Assessment of factors affecting the level of carbon dioxide emissions

Abstract

Subject. Climate change worries not only environmentalists fighting for the preservation of glaciers and biodiversity on the planet, but also economists, since social development is one of the components of the economic development of the whole society. It is highly advisable to conduct a comprehensive analysis of the impact of various factors on the country's climate policy and its actions to reduce carbon dioxide emissions. Objectives. The study aims to assess the impact of various factors on the level of CO2 emissions. Methods. We performed a regression analysis based on panel data. With the help of correlation analysis, we selected factors, according to which we built three regression models. After statistical tests (the Wald, Breusch-Pagan, and Hausman tests), we chose a model with fixed effects. The model is well suited, since we considered a specific set of 79 countries with non-zero carbon dioxide emissions in a certain period of time. The statistical database was built on data from 1965 to 2021. Results. The constructed model demonstrated that Resource consumption is the largest contributor to carbon dioxide emissions. Other significant factors affecting the level of CO2 emissions are GDP and population. Conclusions. The findings can help in the development of more effective strategies for reducing emissions, combating climate change, and improving the energy efficiency of companies.