Korean Energy Economic Review ISSN:1599-7057(Print) 에너지경제연구

This paper tests Environmental Kuznets Curve Hypothesis using time series data of Korea in the time period between the years 1971 and 2014, and analyzes the determinants of CO2 emissions. For this purpose, we consider GDP per capita, the portion of renewable energy relative to the nation’s power source, final energy consumption per capita, and cooling and heating degree day as the explanatory variables. And, considering nonstationarity of the time series, we analyze the relationship between CO2 emissions and explanatory variables in the framework of a cointegration model and an error correction model. The test results show that there exists a statistically significant positive relation among GDP, cooling and heating degree day, final energy consumption and CO2 emissions, and a statistically significant negative relation among GDP square, the portion of renewable energy and CO2 emissions. That is, the results ascertain the existence of Environment Kuznets Curve in Korea and the significancy of temperature effects on CO2 emissions.