Economic Growth-CO2 Emission Relationship in OECD and Non-OECD Countries: A Panel Data Analysis for the Period between 1990-2011

Abstract

Economic growth brings about environmental pollution. As from the second half of the 20th century, analyses on the environmental negative externality arising from the economic growth have been accelerated. Certain steps have been taken in order to protect the environment by international organizations having emerged upon the recognition of environment as a variable of economic growth. Environmental sensitivity has come into prominence in the economic growth and economic development process particularly through United Nations Millennium Declaration, Kyoto Protocol, International Environmental Action Plans and national practices of countries. In scope of this study, the relationship between national income and CO₂ emission is tested in consideration of the data between the years 1990-2011 in 44 countries, out of which 22 are OECD countries and 22 are Non-OECD countries. It is determined in consequence of panel data analysis that there is a strong relationship between the national income and CO₂ emission and Environmental Kuznets Curve in the shape of inverted-U for 44 countries.