draw out the implications of these findings for climate policy and binding emission reduction obligations.

Keywords: Carbon Kuznets Curve; Climate change; Economic growth; Production-based CO2 emissions, Consumption-based CO2 emissions; Decoupling. (search for similar items in EconPapers)
JEL-codes: F64 Q54 Q55 Q56 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2016-04
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:thk:wpaper:41

DOI: 10.2139/ssrn.2772131

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