Modeling and Monitoring CO2 Emissions in G20 Countries: A Comparative Analysis of Multiple Statistical Models

The emission of carbon dioxide (CO2) is considered one of the main factors responsible for one of the greatest challenges faced by the world today: climate change. On the other hand, with the increase in energy demand due to the increase in population and industrialization, the emission of CO2 has increased rapidly in the past few decades. However, the world’s leaders, including the United Nations, are now taking serious action on how to minimize the emission of CO2 into the atmosphere. Towards this end, accurate modeling and monitoring of historical CO2 can help in the development of rational policies. This study aims to analyze the carbon emitted by the Group Twenty (G20) countries for the period 1971–2021. The datasets include CO2 emissions, nonrenewable energy (NREN), renewable energy (REN), Gross Domestic Product (GDP), and Urbanization (URB). Various regression-based models, including multiple linear regression models, quantile regression models, and panel data models with different variants, were used to quantify the influence of independent variables on the response variable. In this study, CO2 is a response variable, and the other variables are covariates. The ultimate objective was to choose the best model among the competing models. It is noted that the USA, Canada, and Australia produced the highest amount of CO2 consistently for the entire duration; however, in the last decade (2011–2021) it has decreased to 12.63–17.95 metric tons per capita as compared to the duration of 1971–1980 (14.33–22.16 metric tons per capita). In contrast, CO2 emissions have increased in Saudi Arabia and China recently. For modeling purposes, the duration of the data has been divided into two independent, equal parts: 1971–1995 and 1996–2021. The panel fixed effect model (PFEM) and panel mixed effect model (PMEM) outperformed the other competing models using model selection and model prediction criteria. Different models provide different insights into the relationship between CO2 emissions and independent variables. In the later duration, all models show that REN has negative impacts on CO2 emissions, except the quantile regression model with tau = 0.25. In contrast, NREN has strong positive impacts on CO2 emissions. URB has significantly negative impacts on CO2 emissions globally. The findings of this study hold the potential to provide valuable information to policymakers on carbon emissions and monitoring globally. In addition, results can help in addressing some of the sustainable development goals of the United Nation Development Programme.