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Carbon dioxide emissions and economic growth: A structural approach

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  • Gary Koop

Abstract

This paper uses data for 44 countries from 1970-1990, to investigate the relationship between economic growth and carbon dioxide emissions. Empirical results are obtained from a structural model from the empirical growth literature modified to include environmental 'bads'. Results suggest that richer countries exhibit technical progress in a way that economizes on carbon dioxide emissions but that poorer countries do not. Furthermore, there is no indication that the growth process is leading poorer countries to move towards the adoption of the same pollution-ameliorating technology as characterizes richer countries.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Applied Statistics.

Volume (Year): 25 (1998)
Issue (Month): 4 ()
Pages: 489-515

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Handle: RePEc:taf:japsta:v:25:y:1998:i:4:p:489-515

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References

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  1. van den Broeck, Julien & Koop, Gary & Osiewalski, Jacek & Steel, Mark F. J., 1994. "Stochastic frontier models : A Bayesian perspective," Journal of Econometrics, Elsevier, vol. 61(2), pages 273-303, April.
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  3. RITTER, Christian & SIMAR, Leopold, 1994. "Pitfalls of Normal-Gamma Stochastic Frontier Models," CORE Discussion Papers 1994041, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  5. 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.
  6. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200.
  7. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
  8. Gene M. Grossman & Alan B. Krueger, 1994. "Economic Growth and the Environment," NBER Working Papers 4634, National Bureau of Economic Research, Inc.
  9. Koop, Gary, 1994. " Recent Progress in Applied Bayesian Econometrics," Journal of Economic Surveys, Wiley Blackwell, vol. 8(1), pages 1-34, March.
  10. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
  11. Koop, G. & Osiewalski, J. & Steel, M. F. J., . "Bayesian efficiency analysis through individual effects: Hospital cost frontiers," CORE Discussion Papers RP -1245, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  13. J. Bradford De Long & Lawrence H. Summers, 1990. "Equipment Investment and Economic Growth," NBER Working Papers 3515, National Bureau of Economic Research, Inc.
  14. Koop, G. & Osiewalski, J. & Steel, M.F.J., 1995. "The components of output growth: A cross-country analysis," Discussion Paper 1995-17, Tilburg University, Center for Economic Research.
  15. Koop, Gary & Osiewalski, Jacek & Steel, Mark F J, 2000. "Modeling the Sources of Output Growth in a Panel of Countries," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(3), pages 284-99, July.
  16. KOOP , Gary & OSIEWALSKI, Jacek & STEEL , Mark, 1995. "Measuring the Sources of Output Growth in a Panel of Countries," CORE Discussion Papers 1995042, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  18. Beghin, John C. & Roland-Holst, David & Van der Mensbrugghe, Dominique, 1994. "Trade and Environment Nexus. Global Dimensions, The," Staff General Research Papers 1589, Iowa State University, Department of Economics.
  19. Koop, G. & Osiewalski, J. & Steel, M.F.J., 1994. "Hospital efficiency analysis through individual effects: A Bayesian approach," Discussion Paper 1994-47, Tilburg University, Center for Economic Research.
  20. Fernández, C. & Osiewalski, J. & Steel, M.F.J., 1996. "On the Use of Panel Data in Bayesian Stochastic Frontier Models," Discussion Paper 1996-17, Tilburg University, Center for Economic Research.
  21. Pittman, Russell W, 1983. "Multilateral Productivity Comparisons with Undesirable Outputs," Economic Journal, Royal Economic Society, vol. 93(372), pages 883-91, December.
  22. John F. Geweke, 1995. "Bayesian reduced rank regression in econometrics," Working Papers 540, Federal Reserve Bank of Minneapolis.
  23. Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-80, May.
  24. Bilson, John F O, 1982. "Civil Liberty-An Econometric Investigation," Kyklos, Wiley Blackwell, vol. 35(1), pages 94-114.
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Citations

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Cited by:
  1. David I. Stern, 2003. "The Rise and Fall of the Environmental Kuznets Curve," Rensselaer Working Papers in Economics 0302, Rensselaer Polytechnic Institute, Department of Economics.
  2. Managi, Shunsuke & Kumar, Surender, 2009. "Trade-induced technological change: Analyzing economic and environmental outcomes," Economic Modelling, Elsevier, vol. 26(3), pages 721-732, May.
  3. Fernandez, Carmen & Koop, Gary & Steel, Mark F.J., 2005. "Alternative efficiency measures for multiple-output production," Journal of Econometrics, Elsevier, vol. 126(2), pages 411-444, June.
  4. Kumar, Surender, 2006. "Environmentally sensitive productivity growth: A global analysis using Malmquist-Luenberger index," Ecological Economics, Elsevier, vol. 56(2), pages 280-293, February.
  5. Scott Atkinson & Jeffrey Dorfman, 2005. "Multiple Comparisons with the Best: Bayesian Precision Measures of Efficiency Rankings," Journal of Productivity Analysis, Springer, vol. 23(3), pages 359-382, 07.
  6. Kumar, Surender & Khanna, Madhu, 2009. "Measurement of environmental efficiency and productivity: a cross-country analysis," Environment and Development Economics, Cambridge University Press, vol. 14(04), pages 473-495, August.
  7. Auci, Sabrina & Castelli, Annalisa, 2011. "Pollution and economic growth: a maximum likelihood estimation of environmental Kuznets curve," MPRA Paper 53441, University Library of Munich, Germany.
  8. Neophyta Empora & Theofanis Mamuneas, 2011. "The Effect of Emissions on U.S. State Total Factor Productivity Growth," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 3(2), pages 149-172, October.
  9. Halkos, George & Tzeremes, Nickolaos, 2011. "Does the Kyoto Protocol Agreement matters? An environmental efficiency analysis," MPRA Paper 30652, University Library of Munich, Germany.
  10. Muhammad, Shahbaz & Mihai, Mutascu & Parvez, Azim, 2011. "Environmental Kuznets Curve in Romania and the Role of Energy Consumption," MPRA Paper 32254, University Library of Munich, Germany, revised 15 Jul 2011.
  11. Atkinson, Scott E. & Dorfman, Jeffrey H., 2005. "Bayesian measurement of productivity and efficiency in the presence of undesirable outputs: crediting electric utilities for reducing air pollution," Journal of Econometrics, Elsevier, vol. 126(2), pages 445-468, June.
  12. Kortelainen, Mika, 2008. "Estimation of semiparametric stochastic frontiers under shape constraints with application to pollution generating technologies," MPRA Paper 9257, University Library of Munich, Germany.
  13. Gary Koop & Lise Tole, 2007. "What is the Environmental Performance of Firms Overseas?: An Empirical Investigation of the Global Gold Mining Industry," Working Paper Series 26-07, The Rimini Centre for Economic Analysis, revised Jul 2007.
  14. Auci, Sabrina & Becchetti, Leonardo, 2006. "The instability of the adjusted and unadjusted environmental Kuznets curves," Ecological Economics, Elsevier, vol. 60(1), pages 282-298, November.
  15. Auci, Sabrina & Vignani, Donatella, 2013. "Environmental Kuznets curve and domestic material consumption indicator: an European analysis," MPRA Paper 52882, University Library of Munich, Germany.
  16. repec:ind:nipfwp:29 is not listed on IDEAS

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