The National Aeronautics and Space Administration Goddard Institute for Space Studies (2014) states that “global surface temperature in 2013 was +0.6°C (~1.1°F) warmer than the 1951-1980 base period average, thus the seventh warmest year in the GISS analysis.” Global warming has always been correlated by the increasing amount of greenhouse gases, which carbon dioxide is notoriously known for, in the Earth’s atmosphere.
Many environmental activists are putting pressures to every facet of society and making them aware about the harm of the continuously increasing carbon dioxide emission that the world is experiencing. The Philippines is already starting to experience sudden extreme changes in its climate and natural disasters that were not as forceful decades back. This does not only reflect negatively on the environment, but also on the economy as these disasters and changes also has an impact on the way business is done, and leads to the destruction of many profitable assets which disrupts the normal economic cycle of the country. This is why environmental economists are now increasing in number as they are concerned the impact of many economic factors to the environment; one of which that is greatly receiving attention are its relationship between carbon dioxide emissions, which many economists believe as the best representation of environmental degradation.
It is interesting to know how the Philippine economic behaviour affects carbon dioxide emissions that links to environmental deterioration, because as an emerging economy, the country still have a large room to improve on its policies and efforts as early as now thus the need for more studies like this that backups many environmental claims against the unbending desire for unsustainable growth.
Objective and Statement of the Problem
This paper aims to establish a relationship between macroeconomic variables and carbon dioxide emission. From there, it can also show that the Philippine economic development gives more than just wealth, but also environmental impacts that is related to the greenhouse gas emission. With this objective, the author thinks that there is a need to empirically determine the impact of macroeconomic determinants on carbon dioxide emissions.
Oftentimes, human nature dictates us to spur the most from what we have, thus, it is natural for greed and tunnel vision for growth to be in the minds of many businessmen, policymakers, or any citizen in the population. However, in many cases, these men fail to recognise that more than monetary costs, many of human actions entail environmental repercussions.
The significance of this study can be derived from the essence of the variables that are going to be used in this study. Gross domestic product, foreign direct investment, exports, imports, energy use, and urban population relates with economic development. On the other hand, carbon dioxide emissions in this study, relates to environmental...