Economic growth and CO2 emissions

This article considers a planner’s optimum control exercise with environmental pollution and derives a testable link between the growth rates of consumption and pollution. The link is then empirically estimated for the case of CO₂ emissions for a sample consisting of the union of top 25 countries in terms of CO₂ emissions, population and per capita GNP. The analysis suggests that the interrelationship between the growth rates of CO₂ emission and economic development is mostly significant for countries that have a high level of CO₂ emissions and population.