The impacts of economic growth, industrial production, and energy consumption on CO2 emissions: A case study of leading CO2 emitting countries

Abstract

This paper investigates the relationship between CO2 emissions per capita and their main drivers (economic growth, industrial production, and energy consumption). We focus on countries with the largest shares in global CO2 emissions per capita by applying panel regression with heterogeneous time trends. We found that best specification is none-effect panel regression with heterogeneous time trends. Our results reveal that energy consumption shows decisive positive evidence on CO2 emissions while economic growth and industrial production show weak positive evidence.

Keywords

• CO2 emissions
• Economics growth
• Panel regression