Empirical Economic Bulletin, An Undergraduate Journal


This paper investigates the possibility of different modes of production affecting the emission levels of developing nations. China and India have experienced substantial economic growth of the past few decades. Past economists have found emission levels positively correlated with GDP growth. Nonetheless, China has significantly higher emission levels than India, given their respective growth in GDP. Whether a country bases their growth on agriculture, industry, manufacturing or services has an effect on their subsequent emission levels. Comparing these results with the other G5 nations indicate the relative importance of GDP level in comparison with economic structure. This paper finds that emission levels will continue to rise with GDP levels, in contrast to the inverted Kuznets curve theory. The results of this study also determine that countries utilizing industry, rather than service for the basis of their growth can be attributable to their subsequent higher emission levels.