Using Quantile Regression to Analyze the Relationship between Socioeconomic Indicators and Carbon Dioxide Emissions in G20 Countries

Numerous studies addressed the impacts of social development and economic growth on environment. This paper presents a study about inclusive impact factors environment by analyzing association between carbon dioxide (CO2) emissions two socioeconomic indicators, namely, Human Development Index (HDI) Legatum Prosperity (LPI), under Environmental Kuznets Curve (EKC) framework. To this end, we developed two-stage methodology. At first, multivariate model was constructed that accurately explains CO2 selecting appropriate set control variables based quality statistics. The include GDP per capita, urbanization, fossil fuel consumption, trade openness. Then, quantile regression used to empirically analyze relationship which revealed many interesting results. First, decreasing coupled with development. Both LPI HDI had negative marginal at quantiles from 0.2 1. Second, EKC hypothesis valid for G20 countries during period an inflection point around 0.15. Third, consumption significant positive relation emissions, whereas urbanization openness period. Finally, indicates effective policies policy coordination broad social, living, dimensions can lead reductions in while preserving growth.