Causes of CO2 Emissions

Causes of carbon dioxide EmissionsIntroductionSince the beginning of human civilization in the Early St whizz Age or Paleolithic Era, humans started transforming inputs placid from the nature into economic outputs, i.e. goods and services using their primitive technology. Once economic outputs being realized the important thing to satisfy human needs, they emphasized the innovation process, and later accelerated it adopting modern technology. The continuous effort towards achieving enormous volume of economic outputs resulted in Industrial Revolution in 1760. The Revolution started not however a new era of rapid economic ingathering but also attenuated the environmental quality, and more importantly it started transforming the global economy from radical economy based on labor power to inorganic economy based on fossil fuels (Kasman Duman, 2015 Ahmed, et al, 2016 a). Burning fossil fuels release greenhouse gases (GHG) which scientific community undisputedly declared as the ma jor cause of the global warming (Ahmed, et al, 2016 a). A recent study by NASA reveals that atmospheric carbon dioxide (CO2)- the major GHG has significantly increased since the Industrial Revolution (NASA, 2017).Enhancing economic growth was the main purpose of all previous innovations regardless of their nature such as educate machineries, new economic policies or financial development. Consequently, the global community has seen a substantial growth in its economic development over the last a couple of(prenominal) decades (Al-Mulali, et al, 2015). Excessive economic growth requires transforming an enormous volume of raw materials and increases the use of zippo generated broadly from fossil fuels (Ahmed, et al, 2016 a). Excessive use of both raw materials and energy causes environmental pollution on one hand and reduces natural resource base on other hand (idem). Subsequently, long term economic growth along with global warming and climate change becomes one of the major conce rns that countries around the world are currently anticipating (Al-Mulali, et al, 2015 Ahmed, et al, 2016 a). The global concern over these issues has shifted the precaution of researchers as well as policy makers from conventional economic development to sustainable development (Rehman, et al, 2012).Better understanding about economy and environment is one of the preconditions to achieving sustainable development. Therefore, studying the race between economic growth and environment quality has become the focus of researches both in economics and environmental wisdom over the latest decade (Sharma, 2011). Many researches on the issue have been carried out and the resulting wide range of literature is now available (Al-Mulali, et al, 2015 Kasman Duman, 2015 Ahmed, et al, 2016 a). However, the findings are mostly inconclusive because of different indicators used for environmental quality, along with different econometric techniques and different control versatiles used in the stu dies (Rehman, et al, 2012 Ahmed, et al, 2016 a Ahmed, et al, 2016 b). Most of the studies suffer from omitted variable bias, and being completed using information collected from either a single country or a small group of countries or a region (Halicioglu, 2009 Sharma, 2011 Farhani, et al, 2013 Al-Mulali, et al, 2015 Farhani Ozturk, 2015). Consequently, it is difficult to generalize the results of a country or region for the rest of the world (Rehman, et al, 2012).An inclusive global based research on the relationship including important variables is necessary for two reasons it would reduce omitted variable bias and its findings would be appropriate at global level. Any research of this kind will attend policy makers working at global (e.g. IPCC) and regional level (e.g. EU). In our study, we become passionate to estimate the dynamic causal model for identifying the factors causing CO2 emissions in the long-run. The paper is organized as follows after a survey of existing literat ure, the research methods are introduced followed by data analysis and a discussion, and a conclusion.