CO2 Emissioni = .682 - 4.319 Renewable Energy consumptioni + 7.8 Industrializationi

Se (1.22) (1.33) (.55) ; r^2 = 0.528

1. Interprete this regression.

2. How would you interprete r^2 ?

3. Does the negative value of Renewable Energy consumption make any economic

sense? What is the underlying economic theory?

4. Suppose I want to introduce a new variable for the above equation, that is Energy

Import. Now what will be the sign of the coefficient of Energy Import?