Energy consumption, income and CO2 emissions in Latin America

I describe and compare the environment policies of European Union and of 12 Latin Americans economies. For this, I use common statistical methods, such as non-parametric tests, convergence analysis (Beta and Sigma) and panel data, in order to verify the hypothesis that emissions and energy use in Latin America has been increasing since the mid-20th century. The statistical tests used confirm the proposed hypothesis. I also rely upon the Environmental Kuznets Curve- whereby economies that are at the growth stage are more focused on achieving the latter than they are on environmental concerns and those which have already achieved growth focus more on environmental concerns-to take an alternative approach by introducing the role of economic growth in the evolution of energy consumption and emissions. This chapter reaches the conclusion that energy consumption and pollutant emissions in LA, in per capita terms, are converging. This suggests that the initial levels of the variables help to explain why some countries have increased emissions (in this case, energy consumption) to a greater extent than other economies in the region. Evidence of convergence is also found, as well as a monotonic relationship between the level of pollution and the level of development (consistent with the Environmental Kuznets Curve).