Abstract

Climate action is one of the most important issues in the modern world, with demographic, economic, personal, and long-term societal implications. The consumption of non-renewable energy has increased carbon emissions as the industrial revolution has progressed, which is the primary cause of climate action and global warming in the economic world. This study was undertaken to determine the relationship between carbon emissions (Co2), Gross Domestic Product (GDP), Industrial Value (IV), and Population (POP), in developed countries, over a period of 10 years, from January 1^st, 2010 to December 31^st, 2020. The impact of Co2 emissions and population growth on economic growth in developed countries was examined in this study. GDP and Co2 emissions were used as indicators of economic development and environmental degradation in the context of climate change, respectively. Statistical tools, for econometric analysis, employed Granger causality across all variables. According to the findings of Granger causality, increasing GDP per capita reduced carbon dioxide emissions in the long run whereas increasing industrialization increased carbon dioxide emissions. In developed countries, economic growth is regarded as critical to meeting targets and providing financial assistance to developing countries. The study found a long-run relationship between all cointegrated variables.

JEL Classifications: E2, O1, O4, Q40, Q48

Climate action is one of the most important issues in the modern world, with demographic, economic, personal, and long-term societal implications. The consumption of non-renewable energy has increased carbon emissions as the industrial revolution has progressed, which is the primary cause of climate action and global warming in the economic world. This study was undertaken to determine the relationship between carbon emissions (Co2), Gross Domestic Product (GDP), Industrial Value (IV), and Population (POP), in developed countries, over a period of 10 years, from January 1^st, 2010 to December 31^st, 2020. The impact of Co2 emissions and population growth on economic growth in developed countries was examined in this study. GDP and Co2 emissions were used as indicators of economic development and environmental degradation in the context of climate change, respectively. Statistical tools, for econometric analysis, employed Granger causality across all variables. According to the findings of Granger causality, increasing GDP per capita reduced carbon dioxide emissions in the long run whereas increasing industrialization increased carbon dioxide emissions. In developed countries, economic growth is regarded as critical to meeting targets and providing financial assistance to developing countries. The study found a long-run relationship between all cointegrated variables.

JEL Classifications: E2, O1, O4, Q40, Q48