World economies’ progress in decoupling from CO2 emissions

Abstract

Abstract The relationship between economic growth and CO2 emissions has been analyzed testing the environmental Kuznets curve hypothesis, but traditional econometric methods may be flawed. An alternative method is proposed using segmented-sample regressions and implemented in 164 countries (98.34% of world population) over different periods from 1822 to 2018. Results suggest that while the association between GDP per capita and CO2 emissions per capita is weakening over time, it remains positive globally, with only some high-income countries showing a reversed association in recent years. While 49 countries have decoupled emissions from economic growth, 115 have not. Most African, American, and Asian countries have not decoupled, whereas most European and Oceanians have. These findings highlight the urgency for effective climate policies because decoupling remains unachieved on a global scale, and we are moving away from, rather than approaching, the Paris Agreement goal of limiting temperature increase to 1.5 °C above preindustrial levels.

Keywords

• Decoupling
• CO2 emissions
• Economic growth
• Environmental Kuznets curve
• Multicollinearity
• Segmented-sample regressions