Abstract

This paper offers estimates of the per-capita GDP growth trajectories consistent with zero growth in per-capita CO2 emissions using Ordinary Least Squares (OLS) and Instrumental Variables (IVs). The focus is on six developed economies (Canada, Germany, Italy, Japan, Singapore, and the United States) and six emerging economies (China, India, Indonesia, Malaysia, Mexico, and South Korea). To this end, we postulate a model linking the growth of per-capita CO2 emissions to per-capita GDP growth and technology. Given the parameter estimates, we use the model to estimate the growth rate of per-capita GDP that is consistent with zero growth in CO2 emissions.

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