The relationships of carbon dioxide emissions and income in a newly industrialized economy

Abstract

This study investigates the carbon dioxide (CO₂) emissions patterns in coordination with the economic development of Taiwan. The resulting quadratic relationship between emissions and income are partly due to the structural change of energy supply in Taiwan, with the introduction of nuclear energy in 1980 to 1986. This relationship is quite unique and different from the N-shaped relationships in some developed countries (de Bruyn and Opschoor, 1997; Friedl and Getzner, 2003). The CO₂ emissions in Taiwan increase with the increasing imports of raw materials for economic activities and the increasing use of electricity. There is no evidence that the substantial increase of Taiwan's service sector contributed to slowing its CO₂ emissions.

Keywords:

• carbon dioxide emissions
• EKC
• Taiwan
• newly industrialized economy

JEL Classification:

• C22
• Q27
• O10
• Q54