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Analysis of Environmental Issues and Economic Performance and Population Density

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Analysis of Environmental Issues and Economic Performance and Population Density
Analysis of environmental issues and economic performance and population density

Executive summary
The main goal with the report was to analyse the relationship from 16 different countries on how, if any, CO2 emission per capita is getting affected by population density and GDP per capita by using descriptive statistics and regression. The conclusion is that CO2 emission per capita is affected by changes in GDP per capita and that population density has no significant relation to CO2 emission per capita.

Introduction
Global warming is one of the biggest problems in the international societies today. The politician keeps discussing how they can find solutions together to decrease the CO2 emissions worldwide. In this report we will try to examine if well-established countries have a higher CO2 emissions and we will examine how population density are affecting emission in our society today.

Aim
The aim with this report is first to examine the relationship with GDP per capita and CO2 emission and population density and CO2 emission. Then we will examine if high GDP per capita leads to higher CO2 emission per capita and if countries with low population density are polluting more than countries with high population density.

Hypothesis 1.1
I believe that a country with high GDP are more likely to have a higher CO2 emission per capita since a country with high GDP are more likely to have higher productivity achieved through higher energy use. We will then start with measuring the linear association between these variables.

H0: β0≠β1 GDP≠0 (Correlation)
H1: β0=β1 GDP=0 (No correlation)

Hypothesis 1.2
I believe that a country with high population density are more likely to have a lower CO2 emission per capita since the inhabitants need travel shorter and less often. We will therefor measure the linear association for CO2 emission per capita and population density.

H0: β0≠β2 pop.density≠0 (Correlation)
H1: β0=β2 pop.density=0 (No correlation)



References: * GDP per capita – Gross domestic product per capita in US dollars, 2010; Source International Monetary Fund. http://www.imf.org/external/pubs/ft/weo/2012/02/weodata/ (assessed March 2012) * Population density – number of inhabitants per square kilometre, Source: OECD Various years. United Nations. * Carbon Dioxide Emissions in 2004 – carbon dioxide emissions per capita (tons/capita) 2004, Source: US Department of Energy Appendix

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