The purpose of this paper is to estimate and evaluate the relationship between Climate Change Performance Index and economic growth for 56 countries. Climate change will affect the accumulation of capital and savings. Climate change reduces the productivity of capital and, faced with a lower rate of return, agents may prefer to invest less and consume more today and hence reduces growth and future GDP. Climate Change Performance Index (CCPI) evaluates and compares the climate protection performances of the about 58 countries that, together, are responsible for more than 90 percent of global energy-induced CO2 emissions. This index measures via thirteen different composite indicators and varies between zero to 100 in such a way that a higher index means a better climate protection performance. Our findings regarding the estimated panel regression analysis during 2008-2010 show that more the climate protection performance has a positive impact on economic growth and encourage this.

Login Required

Please login to access the full PDF of this article.

🔑 Author Login