Kuznets in Sweden? : A study of the relationship between carbon dioxide emissions and income

• Main Author: Hanson Lundström, Elenor
• Format: Others
• Language: English
• Published: Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Nationalekonomi 2008
• Subjects: Environmental Kuznets curve; Carbon dioxide emissions; Energy consumption; Carbon intensity of energy; Energy-efficiency; Economics; Nationalekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-7879

    According to the Environmental Kuznets Curve (EKC), economic growth will eventually cause carbon dioxide emissions to decrease. Is this the case in Sweden? A time series covering the period 1800-1995 is used to analyze the relation between carbon dioxide emissions and income per capita in Sweden. The empirical results indicate that an EKC for carbon dioxide is highly likely to exist in Sweden for the examined period. To take the analysis further, a cross-section data set is employed to examine the relationship between carbon dioxide emissions, income per capita and 4 other potentially influential variables in 75 countries. Only carbon intensity of energy is significant for carbon dioxide emissions. This implies that the utilized energy source is of importance, and it is crucial to separate energy consumption from carbon dioxide emissions. Emissions is a matter of structural aspects such as the type of industry and production a country comprise, and what type of energy that is consumed; not merely the quantity of energy. Sweden has experienced a shift in production techniques and in energy supply, and the energy-efficiency has improved during the past 100 years. It is consequently plausible to believe that it is not a critical income per capita which decreases CO 2  emissions – it is the “right” energy sources, energy efficiency and improved technology.