Template-Type: ReDIF-Paper 1.0
Author-Name: Emanuel Kohlscheen
Author-X-Name-First: Emanuel
Author-X-Name-Last: Kohlscheen
Author-Name: Richhild Moessner
Author-X-Name-First: Richhild
Author-X-Name-Last: Moessner
Author-Name: Előd Takáts
Author-X-Name-First: Előd
Author-X-Name-Last: Takáts
Title: Growth, coal and carbon emissions: economic overheating and climate change
Abstract: We use a comprehensive database of 121 countries over the 1971-2016 period to study how macroeconomic factors drive carbon (carbon-dioxide) emissions. For this purpose, dynamic panel regressions are estimated. Carbon emissions rise with economic development, manufacturing activity, urbanization and increasingly with economic growth. In electricity generation, the use of coal, and to a lesser degree of oil, is associated with higher carbon emissions, while renewable energy use is already associated with lower national emissions in advanced economies. We also uncover a non-linearity: economic overheating is particularly harmful when coal use is more intensive. The results suggest that mitigating economic cycles might also reduce carbon emissions.
Length: 23 pages
Creation-Date: 2021-04
File-URL: https://www.bis.org/publ/work937.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work937.htm
File-Format: text/html
Number: 937
Keywords: carbon dioxide, climate change, coal, emissions, energy, environment, growth, pollution, urbanisation
Classification-JEL:O40, O44, Q00, Q40, Q50
Handle: RePEc:bis:biswps:937