Ecology

Biology

Pollution

Embedded system

Nexus (standard)

Gradient descent

Economics

Computer science

Stochastic gradient descent

Econometrics

Environmental science

Artificial intelligence

Artificial neural network

Multilayer perceptron

Environmental Science and Pollution Research

Although the literature on the relationship between economic growth and CO2 emissions is extensive, the use of machine learning (ML) tools remains seminal. In this paper, we assess this nexus for Italy using innovative algorithms, with yearly data for the 1960-2017 period. We develop three distinct models: the batch gradient descent (BGD), the stochastic gradient descent (SGD), and the multilayer perceptron (MLP). Despite the phase of low Italian economic growth, results reveal that CO2 emissions increased in the predicting model. Compared to the observed statistical data, the algorithm shows a correlation between low growth and higher CO2 increase, which contradicts the main strand of literature. Based on this outcome, adequate policy recommendations are provided.

Revisiting the dynamic interactions between economic growth and environmental pollution in Italy: evidence from a gradient descent algorithm