Education, Convergence and Carbon Dioxide Growth per Capita

This paper examines the existence of convergence and the importance of education on carbon dioxide growth per capita, over the period 1970-2004 for 85 countries. We use panel data and apply GMM-System estimation. This rigorous approach takes into account the observed and unobserved heterogeneity of countries, and solves the endogeneity problems associated with some variables. Our results suggest a divergence in per capita carbon dioxide emissions around the world, and that education is not a factor in carbon dioxide emissions growth. Contrary to commonly held beliefs based on intuition, we provide evidence that, in developing countries, there is no convergence, and that education is not a factor in carbon dioxide growth. In developed countries, we find a convergence for per capita carbon dioxide emissions. Education was found to be a factor in pollution growth, although its effect is mitigated by the presence of political institutions.