This is a further analysis of Carbon Dioxide (CO2) emissions with the objective to investigate the factors that influence carbon emissions. Governments worldwide have been promoting the use of renewable energy as a strategy not only to increase access to electricity but also to reduce environmental degradation because of its lower level of carbon dioxide emissions.  To formulate effective policies to mitigate carbon emissions, it is crucial to understand the factors that influence them.

Since this is an additional analysis of CO2 emissions, the content in the Introduction section of your report may overlap with the one in the Group Assignment. However, you are encouraged to develop/source new background materials that align with the objective of the current analysis. You will use a similar dataset as in Assignment 2 but with some additional information.

The data are drawn from the World Bank database for the year 2015. The sample used for analysis comprises 57 high-income countries (HIC) and 130 low- or middle-income countries (LMIC), as per the World Bank classification of world economies. The dataset contains the following information:

1. CO2: per capita carbon dioxide emissions (metric tons)
2. group: the dummy variable group = 1 if it is a high-income country (HIC), and = 0 if it is a low- or middle-income country (LMIC).
3. urban: the dummy variable urban = 1 if the country is highly urbanized (i.e 70% or more of the population live in urban areas), and = 0 if the country is not highly urbanized
4. dense: the dummy variable dense = 1 if the country is densely populated (i.e more than 200 individuals live in 1 square kilometer of land area), and = 0 if it is not densely populated.
5. GDP: per capita GDP, in USD1000, at constant 2015 prices
6. renewable: share of renewable energy consumption out of total energy consumption (in %)