Antecedents To Climate Change: Study Of Top Economies

Abstract

This paper intends to explain the significance and implications of climate change across developed and developing nations. We intend to explore the association between carbon emission and economic growth for three top economies the USA, China and India using VECM. Further, various mitigation strategies have also been suggested to curb the effects of climate change. Carbon emission is granger causing economic growth in the Indian context only. The coefficient of DDCO is -0.37 and it is significant at 5 percent level. It suggests that a rise in carbon emission by one percent leads to decline in GDP by 0.37 percent keeping other things constant.  The effect of carbon emission is significant for India only, but not for the USA and China.