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Modeling the Emissions-Income Relationship Using Long-Run Growth Rates

Author

Listed:
  • Zeba Anjum

    (Crawford School of Public Policy, The Australian National University)

  • Paul J. Burke

    (Crawford School of Public Policy, The Australian National University)

  • Reyer Gerlagh

    (Department of Economics, Tilburg University)

  • David I. Stern

    (Crawford School of Public Policy, The Australian National University)

Abstract

We adopt a new representation of the relationship between emissions and income using long-run growth rates. Our approach allows us to test multiple hypotheses about the drivers of per capita emissions in a single framework and avoid several of the econometric issues that have plagued previous studies. We find that for carbon dioxide emissions, scale, convergence, and resource endowment effects are statistically significant. For sulfur emissions, the scale and convergence effects are significant, there is a strong negative time effect, and non-English legal origin and higher population density are associated with more rapidly declining emissions. The environmental Kuznets effect is not statistically significant in our full sample for either carbon or sulfur.

Suggested Citation

  • Zeba Anjum & Paul J. Burke & Reyer Gerlagh & David I. Stern, 2014. "Modeling the Emissions-Income Relationship Using Long-Run Growth Rates," CCEP Working Papers 1403, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:ccepwp:1403
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Global Energy Use: Decoupling or Convergence?
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2014-12-17 04:46:00
    2. My Year in Review 2014
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2014-12-30 06:58:00
    3. Global Energy Use: Decoupling or Convergence Accepted to be Published in Energy Economics
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2015-08-27 07:55:00
    4. Annual Review 2015
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2015-12-27 03:48:00
    5. Long-run Estimates of Interfuel and Interfactor Elasticities
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2016-01-20 16:11:00
    6. The Environmental Kuznets Curve after 25 Years
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2016-01-04 16:20:00
    7. Dynamics of the Environmental Kuznets Curve
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2016-07-21 15:08:00
    8. Annual Review 2016
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2016-12-26 17:08:00
    9. Annual Review 2017
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2017-12-28 02:26:00

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    Cited by:

    1. Sanchez, Luis F. & Stern, David I., 2016. "Drivers of industrial and non-industrial greenhouse gas emissions," Ecological Economics, Elsevier, vol. 124(C), pages 17-24.
    2. Dobes Leo & Jotzo Frank & Stern David I., 2014. "The Economics of Global Climate Change: A Historical Literature Review," Review of Economics, De Gruyter, vol. 65(3), pages 281-320, December.
    3. Csereklyei, Zsuzsanna & Stern, David I., 2015. "Global energy use: Decoupling or convergence?," Energy Economics, Elsevier, vol. 51(C), pages 633-641.
    4. Paul J. Burke & Md Shahiduzzaman & David I. Stern, 2015. "Carbon dioxide emissions in the short run: The rate and sources of economic growth matter," CAMA Working Papers 2015-12, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    5. Jian-Xin Wu & Ling-Yun He & ZhongXiang Zhang, 2019. "Does China Fall into Poverty-Environment Traps? Evidence from Long-term Income Dynamics and Urban Air Pollution," Working Papers 2019.05, Fondazione Eni Enrico Mattei.
    6. David I. Stern, 2017. "The environmental Kuznets curve after 25 years," Journal of Bioeconomics, Springer, vol. 19(1), pages 7-28, April.
    7. David I. Stern & Jeremy Dijk, 2017. "Economic growth and global particulate pollution concentrations," Climatic Change, Springer, vol. 142(3), pages 391-406, June.
    8. Jalles, Joao Tovar & Ge, Jun, 2020. "Emissions and economic development in commodity exporting countries," Energy Economics, Elsevier, vol. 85(C).
    9. Atwi, Majed & Barberán, Ramón & Mur, Jesús & Angulo, Ana, 2018. "CO2 Kuznets Curve Revisited: From Cross-Sections to Panel Data Models," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 40, pages 169-196.
    10. Pablo-Romero, María del P. & Sánchez-Braza, Antonio, 2017. "Residential energy environmental Kuznets curve in the EU-28," Energy, Elsevier, vol. 125(C), pages 44-54.
    11. Dhimitri Qirjo & Razvan Pascalau, 2021. "Would economic growth affect air pollution in light of the potential transatlantic trade and investment partnership?," International Economics and Economic Policy, Springer, vol. 18(1), pages 127-156, February.
    12. Pablo-Romero, M.P. & Cruz, L. & Barata, E., 2017. "Testing the transport energy-environmental Kuznets curve hypothesis in the EU27 countries," Energy Economics, Elsevier, vol. 62(C), pages 257-269.
    13. Burke, Paul J. & Csereklyei, Zsuzsanna, 2016. "Understanding the energy-GDP elasticity: A sectoral approach," Energy Economics, Elsevier, vol. 58(C), pages 199-210.
    14. Stern, David I., 2014. "The Environmental Kuznets Curve: A Primer," Working Papers 249424, Australian National University, Centre for Climate Economics & Policy.
    15. Xiaosheng Li & Xia Yan & Qingxian An & Ke Chen & Zhen Shen, 2016. "The coordination between China’s economic growth and environmental emission from the Environmental Kuznets Curve viewpoint," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 83(1), pages 233-252, August.
    16. David I. Stern & Donglan Zha, 2016. "Economic growth and particulate pollution concentrations in China," CCEP Working Papers 1603, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
    17. Octavio Fernández-Amador & Doris A. Oberdabernig & Patrick Tomberger, 2019. "Testing for Convergence in Carbon Dioxide Emissions Using a Bayesian Robust Structural Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1265-1286, August.
    18. Rehermann, F. & Pablo-Romero, M., 2018. "Economic growth and transport energy consumption in the Latin American and Caribbean countries," Energy Policy, Elsevier, vol. 122(C), pages 518-527.
    19. Pascalau, Razvan & Qirjo, Dhimitri, 2017. "TTIP and the Environmental Kuznets Curve," MPRA Paper 80192, University Library of Munich, Germany.

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    More about this item

    Keywords

    Economic growth; decoupling; pollution; environmental Kuznets curve; convergence;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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