Economic and trade determinants of carbon emissions in the American region

Abstract

Balancing economic growth with sustainability has been a significant challenge over the past decades, largely due to the environmental damage caused by carbon emissions. This study investigates the relationship between energy consumption, gross domestic product (GDP), and trade openness and their impact on carbon emissions in 28 countries in the American region from 2000 to 2022. Using a multiple linear regression model for country-level analysis, the findings reveal diverse trends across the region. For instance, countries such as Antigua and Barbuda, Bolivia, Brazil, Chile, and Guatemala demonstrate a strong link between economic growth and increased carbon emissions. In contrast, developed nations such as the United States and Canada show signs of decoupling GDP growth from emissions, supporting the Environmental Kuznets Curve hypothesis, which suggests that higher income levels lead to reduced environmental degradation. The study highlights the importance of tailored, country-specific strategies to reduce emissions while promoting sustainable economic growth. A thorough understanding of the complex relationships between gross domestic product, energy consumption, trade openness, and carbon emissions will enable policymakers to devise strategies that balance ecological sustainability with socio-economic objectives.