JOURNAL OF MANAGEMENT POLICY AND PRACTICE
The Implications of Global Ecological Elasticities for Carbon Control:
A STIRPAT Formulation
Author(s): Carol D. Tallarico, Arvid C. Johnson
Citation: Carol D. Tallarico, Arvid C. Johnson, (2010) "The Implications of Global Ecological Elasticities for Carbon Control: A STIRPAT Formulation," Journal of Management Policy and Practice, Vol. 11, Iss. 4, pp. 86 - 94
Article Type: Research paper
Publisher: North American Business Press
In this paper, we analyze the impact of real energy price on CO2 emissions for OECD countries using an ordinary least squares regression estimation of a STIRPAT model formulation for environmental impact. We model country-level CO2 emissions over the 1978-2007 period as a function of an index of real energy price, population, and gross domestic product per capita. We find that, although rising real energy prices generally have a negative impact on CO2 emissions, the ecological impact elasticity is inelastic for all countries, suggesting that a cap-and-trade system may be preferred to a carbon tax system for global carbon control.