Creative Commons

This dissertation was written as part of the MSc in Energy and Finance at the International Hellenic University. This study examines the relationship between per capita GDP and per capita emissions of the greenhouse gas carbon dioxide (CO2) on Europe to see if economic expansion has an impact on environmental degradation. Several ideas are investigated, each with a different perspective on the likely impact of economic growth on environmental degradation. Although all studies find that there is a link between economic expansion and environmental degradation, the impact of this link varies due to the diversity among countries on environmental legislations, energy fuels abundance or population. According to our empirical findings on the nations of Europe, there is a link between per capita GDP and per capita carbon dioxide emissions. The relationship is positive, implying that rising per capita GDP results in higher carbon dioxide emissions. As some theories say, there is no tipping point where emissions begin to fall when GDP reaches a certain level. According to the findings, market economic processes are insufficient to reduce emissions, and so legal measures are required to prevent future environmental degradation.