Carbon emissions across income groups: exploring the role of trade, energy use, and economic growth

Abstract

This study investigates the interplay of trade openness, energy consumption, and gross domestic product (GDP) on carbon emissions across different income groups, analysing data from 163 countries from 2000 to 2019. Using panel regression and multiple linear regression techniques, the findings highlight energy consumption as the principal driver of carbon emissions across all income categories, underscoring its central role in environmental sustainability challenges. High-income countries, despite technological advancements, continue to exhibit substantial emissions due to their reliance on fossil fuels. In contrast low-income nations face difficulties in balancing economic growth with environmental sustainability, often lacking the resources to adopt cleaner energy alternatives. The study emphasises the urgent need for income-specific strategies to reduce carbon emissions, advocating for the widespread adoption of renewable energy sources and tailored policy interventions. These insights align with the United Nations Sustainable Development Goals, particularly SDG 13 (Climate Action), by promoting the integration of economic development with environmental stewardship. By addressing disparities across income levels, this research offers actionable recommendations for policymakers to support equitable and sustainable practices globally.