The relationship between economic growth and environmental impact is a topic that has largely been studied through the framework of the Environmental Kuznets Curve (EKC), which posits an inverted U-shape relationship between the two.
This study estimates the short- and long-term income elasticities of CO2 emissions across different regions and time periods. By disaggregating data and introducing alternative measures of CO2 emissions, the study aims to provide a nuanced understanding of the economic-environmental link.
It examines the EKC by exploring the relationship between GDP and CO2 emissions per capita from 1970 to 2020 across 136 countries, with a focus on Latin America and the Caribbean.