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Polluting Emissions and GDP: Decoupling Evidence from Brazilian States

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  • João Tovar Jalles

Abstract

We provide a comprehensive analysis of the relationship between greenhouse gas (GHG) emissions and GDP in Brazil using both aggregate and state-level data. The trend or Kuznets elasticity is about 0.8 for Brazil, higher than that in advanced countries but below that of major emerging markets. The elasticity is somewhat higher for consumption-based emissions than for production-based emissions, providing evidence against the “pollution haven” hypothesis. Additional evidence comes from state-level data analysis where one can observe a great deal of heterogeneity but also some hope as far as decoupling is concerned. In addition to the trend relationship between emissions and output, we find that there does not seem to exist a cyclical relationship holding in Brazil at the aggregate level (despite having become more procyclical over time), but it does exist in a few states.

Suggested Citation

  • João Tovar Jalles, 2019. "Polluting Emissions and GDP: Decoupling Evidence from Brazilian States," Working Papers REM 2019/0104, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    • Handle: RePEc:ise:remwps:wp01042019
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    More about this item

    Keywords

    Green House Gas; Cycle; Environmental Kuznets Curve; Brazil; Regional analysis; Detrending; Filtering;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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