The champagne curve of climate and development inequalities

Thomas Porcher, R.-H. Boroumand, François Gemenne, A. Giraldi and Simon Porcher
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Thomas Porcher: CERC - CERC - Centre d'Études et de Recherches Comparatistes - EA 172 - Université Sorbonne Nouvelle - Paris 3, ESG Research Lab - ESG Management School
François Gemenne: IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris, CEARC - Cultures, Environnements, Arctique, Représentations, Climat - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines, médialab - médialab (Sciences Po) - Sciences Po - Sciences Po
Simon Porcher: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: The article examines the correlation between per capita consumption-based CO2 emissionsand the Human Development Index (HDI). The relationship follows a ‘Champagne Curve'resembling champagne spraying from a freshly sabred bottle: initially, HDI rises withemissions but levels off beyond a certain threshold. Countries with low HDIs (below 0.6)exhibit relatively uniform per capita CO2 emissions, whereas those with higher HDIs (above0.8) show much greater variation. Our findings indicate that beyond a certain HDI level,additional carbon consumption no longer contributes to well-being. This suggests thatonce a country reaches a high level of development, energy-saving and efficiency measurescan be implemented without reducing individual well-being. Moreover, our results high-light the need for a differentiated approach to climate policy by categorizing countries intothree groups: advanced, moderate, and limited transformation capacity. This classificationcould facilitate a more equitable implementation of climate policies, such as carbonpricing, helping to combat global warming while easing international negotiations.

Date: 2025
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Published in Applied Economics Letters, 2025, 1 (9), ⟨10.1080/13504851.2025.2476752⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05352143

DOI: 10.1080/13504851.2025.2476752

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