Impact of Urbanization on Carbon Dioxide Emissions—Evidence from 136 Countries and Regions

Abstract

Urbanization affects economic production activities and energy demand, as well as lifestyle and consumption behavior, affecting carbon dioxide emissions. This study constructs the System Generalized Method of Moments (Sys-GMM) model of the impact of urbanization rate on carbon dioxide emissions based on panel data of 136 countries and regions in the world from 1990 to 2020, grounded on the extended Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model. This study found that (1) there is a negative relationship between urbanization rate and CO2 emissions from 1990 to 2020. (2) The impact of the urbanization rate on CO2 emissions is heterogeneous. An increase in urbanization rate in non-OECD countries significantly reduces CO2 emissions, while the effect is not significant in OECD countries. (3) The carbon intensity of fossil energy consumption moderates the relationship between urbanization rate and CO2 emissions, weakening the effect of urbanization rate on CO2 emissions. Based on these findings, policy recommendations such as promoting urbanization and increasing the regulation and control of fossil energy carbon intensity are proposed.