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Carbon Kuznets curve: a dynamic empirical approach for a panel data

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  • Roxana Pincheira
  • Felipe Zuniga
  • Pablo Neudorfer

Abstract

The Environmental Kuznets curve (EKC) relationship is defined as an inverted‐U association between income and pollution. However, it remains a hypothesis since the empirical evidence is mixed. A key limitation in previous studies is that they ignore the endogenous relationship between income and pollution. To address this issue, a dynamic system generalised method of moments (GMM) was utilised with a large sample of countries and a long time series. After controlling for country‐specific fixed effects, the dynamic feedback between income and environmental damage, and several controls, we find support for the EKC hypothesis in our sample.

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  • Roxana Pincheira & Felipe Zuniga & Pablo Neudorfer, 2021. "Carbon Kuznets curve: a dynamic empirical approach for a panel data," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5523-5541, December.
    • Handle: RePEc:bla:acctfi:v:61:y:2021:i:4:p:5523-5541
    DOI: 10.1111/acfi.12766
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