The Determinants of Carbon Emissions in Macau: Based on the Analysis of STIRPAT, EKC, and LMDI Models

The global spotlight has been increasingly drawn to the topic of the greenhouse gas effect. This research endeavors to explore the factors that influence Macau's carbon emissions by analyzing yearly figures from 1991 to 2020 and then proffering strategic proposals for the Macau government. The empirical results of the study demonstrate a long-term cointegration relationship, which is based on the natural logarithm of carbon emissions as a dependent variable, and population, real GDP per worker, financial development, industrial structure upgrading, and fixed capital formation as independent variables. The LMDI model shows that, in Macau, the environmental Kuznets curve is present, with energy consumption and carbon emissions being the primary contributors to carbon emissions. Moreover, real GDP per worker, industrial structure improvement, and fixed capital formation have a beneficial effect on carbon emissions, while financial development has a detrimental effect.