Econometric Analysis on the Interdependence Between the Size of the Population, Level of CO2 Emissions and Evolution of GDP

Climate change and environmental degradation influence the sustainable economy, producing effects at both the macroeconomic and microeconomic levels. The links between economic growth and environmental pollution and energy consumption have been studied extensively in recent years. The state of environmental quality is influenced by the level of income per capita, a phenomenon that generates changes in environmental policies. With increasing per capita income, people tend to consume more goods and services, which leads to more intensive use of natural resources and more waste production. High economic development is usually accompanied by accelerated industrialization and urbanization; these processes can produce negative effects on the environment, such as air and water pollution and deforestation for the expansion of urban areas. Economic growth also brings benefits such as increased availability of financial resources. These resources can be directed towards investments in renewable energies, climate-resilient infrastructure and environmental conservation programs. Economic growth also stimulates technological innovation, investment in research and development, including the development of sustainable technologies and solutions to reduce greenhouse gas emissions, with additional revenues helping to finance measures needed to address climate change and challenges. The purpose of this study is to analyse the existence of a dynamic dependency relationship between the evolution of the GDP indicator and the evolution of the indicators: CO2 emissions and the number of inhabitants, in the last 19 years, in Romania.