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The Correlation Between CO2 Emissions and GDP in Bhutan - A Threat to Carbon Neutrality?

Wollnert, Sofia LU (2023) EOSK12 20231
Department of Economic History
Abstract
The nexus between environmental degradation and economic growth is becoming of greater importance globally and in order to limit global warming at an increase of 1.5 ° C there needs to be a net zero-transition towards carbon neutrality. The Kingdom of Bhutan has over the last decades experienced continuous economic growth while being carbon negative and adhering to its unique Gross National Happiness development framework. This study investigates the relationship between carbon dioxide emissions and gross domestic product in Bhutan and evaluates how Bhutan’s aspirations toward economic growth might threaten its carbon-neutral status. The analysis is drawn from descriptive statistics and compared to the theory of the environmental Kuznets... (More)
The nexus between environmental degradation and economic growth is becoming of greater importance globally and in order to limit global warming at an increase of 1.5 ° C there needs to be a net zero-transition towards carbon neutrality. The Kingdom of Bhutan has over the last decades experienced continuous economic growth while being carbon negative and adhering to its unique Gross National Happiness development framework. This study investigates the relationship between carbon dioxide emissions and gross domestic product in Bhutan and evaluates how Bhutan’s aspirations toward economic growth might threaten its carbon-neutral status. The analysis is drawn from descriptive statistics and compared to the theory of the environmental Kuznets curve, the Decoupling theory and the theory on Green growth. The study finds a positive linear relationship between CO2 emissions per capita and GDP per capita and no substantial evidence of sustained decoupling. While an immediate threat to carbon neutrality is not found due to the country’s large carbon sequestering capacity, there are challenges ahead if Bhutan wants to experience sustained economic growth and remain carbon neutral. (Less)
Please use this url to cite or link to this publication:
author
Wollnert, Sofia LU
supervisor
organization
course
EOSK12 20231
year
type
M2 - Bachelor Degree
subject
keywords
Bhutan, Gross Domestic Product (GDP), Carbon dioxide (CO2) emissions, Carbon Neutrality, Environmental Kuznets Curve (EKC), The Decoupling Theory, Green Growth, Degrowth, Gross National Happiness (GNH)
language
English
id
9127623
date added to LUP
2023-06-21 09:49:10
date last changed
2023-06-21 09:49:10
@misc{9127623,
  abstract     = {{The nexus between environmental degradation and economic growth is becoming of greater importance globally and in order to limit global warming at an increase of 1.5 ° C there needs to be a net zero-transition towards carbon neutrality. The Kingdom of Bhutan has over the last decades experienced continuous economic growth while being carbon negative and adhering to its unique Gross National Happiness development framework. This study investigates the relationship between carbon dioxide emissions and gross domestic product in Bhutan and evaluates how Bhutan’s aspirations toward economic growth might threaten its carbon-neutral status. The analysis is drawn from descriptive statistics and compared to the theory of the environmental Kuznets curve, the Decoupling theory and the theory on Green growth. The study finds a positive linear relationship between CO2 emissions per capita and GDP per capita and no substantial evidence of sustained decoupling. While an immediate threat to carbon neutrality is not found due to the country’s large carbon sequestering capacity, there are challenges ahead if Bhutan wants to experience sustained economic growth and remain carbon neutral.}},
  author       = {{Wollnert, Sofia}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Correlation Between CO2 Emissions and GDP in Bhutan - A Threat to Carbon Neutrality?}},
  year         = {{2023}},
}