This book investigates the relationship between environmental degradation and income focusing
on carbon dioxide (CO 2 ) emissions from around the world to explore the possibility of
sustainable development under global warming. Although many researchers have tackled this
problem by estimating the Environmental Kuznets Curve (EKC) unlike the approach to sulfur
dioxide emissions there seems to be little consensus about whether EKC is formed with regard
to CO 2 emissions. Thus EKC is one of the most controversial issues in the field of
environmental economics. This book contributes three points with academic rigor. First an
unbalanced panel dataset containing over 150 countries with the latest CO 2 emission data
between 1960 and 2010 is constructed. Second based on this dataset the CO 2 emission-income
relationship is analyzed using strict econometric methods such as the dynamic panel model.
Third as it is often pointed out that some factors other than income affect CO 2 emission
several variables were added to the estimation model to examine the effects of changes of
industrial structure energy composition and overseas trade on CO 2 emission.
