According to the theory of environmental Kuznets curve there is a relationship between carbon emissions and GDP. The relationship has an inverted U-shape. Carbon emissions rise initially and then decreases once a certain level of GDP is obtained. This essay interprets earlier studies in the field of environmental economics and uses public choice to seek answer on how the population acts on aggregate level. This essay analyses 115 countries in cross-sectional data. The analysis shows that there is a significant relationship between carbon dioxide emissions and GDP that is increasing at first and then decreases for a certain level of GDP. Democracy plays a significant role in the environmental Kuznets curve. For every level of GDP there is a lower emission of carbon as the degree of democracy increases while economic freedom is not significant in the analysis.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:sh-25380 |
| Date | January 2013 |
| Creators | Olsson, Jens |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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