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Carbon Emissions and Economic Growth: Production-based versus Consumption-based Evidence on Decoupling

Listed author(s):
  • Goher-Ur-Rehman Mir

    ()

    (Ecofys Consulting, Kanaalweg 15G, 3526 KL Utrecht, The Netherlands)

  • Servaas Storm

    ()

    (Delft University of Technology, The Netherlands)

Registered author(s):

    We assess the Carbon-Kuznets-Curve hypothesis using internationally consistent and comparable production-based versus consumption-based CO2 emissions data for 40 countries (and 35 industries) during 1995-2007 from the World Input Output Database (WIOD). The estimates for per capita CO2 emissions are truly comprehensive as these include all carbon emissions embodied in international trade and global commodity chains. Even if we find evidence suggesting a decoupling of production-based CO2 emissions and growth, consumption based CO2 emissions are monotonically increasing with per capita GDP. We draw out the implications of these findings for climate policy and binding emission reduction obligations.

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    Paper provided by Institute for New Economic Thinking in its series Working Papers Series with number 41.

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    Length: 34 pages
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    Handle: RePEc:thk:wpaper:41
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