Gibrat’s law for CO2 emissions revisited

Guillermo Peña, Miguel Puente-Ajovín and Fernando Sanz Gracia

Applied Economics Letters, 2025, vol. 32, issue 6, 825-829

Abstract: This study revises the results of two authors who concluded that Gibrat’s Law could not be rejected for CO2 emissions and per capita CO2 emissions. We revisit this topic using a more recent and distinct statistical methodology. Our main result is that Gibrat’s Law for CO2 emissions, both in absolute and in per capita terms, does not hold in a majority of cases. The fulfilment of Gibrat’s Law in this case seems to be a short-term phenomenon, in contrast to the patterns observed in cities within countries such as the USA.

Date: 2025
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DOI: 10.1080/13504851.2023.2289893

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