Assume you are a research analyst in an environmentally-concerned consultancy group. Your team leader has given you a research task to investigate the empirical relationship between Australia's Gross Domestic Product (GDP) (per capita) and CO2 emissions (metric tons per capita). In addition, you have been asked to investigate the relationship between Australia's Energy use (kg of oil equivalent per capita) and CO2 emissions (metric tons per capita).
Carry out the following tasks:
- Gather annual time series data (for the period 1960 - 2010) from the World Bank - World development indicators database
Relevant Variables: CO2 emissions (metric tons per capita), GDP per capita (constant LCU) and Energy use (kg of oil equivalent per capita)
Download data (in excel format) from the following website:
databank.worldbank.org/data/views/variableSelection/selectvariables.aspx?source=world-development-indicators
- Using a range of appropriate descriptive statistical techniques describe the above data series
- Use simple linear regression technique to develop two models and interpret results
o Model 1 - (dependent variable = CO2 emissions (metric tons per capita) and independent variable = GDP per capita (constant LCU)).
o Model 2 - (dependent variable = CO2 emissions (metric tons per capita) and independent variable = Energy use (kg of oil equivalent per capita)).
- Assess the two models using appropriate statistics and a test procedure.