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Key driving factor analysis on industrialization and CO2 emission: based on data of madagascar, China and the united states

Guang Ming Rao, Hery Andrianiaina, Yong Wang

This paper explores the key driving factors on the stages of industrialization and CO2 emissions. With the STIRPAT model and Dynamic OLS technique to assess the driving forces leading to CO2 emission in Madagascar, China and the United States within different stage of industrialization. Findings show that the key driving factor of CO2 emission is different at different stage of industrialization. At early stage of industrialization where the economy is principally agriculture dominant, the GDP growth tend to be the key driving force of CO2 emission, while at the middle stage where the economy is characterized by manufacturing and services, industry and energy intensity are both the key driving forces of CO2 emission and at the highly stage where the economy is dominated by the service sector, Energy intensity is the key driving factor of CO2 emission. To reduce CO2 emissions in industrialization is to internalize advanced technologies into industrial transformation and energy intensity enhancement which form joint forces to make economic growth much cleaner