Stuck in the Jam: CO₂Emissions, Growth and Technical Change in Mexico
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Decoupling economic growth from emissions of green-house gases is a major challenge for global sustainability. This relationship, mediated by product composition and the state of technology, is however a complex one. In this paper we examine critically the notion of an Environmental Kuznets curve relating economic growth and emissions, and assess the role of technical change operating at lower levels of aggregation. With the example of a large, middle-income developing country, we show that long periods of economic stagnation reinforce “carbon lock-in” despite significant improvements in energy efficiency.