The relationship between carbon dioxide emission and economic growth: Hierarchical structure methods

Abstract

Carbon dioxide (CO2) emission has an essential role in the current debate on sustainable development and environmental protection. CO2 emission is also directly linked with use of energy which plays a focal role both for production and consumption in the world economy. Therefore the relationship between the CO2 emission and economic growth has a significant implication for the environmental and economical policies. In this study, within the scope of sociophysics, the topology, taxonomy and relationships among the 33 countries, which have almost the high CO2 emission and economic growth values, are investigated by using the hierarchical structure methods, such as the minimal spanning tree (MST) and hierarchical tree (HT), over the period of 1970–2010. The average linkage cluster analysis (ALCA) is also used to examine the cluster structure more clearly in HTs. According to their proximity, economic ties and economic growth, different clusters of countries are identified from the structural topologies of these trees. We have found that the high income & OECD countries are closely connected to each other and are isolated from the upper middle and lower middle income countries from the MSTs, which are obtained both for the CO2 emission and economic growth. Moreover, the high income & OECD clusters are homogeneous with respect to the economic activities and economic ties of the countries. It is also mentioned that the Group of Seven (G7) countries (CAN, ENG, FRA, GER, ITA, JPN, USA) are connected to each other and these countries are located at the center of the MST for the results of CO2 emission. The same analysis may also successfully apply to the other environmental sources and different countries.