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

Is there an environmental Kuznets curve for water use? A panel smooth transition regression approach

Contents:

Author Info

  • Duarte, Rosa
  • Pinilla, Vicente
  • Serrano, Ana

Abstract

This paper presents an analysis of the relationship between per capita water use and per capita income for 65 countries, over the period 1962–2008, within the framework of the so-called environmental Kuznets curve (EKC). Consistent with the existing literature, a polynomial fixed effects model is first presented. Then, a logistic Panel Smooth Transition Regression (PSTR) is estimated, obtaining income elasticities. This empirical study yields several important findings. The nexus between water withdrawal per person and per capita GDP is non-linear, showing a peculiar inverted-U with a marked downward limb that dominates the nexus, regardless of the estimation method chosen. On the whole, water use income elasticity clearly decreases throughout the period; nevertheless it exhibits a great variability over the sample, reflecting the divergent patterns of water use depending on the level of income of each country and the time period.

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/S0264999312004294
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): 31 (2013)
Issue (Month): C ()
Pages: 518-527

as in new window
Handle: RePEc:eee:ecmode:v:31:y:2013:i:c:p:518-527

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

Related research

Keywords: Water use; Panel Smooth Transition Regression model; Environmental Kuznets curve; Nonlinearity; Per capita income;

Other versions of this item:

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. Fouquau, Julien & Hurlin, Christophe & Rabaud, Isabelle, 2008. "The Feldstein-Horioka puzzle: A panel smooth transition regression approach," Economic Modelling, Elsevier, Elsevier, vol. 25(2), pages 284-299, March.
  2. David I. Stern, 2003. "The Rise and Fall of the Environmental Kuznets Curve," Rensselaer Working Papers in Economics, Rensselaer Polytechnic Institute, Department of Economics 0302, Rensselaer Polytechnic Institute, Department of Economics.
  3. Nektarios Aslanidis, 2009. "Environmental Kuznets Curves for Carbon Emissions: A Critical Survey," Working Papers 2009.75, Fondazione Eni Enrico Mattei.
  4. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
  5. Chang, Tsangyao & Chiang, Gengnan, 2011. "Regime-switching effects of debt on real GDP per capita the case of Latin American and Caribbean countries," Economic Modelling, Elsevier, Elsevier, vol. 28(6), pages 2404-2408.
  6. Fouquau, Julien & Bessec, Marie, 2008. "The Non-Linear Link between Electricity Consumption and Temperature in Europe : A Threshold Panel Approach," Economics Papers from University Paris Dauphine 123456789/8180, Paris Dauphine University.
  7. Aslanidis, Nektarios & Xepapadeas, Anastasios, 2006. "Smooth transition pollution-income paths," Ecological Economics, Elsevier, Elsevier, vol. 57(2), pages 182-189, May.
  8. Julien Fouquau & Ghislaine Destais & Christophe Hurlin, 2009. "Energy demand models: a threshold panel specification of the 'Kuznets curve'," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 16(12), pages 1241-1244.
  9. Gales, Ben & Kander, Astrid & Malanima, Paolo & Rubio, Mar, 2007. "North versus South: Energy transition and energy intensity in Europe over 200 years," European Review of Economic History, Cambridge University Press, Cambridge University Press, vol. 11(02), pages 219-253, August.
  10. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
  11. M. Hashem Pesaran, 2004. "General Diagnostic Tests for Cross Section Dependence in Panels," CESifo Working Paper Series 1229, CESifo Group Munich.
  12. Gilbert Colletaz & Christophe Hurlin, 2006. "Threshold Effects of the Public Capital Productivity : An International Panel Smooth Transition Approach," Working Papers halshs-00008056, HAL.
  13. M. Hashem Pesaran & Badi H. Baltagi, 2007. "Heterogeneity and cross section dependence in panel data models: theory and applications introduction," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 22(2), pages 229-232.
  14. Rosa Duarte & Vicente Pinilla & Ana Serrano, 2014. "Looking backward to look forward: water use and economic growth from a long-term perspective," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 46(2), pages 212-224, January.
  15. Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-52, Special I.
  16. Gene M. Grossman & Alan B. Krueger, 1994. "Economic Growth and the Environment," NBER Working Papers 4634, National Bureau of Economic Research, Inc.
  17. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, Elsevier, vol. 57(1), pages 85-101, May.
  18. Matthew Cole, 2004. "Economic growth and water use," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 11(1), pages 1-4.
  19. 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, Elsevier, vol. 24(7), pages 1151-1160, July.
  20. Yi-Bin Chiu, 2012. "Deforestation and the Environmental Kuznets Curve in Developing Countries: A Panel Smooth Transition Regression Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 60(2), pages 177-194, 06.
  21. Roca, Jordi & Padilla, Emilio & Farre, Mariona & Galletto, Vittorio, 2001. "Economic growth and atmospheric pollution in Spain: discussing the environmental Kuznets curve hypothesis," Ecological Economics, Elsevier, Elsevier, vol. 39(1), pages 85-99, October.
  22. Lee, Chien-Chiang & Chiu, Yi-Bin, 2012. "The impact of real income on insurance premiums: Evidence from panel data," International Review of Economics & Finance, Elsevier, Elsevier, vol. 21(1), pages 246-260.
  23. Kander, Astrid & Lindmark, Magnus, 2004. "Energy consumption, pollutant emissions and growth in the long run: Sweden through 200 years," European Review of Economic History, Cambridge University Press, Cambridge University Press, vol. 8(03), pages 297-335, December.
  24. de Bruyn, S. M. & van den Bergh, J. C. J. M. & Opschoor, J. B., 1998. "Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves," Ecological Economics, Elsevier, Elsevier, vol. 25(2), pages 161-175, May.
  25. Jordi Roca & Emilio Padilla & Mariona Farré & Vittorio Galletto, 2001. "Economic growth and atmospheric pollution in Spain: discussing the environmental Kuznets curve by hypothesis," Working Papers wp0101, Department of Applied Economics at Universitat Autonoma of Barcelona.
  26. Lee, Chien-Chiang & Chiu, Yi-Bin, 2011. "Electricity demand elasticities and temperature: Evidence from panel smooth transition regression with instrumental variable approach," Energy Economics, Elsevier, Elsevier, vol. 33(5), pages 896-902, September.
  27. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, Elsevier, vol. 93(2), pages 345-368, December.
  28. 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.
  29. Panayotou T, 1993. "Empirical tests and policy analysis of environmental degradation at different stages of economic development," ILO Working Papers, International Labour Organization 292778, International Labour Organization.
  30. Margrethe Winslow, 2005. "Is Democracy Good for the Environment?," Journal of Environmental Planning and Management, Taylor & Francis Journals, Taylor & Francis Journals, vol. 48(5), pages 771-783.
  31. Shafik, Nemat & Bandyopadhyay, Sushenjit, 1992. "Economic growth and environmental quality : time series and cross-country evidence," Policy Research Working Paper Series 904, The World Bank.
  32. P Ekins, 1997. "The Kuznets curve for the environment and economic growth: examining the evidence," Environment and Planning A, Pion Ltd, London, vol. 29(5), pages 805-830, May.
  33. Girod, Jacques & Bourbonnais, Régis & Keppler, Jan Horst, 2007. "The Econometrics of Energy Systems," Economics Papers from University Paris Dauphine 123456789/120, Paris Dauphine University.
  34. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
  35. Massimiliano Mazzanti & Antonio Musolesi, 2010. "Carbon Abatement Leaders and Laggards Non Parametric Analyses of Policy Oriented Kuznets Curves," Working Papers 2010.149, Fondazione Eni Enrico Mattei.
  36. Herman R.J. Vollebergh & Bertrand Melenberg & Elbert Dijkgraaf, 2007. "Identifying Reduced-Form Relations with Panel Data," Tinbergen Institute Discussion Papers 07-072/3, Tinbergen Institute.
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. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2014. "The effect of globalisation on water consumption: A case study of the Spanish virtual water trade, 1849–1935," Ecological Economics, Elsevier, Elsevier, vol. 100(C), pages 96-105.

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:31:y:2013:i:c:p:518-527. 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.