On the relations among CO₂ emissions, gross domestic product, energy consumption, electricity use, urbanization, and income inequality for a sample of 134 countries

This paper is aimed at examining the relations among CO₂ emissions, gross domestic product (GDP) growth, energy consumption, electricity use, urbanization, and income inequality for a sample of 134 countries by using principal components analysis, Granger causality, vector error correction models, and panel vector autoregression models. Data was obtained from the World Bank with annual observations from 1990 to 2014. The chosen countries are those with 10 years or more of concurrent data of the variables under study. The main empirical findings suggest a Kuznets curve between CO₂ emissions per capita and GDP per capita. In addition, CO₂ emissions have a long-term relationship with economic growth, energy use, electricity use, urbanization, and inequality. Finally, in the short run, CO₂ emissions depend on economic growth, urbanization, and income inequality.