Does Fiscal Policy Influence Per Capita CO2 Emission?

Author(s):  
Sacchidananda Mukherjee ◽  
Debashis Chakraborty

Encouraging economic activities is a major motivation for countries to disburse subsidies, but such transfers may also lead to sustainability and climate change related concerns. Through a cross-country empirical analysis involving 131 countries over 1990-2010, the present analysis observes that higher proportional devolution of budgetary subsidies lead to higher CO2 emissions. The results demonstrate that structure of economy is a crucial determinant for per capita CO2 emission, as countries having higher share in agriculture and services in GDP are characterized by lower per capita CO2 emission and vice versa. The empirical findings also underline the importance of the type of government subsidy devolution on CO2 emissions. Countries having high tax-GDP ratio are marked by lower per capita CO2 emission, implying that government budgetary subsidy is detrimental for environment whereas tax is conducive for sustainability. The analysis underlines the importance of limiting devolution of subsidies both in developed and developing countries.

2013 ◽  
Vol 13 (10) ◽  
pp. 5189-5203 ◽  
Author(s):  
R. Wang ◽  
S. Tao ◽  
P. Ciais ◽  
H. Z. Shen ◽  
Y. Huang ◽  
...  

Abstract. High-resolution mapping of fuel combustion and CO2 emission provides valuable information for modeling pollutant transport, developing mitigation policy, and for inverse modeling of CO2 fluxes. Previous global emission maps included only few fuel types, and emissions were estimated on a grid by distributing national fuel data on an equal per capita basis, using population density maps. This process distorts the geographical distribution of emissions within countries. In this study, a sub-national disaggregation method (SDM) of fuel data is applied to establish a global 0.1° × 0.1° geo-referenced inventory of fuel combustion (PKU-FUEL) and corresponding CO2 emissions (PKU-CO2) based upon 64 fuel sub-types for the year 2007. Uncertainties of the emission maps are evaluated using a Monte Carlo method. It is estimated that CO2 emission from combustion sources including fossil fuel, biomass, and solid wastes in 2007 was 11.2 Pg C yr−1 (9.1 Pg C yr−1 and 13.3 Pg C yr−1 as 5th and 95th percentiles). Of this, emission from fossil fuel combustion is 7.83 Pg C yr−1, which is very close to the estimate of the International Energy Agency (7.87 Pg C yr−1). By replacing national data disaggregation with sub-national data in this study, the average 95th minus 5th percentile ranges of CO2 emission for all grid points can be reduced from 417 to 68.2 Mg km−2 yr−1. The spread is reduced because the uneven distribution of per capita fuel consumptions within countries is better taken into account by using sub-national fuel consumption data directly. Significant difference in per capita CO2 emissions between urban and rural areas was found in developing countries (2.08 vs. 0.598 Mg C/(cap. × yr)), but not in developed countries (3.55 vs. 3.41 Mg C/(cap. × yr)). This implies that rapid urbanization of developing countries is very likely to drive up their emissions in the future.


2014 ◽  
Vol 2014 ◽  
pp. 1-11
Author(s):  
Sacchidananda Mukherjee ◽  
Debashis Chakraborty

Countries disburse subsidies with various motivations, for example, to promote industrial development, facilitate innovation, support national champions, and ensure redistribution. The devolution of subsidies may however also encourage economic activities leading to climate change related concerns, reflected through higher greenhouse gases (GHGs) emissions, if such activities are conducted beyond sustainable point. Through a cross-country empirical analysis involving 131 countries over 1990–2010, the present analysis observes that higher proportional devolution of budgetary subsidies leads to higher CO2 emissions. The countries with higher CO2 emissions are also characterized by higher per capita GDP, greater share of manufacturing sector in their GDP, and higher level of urbanization. In addition, the empirical findings underline the importance of the type of government subsidy devolution on CO2 emission pattern. The analysis underlines the importance of limiting provision of subsidies both in developed and developing countries.


2017 ◽  
Vol 9 (7) ◽  
pp. 228 ◽  
Author(s):  
Ting Liu ◽  
Wenqing Pan

This paper combines Theil index method with factor decomposition technique to analyze China eight regions’ inequality of CO2 emissions per capita, and discuss energy structure, energy intensity, industrial structure, and per capita output’s impacts on inequality. This research shows that: (1) The trend of China regional carbon inequality is in the opposite direction to the per capita CO2 emission level. Namely, as the per capita CO2 emission levels rise, regional carbon inequality decreases, and vice versa. (2) Per capita output factor reduces regional carbon inequality, whereas energy structure factor and energy intensity factor increase the inequality. (3) More developed areas can reduce the carbon inequality by improving the energy structure, whereas the divergence of energy intensity in less developed areas has increased to expand the carbon inequity. Thus, when designing CO2 emission reduction targets, policy makers should consider regional differences in economic development level and energy efficiency, and refer to the main influencing factors. At the same time, upgrading industrial structure and upgrading energy technologies should be combined to meet the targets of economic growth and CO2 emission reduction.


2020 ◽  
Vol 58 (1) ◽  
pp. 129-175 ◽  
Author(s):  
Paul Johnson ◽  
Chris Papageorgiou

We examine the record of cross-country growth over the past fifty years and ask if developing countries have made progress on closing the income gap between their per capita incomes and those in the advanced economies. We conclude that, as a group, they have not and then survey the literature on absolute convergence with particular emphasis on that from the last decade or so. That literature supports our conclusion of a lack of progress in closing the income gap between countries. We close with a brief examination of the recent literature on cross-individual distribution of income, which finds that despite the lack of progress on cross country convergence, global inequality has tended to fall since 2000. ( JEL E01, E13, O11, O47, F41, F62)


revistapuce ◽  
2019 ◽  
Author(s):  
Fander Falconí ◽  
Rafael Burbano ◽  
Pedro Cango ◽  
Jesús Ramos-Martín

The rate of CO2 emissions concentration in the atmosphere increasesthe likelihood of significant impacts on humankind and ecosystems. Theassumption that permissible levels of greenhouse gas emissions cannot exceed the global average temperature increase of 2 ºC in relation to pre-industrial levels remains uncertain. Despite this uncertainty, the direct implication is that enormous quantities of fossil fuels have, thus far, wrongly been counted as assets by hydrocarbon firms as they cannotbe exploited if we want to keep climate under certain control. These are the socalled “toxic assets”. Due to the relationship among CO2 emissions, GDP, energy consumption, and energy efficiency, the concept of toxic assets can be transferred to toxic income, which is the income level that would generate levels of CO2 emissions incompatible with keeping climate change under control. This research, using a simulation model based on country-based econometric models, estimated a threshold for income per capita above which the temperature limit of 2 ºC would be surpassed. Under the business as usual scenario, average per capita income would be $14,208 (in constant 2010 USD) in 2033; and underthe intervention scenario, which reflects the commitments of the COP21 meeting held in Paris in December 2015, the toxic revenue would be $13,433 (in constant 2010 USD) in 2036.


2021 ◽  
Vol 8 (4) ◽  
pp. 513-521
Author(s):  
Selim İnançlı ◽  
Mustafa Torusdağ

Due to rapid technological development and increase in economic activities, environmental problems such as global warming and climate change, CO2 emission, environmental pollution are among significant global issues. In recent years, Eco-innovations, which are intended to benefit the environment and contribute to environmental sustainability, bring energy by saving technology, adding a new dimension to the concept of innovation as well as bringing its environmentalist face to the fore. In this study, the relationship between innovation, CO2 emissions and renewable energy for the 1990-2019 period for Turkey was examined and analyzed with Bayer-Hanck (2012) cointegration test together with Toda-Yamamoto (1995) and Hacker-Hatemi-J (2006) causality tests. According to Bayer-Hanck (2012) cointegration test, it was concluded that the variables are cointegrated in the long run. In line with the overlapping findings of the causality analyses of Toda Yamamoto (1995) and Hacker-Hatemi-J (2006), it was concluded that there is a one-way causality relationship from CO2 emissions to renewable energy consumption.


Energies ◽  
2018 ◽  
Vol 11 (9) ◽  
pp. 2209 ◽  
Author(s):  
Frauke Urban ◽  
Johan Nordensvärd

Low carbon energy transitions are important to mitigate climate change, reduce air pollution, and reduce fossil fuel resource depletion. The Nordic countries (Denmark, Finland, Iceland, Norway, Sweden) are seen as leaders in low carbon energy transitions. This paper provides a comparative data analysis of low carbon energy transitions in the Nordic countries from the 1960s to 2015, and assesses evidence of the Environmental Kuznets Curve (EKC). The paper finds that the EKC has been observed in Denmark, Iceland, and Sweden in terms of total CO2 emissions, but not in Norway and Finland. For per capita CO2 emissions, there is evidence for the EKC in Denmark, Finland, Iceland, and Sweden, but not for Norway. For energy use per capita, the EKC is only observed for Denmark, while improvements are needed for the other countries. Norway is an outlier, in comparison with the other Nordic countries, hence the country should implement more stringent climate change mitigation policies to reduce its emissions. Overall, the research suggests that the Nordic countries, particularly Denmark, Iceland, and Sweden, can provide valuable lessons for national, regional, and global low carbon energy transitions.


Author(s):  
Hasan Hüseyin Yildirim

Following the 19th century Energy became an important and indispensable input for production and consumption activities all over the world. In the mean time, Energy has become a very determinant factor for growth for national economies. In this study, we aim to investigate the relationship between economic growth and CO2 emission for OECD countries. Panel data method and cointegration tests will be employed to analyze OECD member countries over the period 1960-2014. GDP per capita will be the Proxy for the economic growth and CO2 emissions (metric tons per capita) will be taken for CO2 emission on yearly basis.


2020 ◽  
Vol 12 (21) ◽  
pp. 9175
Author(s):  
Anny Key de Souza Mendonça ◽  
Silvio Aparecido da Silva ◽  
Luísa Zeredo Pereira ◽  
Antonio Cezar Bornia ◽  
Dalton Francisco de Andrade

Background: Brazil, one of the largest greenhouse gas emitting countries in the world, emitted approximately 2 billion gigatonnes of carbon dioxide (CO2) in 2018. This data is practically the same recorded in the previous year, suggesting that the country’s trajectory of CO2 emissions is stabilized. Methods: This study presents an overview of environmental protection and climate change mitigation policies adopted in Brazil, as well as makes use the multilevel regression modeling technique to investigate the relationship between economic activities variables in relation to CO2 emissions over the years of 1970 to 2018 in all Brazilian states. Results: The results show that the CO2 emissions in the states have the same behavior as the timeline of the change in land use. Conclusions: The public policies and actions by society and the private sector were fundamental to the reduction verified from the year of 2004 that followed until 2010, both in CO2 emissions and in the change in land use and forests. As of this year, there has been a trend towards stability in CO2 emissions. Another important characteristic is that even with a drop in the number of deforestation, the production variables continued to grow, which shows that there may be an increase in production activities, while there is a reduction in deforestation and in CO2 emissions.


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