Population aging and environmental quality in OECD countries: evidence from sulfur dioxide emissions data

Recent literature has suggested that population aging may shape energy demand and related emissions. Recent scholarship also suggests that emissions play a role in contemporary climate change and, as such, understanding the effect of population compositional change has considerable environmental policy importance. The purpose of this paper is to empirically investigate the macro-level relationship between population aging and emissions of sulfur dioxide. We extend a standard macroeconomic estimation function by including the age composition of the population. In doing so, we separate, for the first time in the literature on aging and the environment, the life-cycle dimension of the age structure from its cohort dimension. We utilize data representing a balanced panel of 25 OECD countries during the period from 1970 to 2000. Consistent with our expectations, we find that societies with a low proportion of young and a high proportion of senior citizens emit more sulfur dioxide. At the same time, our results suggest that a high proportion of individuals born before 1960 is positively correlated to national sulfur dioxide emissions. Our study contributes to understanding of past emission patterns in OECD countries and the findings may allow for improvements in future emission projections.