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Investigating the effect of carbon leakage on the environmental Kuznets curve using luminosity data

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  • Steinkraus, Arne

Abstract

This paper studies the effect of carbon leakage on the environmental Kuznets curve (EKC) using satellite nighttime light data. It shows that nighttime lighting is an important variable for estimating carbon dioxide emissions that is superior to other existing indicators and covers all countries in the world, finding evidence of an inverted-U shaped relationship between light and, thus, greenhouse gas emissions and income, with a turning point at approximately US$50,000. However, the relationship is primarily driven by changes in the structure of international trade, implying strong carbon leakage effects. Consequently, environmental regulations that become operative in only one part of the world may fail without global coordination.

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  • Steinkraus, Arne, 2017. "Investigating the effect of carbon leakage on the environmental Kuznets curve using luminosity data," Environment and Development Economics, Cambridge University Press, vol. 22(6), pages 747-770, December.
    • Handle: RePEc:cup:endeec:v:22:y:2017:i:06:p:747-770_00
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    Cited by:

    1. Sandra Achten & Christian Leßmann & Arne Steinkraus, 2018. "Die Umwelt-Kuznets-Kurve und internationaler Handel," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 25(01), pages 29-31, February.

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