Carbon Emissions and Economic Growth in South Africa: A Quantile Regresison Analysis

Abstract

Of recent carbon emissions have become an increasing concern for economies worldwide. In this study we investigate the relationship between carbon emissions and economic growth for the South African economy, one of the largest emitters of carbon dioxide worldwide. We employ the quantile regression methodology which is applied to annual data covering a period of 1970 to 2014. Our empirical results indicate that very low levels of carbon emissions are most beneficial towards economic growth. Our results thus encourage policymakers to continue to embark on energy efficiency programmes which specifically target lower levels of carbon pollution.Keywords: Carbon Emissions; Economic growth; Environmental Kuznets curve; South Africa; Quantile regressions.JEL Classifications: C13; C32; C51; Q43; Q53.