The Climate‐Carbon Response Model in Small Island Economies: A Dynamic Investigation

Most small islands have been registering an increase in temperature, and further increases are expected in the future with more frequent heat waves. These islands are also registering more extreme heat events as well as other climate change impacts like continued sea level rise, a decrease in rainfall, and more intense tropical cyclones, among others. Hence, the objective of this study is to investigate the effect of pollution in terms of carbon dioxide emissions on an increase in temperature for the case of selected small island economies. This study was done for the period 1990–2018. A vector error correction model is used, and the result confirms that environmental quality has led to the warming up of the atmosphere. Moreover, economic growth is seen to deteriorate environmental quality and lead to more pollution for the island economies. Foreign direct investment (FDI) is observed to result in more pollution, while the impact of education on the climate-carbon model is inconclusive.