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CO 2 Emissions in G20 Nations through the Three-Sector Model

Author

Listed:
  • Kejia Yan

    (School of Management, Xiamen University, Xiamen 361005, China)

  • Rakesh Gupta

    (Department of Accounting, Finance and Economics, Griffith University, Nathan 4111, Australia)

  • Victor Wong

    (Department of Accounting, Finance and Economics, Griffith University, Nathan 4111, Australia)

Abstract

This paper examines the relationship between CO 2 emissions in three economic sectors of G20 member countries using the environmental IPAT model and STIRPAT model and validates the EKC hypothesis by comparing the results for developing and developed countries. The results confirm that there is a significant long-run equilibrium relationship between the three sectors (primary, secondary, and tertiary) and CO 2 emissions across the panel. Furthermore, the long-run elasticities suggest that the primary sector (agriculture) positively and negatively affects the CO 2 emissions of developing and developed economies, respectively. This finding proves that the development of agriculture is in line with the EKC hypothesis that a more developed economy will instead improve environmental degradation. Based on the findings, for each sector, we provide policymakers with suggestions to potentially curb CO 2 emissions without significantly compromising economic growth.

Suggested Citation

  • Kejia Yan & Rakesh Gupta & Victor Wong, 2022. "CO 2 Emissions in G20 Nations through the Three-Sector Model," JRFM, MDPI, vol. 15(9), pages 1-25, September.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:9:p:394-:d:907164
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    References listed on IDEAS

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    More about this item

    Keywords

    three-sector model; EKC; G20 nations; curbing CO 2 emissions; economic growth;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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