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A panel data heterogeneous Bayesian estimation of environmental Kuznets curves for CO2 emissions

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  • Antonio Musolesi
  • Massimiliano Mazzanti
  • Roberto Zoboli

Abstract

This article investigates the Environmental Kuznets Curves (EKC) for CO2 emissions in a panel of 109 countries during the period 1959 to 2001. The length of the series makes the application of a heterogeneous estimator suitable from an econometric point of view. The results, based on the hierarchical Bayes estimator, show that different EKC dynamics are associated with the different sub-samples of countries considered. On average, more industrialized countries show evidence of EKC in quadratic specifications, which nevertheless are probably evolving into an N-shape based on their cubic specification. Nevertheless, it is worth noting that the EU, and not the Umbrella Group led by US, has been driving currently observed EKC-like shapes. The latter is associated to monotonic income-CO2 dynamics. The EU shows a clear EKC shape. Evidence for less-developed countries consistently shows that CO2 emissions rise positively with income, though there are some signs of an EKC. Analyses of future performance, nevertheless, favour quadratic specifications, thus supporting EKC evidence for wealthier countries and non-EKC shapes for industrializing regions.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 42 (2010)
Issue (Month): 18 ()
Pages: 2275-2287

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Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2275-2287

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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. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Rifiuti generati, rifiuti in discarica ed efficacia delle politiche ambientali in Europa," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 103-135.
  4. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Are You SURE You Want to Waste Policy Chances? Waste Generation, Landfill Diversion and Environmental Policy Effectiveness in the EU15," Working Papers 2010.77, Fondazione Eni Enrico Mattei.
  5. Paul J Burke, 2011. "Climbing the electricity ladder generates carbon Kuznets curve downturns," CAMA Working Papers 2011-31, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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