ECONOMETRIC MODELING OF CO2 EMISSIONS IN TOP DEVELOPED AND DEVELOPING COUNTRIES

The effects of climate change are being felt in all countries of the world and these impacts have been intensified in recent decades. With the progress of industrialization, the “greenhouse effect” caused by CO2 and other greenhouse gas (GHG) emission has gradually attracted the government’s attention. In order to deal with the global climate crisis, many studies have been carried out. In this study, the causality links between CO2 emissions, agriculture, energy use, industrialization, electric power usage, foreign direct investment net inflows (FDI), GDP, and urbanization in 12 top developed and developing countries and the time period of 1993-2014 are investigated. A panel model was used in this study based on the environmental Kuznets curve (EKC) hypothesis and the dynamic OLS (DOLS) approach. The results show that industry value, electricity, energy consumption, and urbanization are major factors that increase CO2 emission in the long run. Thus, it is important for these countries to examine the requirements for investment to promote environmental protection and increase technological instruments to reduce environmental damage.