Is There an Environmental Kuznets Curve for Energy? An Econometric Analysis
AbstractThe Environmental Kuznets Curve (EKC) hypothesis states that pollution levels are increasing as a country develops, but will begin to decrease as rising incomes pass beyond a turning point. EKC analyses test the relationship between a measure of environmental quality and income (usually expressed in a quadratic equation). Other explanatory variables have been included in these models, but income regularly has had the most significant effect on indicators of environmental quality. One variable consistently omitted in these relationships is energy prices. This paper analyzes previous models to illustrate the importance of prices in these models and then includes prices in an econometric EKC framework testing energy/income and CO2/income relationships. These long-run price/income models find that income is no longer the most relevant indicator of environmental quality or energy demand. Indeed, we find no significant evidence for the existence of an EKC within the range of current incomes for energy in the presence of price and trade variables.
Download InfoIf 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.
Bibliographic InfoPaper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 127834.
Date of creation: Jul 1997
Date of revision:
Environmental Economics and Policy; Resource /Energy Economics and Policy;
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.:
- Summers, Robert & Heston, Alan, 1991. "The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 327-68, May.
- Grossman, Gene M & Krueger, Alan B, 1995.
"Economic Growth and the Environment,"
The Quarterly Journal of Economics,
MIT Press, vol. 110(2), pages 353-77, May.
- 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.
- Douglas Holtz-Eakin & Thomas M. Selden, 1992. "Stoking the Fires? Co2 Emissions and Economic Growth," NBER Working Papers 4248, National Bureau of Economic Research, Inc.
- J. M. Reilly & J. A. Edmonds & R. H. Gardner & A. L. Brenkerf, 1987. "Uncertainty Analysis of the IEA/ORAU CO2 Emissions Model," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-29.
- Costanza, Robert, 1995. "Economic growth, carrying capacity, and the environment," Ecological Economics, Elsevier, vol. 15(2), pages 89-90, November.
- Tucker, Michael, 1995. "Carbon dioxide emissions and global GDP," Ecological Economics, Elsevier, vol. 15(3), pages 215-223, December.
- Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C.S. & Jansson, Bengt-Owe & Levin, Simon & Mäler, Karl-Göran & Perrings, Charles & Pimentel, David, 1996.
"Economic growth, carrying capacity, and the environment,"
Environment and Development Economics,
Cambridge University Press, vol. 1(01), pages 104-110, February.
- Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C. S. & Jansson, Bengt-Owe & Levin, Simon & Maler, Karl-Goran & Perrings, Charles & Pimentel, David, 1995. "Economic growth, carrying capacity, and the environment," Ecological Economics, Elsevier, vol. 15(2), pages 91-95, November.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.