Title: Determinants of production-based and consumption-based CO₂ emissions: a comparative analysis

Authors: Mamoudou Camara

Addresses: Department of Economics and Quantitative Methods, IESEG School of Management, 3 Rue de la Digue, 59000, Lille, France

Abstract: The aim of this paper is to compare production-based CO₂ emissions (PBE-CO₂) with consumption-based CO₂ emissions (CBE-CO₂), with particular focus on their determinants. The results reveal that several OECD countries have a negative trade balance in terms of CO₂ emissions. The decoupling analysis over 1990-2012 also shows that the degree of decoupling between economic growth and CO₂ emissions is less strong in terms of consumption-based emissions (CBE) than in terms of production-based emissions (PBE) for several OECD countries. Using panel data from 98 countries over the period 1990-2012, the results show that the elasticities (in absolute terms) of imports, exports and GDP per capita are larger on CBECO₂than on PBE-CO₂ for non-OECD countries. However, the coefficients estimated of independent variables have generally the same signs for both types of CO₂ emissions indicators.

Keywords: production-based emissions; CBE; consumption-based emissions; CO₂; decoupling; relative decoupling; absolute decoupling; carbon leakage; OECD; IPAT model; STIRPAT model; cross-sectional dependence; stationarity; DCCE estimator; AMG estimator; CCE estimator.

DOI: 10.1504/IJEP.2020.108362

International Journal of Environment and Pollution, 2020 Vol.67 No.1, pp.22 - 47

Accepted: 06 Jan 2020
Published online: 10 Jul 2020 *

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