Advanced Search
MyIDEAS: Login to save this article or follow this journal

Assessing the functional relationship between CO2 emissions and economic development using an additive mixed model approach

Contents:

Author Info

  • Zanin, Luca
  • Marra, Giampiero

Abstract

Researchers have suggested that the relationship between the emission of carbon dioxide per capita and the real gross domestic product per capita follows an inverted-U-shaped (so-called environmental Kuznets) curve. Studies have generally used polynomial regression (quadratic or cubic form) to investigate this relationship. It has been recognised that polynomials are not that flexible and that, by choosing the degree of the polynomial, researchers make a priori assumptions. In this paper, we investigate the environmental Kuznets curve hypothesis using a flexible approach from additive mixed models. Such models are well-suited to handle nonlinear covariate effects flexibly and to simultaneously deal with temporal error structure. We consider the following countries: Australia, Austria, Canada, Denmark, Finland, France, Italy, Spain and Switzerland. Our results show the existence of the classic environmental Kuznets curve for France and Switzerland, and of a nonlinear (increasing) relationship for Australia, Italy and Spain. For Austria, the evidence reveals a weak N-shaped relationship. New nonlinear shapes are found for Finland (inverted-L-shape relationship), Canada (a special case of the inverted-L-shape relationship), and Denmark (M-shape relationship). Our findings are complemented by the calculation of the elasticity of the carbon dioxide emission per capita as a percentage of each level of real gross domestic product per capita.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/pii/S0264999312000636
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 29 (2012)
Issue (Month): 4 ()
Pages: 1328-1337

as in new window
Handle: RePEc:eee:ecmode:v:29:y:2012:i:4:p:1328-1337

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/30411

Related research

Keywords: Additive mixed model; CO2 emission; Economic development; Environmental Kuznets curve; Penalised regression spline; Polynomial regression;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Jaunky, Vishal Chandr, 2011. "The CO2 emissions-income nexus: Evidence from rich countries," Energy Policy, Elsevier, vol. 39(3), pages 1228-1240, March.
  2. Kijima, Masaaki & Nishide, Katsumasa & Ohyama, Atsuyuki, 2010. "Economic models for the environmental Kuznets curve: A survey," Journal of Economic Dynamics and Control, Elsevier, vol. 34(7), pages 1187-1201, July.
  3. BERTINELLI, Luisito & STROBL, Eric, 2004. "The Environmental Kuznets Curve semi-parametrically revisited," CORE Discussion Papers 2004051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Alan M. Taylor & Mark Taylor, 2004. "The Purchasing Power Parity Debate," Working Papers 46, University of California, Davis, Department of Economics.
  5. Hughes, Larry & Chaudhry, Nikhil, 2011. "The challenge of meeting Canada's greenhouse gas reduction targets," Energy Policy, Elsevier, vol. 39(3), pages 1352-1362, March.
  6. Azomahou, Théophile & Laisney, François & van Phu, Nguyen, 2005. "Economic Development and CO2 Emissions: A Nonparametric Panel Approach," ZEW Discussion Papers 05-56, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Matthew Cole, 2005. "Re-examining the pollution-income relationship: a random coefficients approach," Economics Bulletin, AccessEcon, vol. 14(1), pages 1-7.
  8. Roy, Nilanjana & Cornelis van Kooten, G., 2004. "Another look at the income elasticity of non-point source air pollutants: a semiparametric approach," Economics Letters, Elsevier, vol. 85(1), pages 17-22, October.
  9. Teräväinen, Tuula & Lehtonen, Markku & Martiskainen, Mari, 2011. "Climate change, energy security, and risk--debating nuclear new build in Finland, France and the UK," Energy Policy, Elsevier, vol. 39(6), pages 3434-3442, June.
  10. Narayan, Paresh Kumar & Narayan, Seema, 2010. "Carbon dioxide emissions and economic growth: Panel data evidence from developing countries," Energy Policy, Elsevier, vol. 38(1), pages 661-666, January.
  11. Denis Kwiatkowski & Peter C.B. Phillips & Peter Schmidt, 1991. "Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure Are We That Economic Time Series Have a Unit Root?," Cowles Foundation Discussion Papers 979, Cowles Foundation for Research in Economics, Yale University.
  12. Hanley, Nicholas & Turner, Karen, 2010. "Energy Efficiency, Rebound Effects and the Environmental Kuznets Curve," Stirling Economics Discussion Papers 2010-17, University of Stirling, Division of Economics.
  13. Owen, Anthony D., 2011. "The economic viability of nuclear power in a fossil-fuel-rich country: Australia," Energy Policy, Elsevier, vol. 39(3), pages 1305-1311, March.
  14. List, John A. & Gallet, Craig A., 1999. "The environmental Kuznets curve: does one size fit all?," Ecological Economics, Elsevier, vol. 31(3), pages 409-423, December.
  15. Magnus, J.R. & Melenberg, B. & Muris, C.H.M., 2011. "Global Warming and Local Dimming: The Statistical Evidence," Discussion Paper 2011-004, Tilburg University, Center for Economic Research.
  16. Phillips, Peter C B & Ouliaris, S, 1990. "Asymptotic Properties of Residual Based Tests for Cointegration," Econometrica, Econometric Society, vol. 58(1), pages 165-93, January.
  17. Ruppert,David & Wand,M. P. & Carroll,R. J., 2003. "Semiparametric Regression," Cambridge Books, Cambridge University Press, number 9780521785167.
  18. Kenneth Rogoff, 1996. "The Purchasing Power Parity Puzzle," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 647-668, June.
  19. Vollebergh, Herman R.J. & Melenberg, Bertrand & Dijkgraaf, Elbert, 2009. "Identifying reduced-form relations with panel data: The case of pollution and income," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 27-42, July.
  20. Sperling, Karl & Hvelplund, Frede & Mathiesen, Brian Vad, 2010. "Evaluation of wind power planning in Denmark – Towards an integrated perspective," Energy, Elsevier, vol. 35(12), pages 5443-5454.
  21. Fodha, Mouez & Zaghdoud, Oussama, 2010. "Economic growth and pollutant emissions in Tunisia: An empirical analysis of the environmental Kuznets curve," Energy Policy, Elsevier, vol. 38(2), pages 1150-1156, February.
  22. Lofstedt, Ragnar, 2008. "Are renewables an alternative to nuclear power? An analysis of the Austria/Slovakia discussions," Energy Policy, Elsevier, vol. 36(6), pages 2226-2233, June.
  23. Foidart, F. & Oliver-Solá, J. & Gasol, C.M. & Gabarrell, X. & Rieradevall, J., 2010. "How important are current energy mix choices on future sustainability? Case study: Belgium and Spain--projections towards 2020-2030," Energy Policy, Elsevier, vol. 38(9), pages 5028-5037, September.
  24. Galeotti, Marzio & Lanza, Alessandro & Pauli, Francesco, 2006. "Reassessing the environmental Kuznets curve for CO2 emissions: A robustness exercise," Ecological Economics, Elsevier, vol. 57(1), pages 152-163, April.
  25. Martinez-Zarzoso, Inmaculada & Bengochea-Morancho, Aurelia, 2004. "Pooled mean group estimation of an environmental Kuznets curve for CO2," Economics Letters, Elsevier, vol. 82(1), pages 121-126, January.
  26. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
  27. repec:ebl:ecbull:v:14:y:2005:i:1:p:1-7 is not listed on IDEAS
  28. Ruppert,David & Wand,M. P. & Carroll,R. J., 2003. "Semiparametric Regression," Cambridge Books, Cambridge University Press, number 9780521780506.
  29. He, Jie & Richard, Patrick, 2010. "Environmental Kuznets curve for CO2 in Canada," Ecological Economics, Elsevier, vol. 69(5), pages 1083-1093, March.
  30. Panayotou T, 1993. "Empirical tests and policy analysis of environmental degradation at different stages of economic development," ILO Working Papers 292778, International Labour Organization.
  31. Iwata, Hiroki & Okada, Keisuke & Samreth, Sovannroeun, 2009. "Empirical Study on the Environmental Kuznets Curve for CO2 in France: The Role of Nuclear Energy," MPRA Paper 18997, University Library of Munich, Germany.
  32. Jalil, Abdul & Mahmud, Syed F., 2009. "Environment Kuznets curve for CO2 emissions: A cointegration analysis for China," Energy Policy, Elsevier, vol. 37(12), pages 5167-5172, December.
  33. Stern, David I., 2010. "Between estimates of the emissions-income elasticity," Ecological Economics, Elsevier, vol. 69(11), pages 2173-2182, September.
  34. Stern, David I. & Common, Michael S. & Barbier, Edward B., 1996. "Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development," World Development, Elsevier, vol. 24(7), pages 1151-1160, July.
  35. Taskin, Fatma & Zaim, Osman, 2000. "Searching for a Kuznets curve in environmental efficiency using kernel estimation," Economics Letters, Elsevier, vol. 68(2), pages 217-223, August.
  36. Ciprian M. Crainiceanu & David Ruppert, 2004. "Likelihood ratio tests in linear mixed models with one variance component," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 66(1), pages 165-185.
  37. Krivobokova, Tatyana & Kauermann, Goran, 2007. "A Note on Penalized Spline Smoothing With Correlated Errors," Journal of the American Statistical Association, American Statistical Association, vol. 102, pages 1328-1337, December.
  38. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Thomas Jobert & Fatih Karanfil & Anna Tykhonenko, 2014. "Estimating country-specific environmental Kuznets curves from panel data: a Bayesian shrinkage approach," Applied Economics, Taylor & Francis Journals, vol. 46(13), pages 1449-1464, May.
  2. Ernesto Aguayo-Téllez & José Martínez-Navarro, 2013. "Internal and international migration in Mexico: 1995--2000," Applied Economics, Taylor & Francis Journals, vol. 45(13), pages 1647-1661, May.
  3. Lau, Lin-Sea & Choong, Chee-Keong & Eng, Yoke-Kee, 2014. "Investigation of the environmental Kuznets curve for carbon emissions in Malaysia: Do foreign direct investment and trade matter?," Energy Policy, Elsevier, vol. 68(C), pages 490-497.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:29:y:2012:i:4:p:1328-1337. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.