Examining the relationship between economic growth and
environment quality – particularly measured by carbon dioxide
(CO2) emissions – has been an active field of empirical research
in environmental economics over the past decade. Early research
has typically concentrated on the effect of income growth and
energy consumption on CO2 emissions, referred to as the growthenergy-
CO2 emissions nexus (Table 1). Zhang and Cheng [3], for
example, assess the effects of energy consumption and output on
CO2 emissions in China; they conclude that an increase in energy
consumption induced by economic growth leads to an increase
in CO2 emissions. Baek and Kim [8] also examine the growth-energy-
CO2 emissions nexus in G-20 economies; they find that growth
reduces (increases) CO2 emissions in the developed (developing)
member countries.