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Economic growth, international trade and air pollution: A decomposition analysis

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  • Kukla-Gryz, Anna
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    Abstract

    This study analyzes the impact of economic growth and international trade on the level of air pollution. This is done by the estimation of the Structural Equation Model with two factors describing the structure of economic activity and air pollution intensity. It is further assumed that there is causal link between these two factors and that they are influenced by per capita income, international trade intensity and the Freedom House Index. The estimation results suggest that in the developing countries analyzed both international trade and per capita income lead to changes in the structure of economic activity and - as a consequence - to the increase in air pollution. In addition, the estimation results suggest that the impact of economic growth on air pollution intensity varies between the developing and developed countries. In the developing countries, this impact occurs through the change of the structure of economic activity, while in the developed countries, this impact is mainly direct and occurs through the sum of the scale effect and income effect. The positive sign of this impact suggests the dominance of the scale effect over the income effect.

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    Bibliographic Info

    Article provided by Elsevier in its journal Ecological Economics.

    Volume (Year): 68 (2009)
    Issue (Month): 5 (March)
    Pages: 1329-1339

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    Handle: RePEc:eee:ecolec:v:68:y:2009:i:5:p:1329-1339

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    Web page: http://www.elsevier.com/locate/ecolecon

    Related research

    Keywords: Environmental Kuznets Curve International trade Decomposition effects;

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    Cited by:
    1. George E. Halkos & Nickolaos G. Tzeremes, 2011. "Growth and environmental pollution: empirical evidence from China," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 4(3), pages 144-157, October.
    2. Mohamed Arouri & Muhammad Shahbaz & Rattapon Onchang & Faridul Islam & Frédéric Teulon, 2014. "Environmental Kuznets Curve in Thailand: Cointegration and Causality Analysis," Working Papers 2014-204, Department of Research, Ipag Business School.

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