Decoupling Economic Growth and Carbon Emissions

Abstract

All economic activity requires energy; to the extent this energy comes from fossil fuels, the energy use results in emissions of carbon dioxide, CO2. The nature of this link between the growth in economic activity and carbon emissions is a critical question for climate change.1 Linkage implies that deep emission reductions will constrain economic growth; decoupling implies that deep emission reductions are possible with little or no effect on growth. An answer to this question is important for the United States, but more crucial for rapidly growing emerging economies such as China and India that seek to improve their citizens' access to low-cost energy while respecting the need to protect the global environment.