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The relationship between economic growth and environmental quality: the contributions of economic structure and agricultural policies

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  • Carillo, Felicetta
  • Maietta, Ornella Wanda

Abstract

Objectives of this paper is to verify whether the relationship between the level of per capita income and the environment quality, for the Italian regions, follows the prescription of an Environmental Kuznets Curve (EKC), taking into account the contribution of agriculture and rural areas. The Arellano-Bond two-step dynamic panel data GMM estimator has been applied to a data set of the 20 Italian administrative regions referred to the 2000-‘06 years. The quality of environment is represented by the level of per capita CO2 emissions from the whole economy and the level of per capita CO2 emissions from agriculture. The regression results show that i) the EKC prescription holds for the Italian regions, ii) the more agricultural regions are found on the rising section of the curve; iii) a greater intensity of expenditure under the RDP regional agro-environmental and forestry measures is positively associated to a more degraded environment.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 126th Seminar, June 27-29, 2012, Capri, Italy with number 128206.

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Date of creation: Jun 2012
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Handle: RePEc:ags:eaa126:128206

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Keywords: Environmental Kuznets Curve; Agriculture; Agricultural Policy; Regional panel data; Community/Rural/Urban Development; Environmental Economics and Policy; Q01; Q15; R11;

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  1. 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.
  2. Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May.
  3. 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, vol. 24(7), pages 1151-1160, July.
  4. Panayotou, Theodore, 1997. "Demystifying the environmental Kuznets curve: turning a black box into a policy tool," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 465-484, November.
  5. Everett, Tim & Ishwaran, Mallika & Ansaloni, Gian Paolo & Rubin, Alex, 2010. "Economic growth and the environment," MPRA Paper 23585, University Library of Munich, Germany.
  6. Eleonora Cavallaro, 2002. "Crescita, ambiente e commercio internazionale in un modello con innovazioni tecnologiche," Working Papers 48, University of Rome La Sapienza, Department of Public Economics.
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