Estimation of carbon emission using panel data analysis

Abstract

It is imperative to have a look at various sources of carbon emission one of the major greenhouse gases which have a substantial role in global climate change. Major part of the carbon emission is generated from anthropogenic sources, which is because of our economic activities inside the global life support system. Thus, it was of utmost important to identify major macroeconomic factors which can predict carbon emission from various sources in developed and developing countries. These macroeconomic factors in predicting carbon emission from various sources will play important role in considering informed climatic policy decisions and will have a major impact on policy makers, regulators, scientist and other stakeholders in legalizing global agreements in their own legal systems with proclaimed intention of mitigating climate change. Thus in order to achieve we have collected data from World Bank website on India, China, UK and USA for the time period from 1990 to2011. We used fixed effect model of panel data analysis in terms of pooled OLS using country specific dummy and their interaction with macroeconomic factors to allow intercept and slope coefficient to vary across countries. Thus estimating the panel data models effort has been made to establish the relationship between various environmental degradation indicators and macroeconomic factors in this study.