The Relationship of Energy and CO2 Emissions with GDP per Capita in Colombia

Abstract

We analyze the relationship of CO2 emissions per capita and primary energy per capita with gross domestic product (GDP) per capita and other relevant variables in Colombia for the period 1971–2017. Two partial adjustment models are estimated through the seemingly unrelated regression equations method. There is a decrease in these environmental pressures during some years of the period. However, the results reject the environmental Kuznets curve hypothesis and indicate that economic growth is still linked to an increase in these environmental pressures in Colombia. Moreover, a linear relationship between both indicators and GDP per capita is not rejected. Several factors explain the changes in energy consumption and emissions over time, the policies applied being crucial. Some determinants that helped to control these environmental pressures are the change in primary energy source composition, which entailed primary energy savings and a reduction in CO2 emissions, as well as the regulations aimed at controlling CO2 emissions from the transport and industrial sectors.