Examining the Decoupling Phenomenon Between Economic Growth and Carbon Dioxide Emissions: Empirical Study on Four Countries During the Period (1990-2020)

Document Type : Original Article

Authors

Economics Department- Faculty of Economics and Political Sciences- Cairo University- Egypt

Abstract

With the growing concern for climate change and minimizing environmental degradation, the relation between CO₂ emissions and economic growth has been grabbing attention as an important matter to look into and study. In this paper, the decoupling states between CO₂ emissions and economic growth is discussed and this phenomenon is examined in two developed countries (USA & Japan) and two developing countries (Egypt & India) stating the calculated values, based on the adopted methodology, and defining each decoupling state of each country in six time periods from 1990 to 2020. The causes of the decoupling state in each country are discussed with exploring the reasons for some spikes in CO₂ emissions, while maintaining economic growth, or in some cases declining economic growth. Finally, the trend of the decoupling forms in each country is depicted based on Environmental Kuznets Curve (EKC), Brundtland Curve and the Daly curve. The USA achieved a level of decline in CO₂ emissions while maintaining positive GDP growth rates, In Japan, the level of decoupling can be best described by the Daly curve in the first couple of periods. Observing Egypt, the Daly curve described the first couple of periods only, while in India, Brundtland’s curve can describe India’s situation. Based on these empirical results, important policy implications are suggested.

Keywords