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Environmental Kuznets Curves for Carbon Emissions: A Critical Survey

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  • Nektarios Aslanidis

    (University Rovira Virgili)

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    Abstract

    The empirical finding of an inverse U-shaped relationship between per capita income and pollution, the so-called Environmental Kuznets Curve (EKC), suggests that as countries experience economic growth, environmental deterioration decelerates and thus becomes less of an issue. Focusing on the prime example of carbon emissions, the present article provides a critical review of the new econometric techniques that have questioned the baseline polynomial specification in the EKC literature. We discuss issues related to the functional form, heterogeneity, “spurious” regressions and spatial dependence to address whether and to what extent the EKC can be observed. Despite these new approaches, there is still no clear-cut evidence supporting the existence of the EKC for carbon emissions.

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    Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.75.

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    Date of creation: Sep 2009
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    Handle: RePEc:fem:femwpa:2009.75

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    Keywords: Environmental Kuznets Curve; Carbon Emissions; Functional Form; Heterogeneity; “Spurious” Regressions; Spatial Dependence;

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    Cited by:
    1. Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "Energy consumption, pollutant emissions and economic growth in South Africa," Energy Economics, Elsevier, vol. 32(6), pages 1374-1382, November.
    2. Giovanni Bella & Carla Massidda & Ivan Etzo, 2013. "A Panel Estimation of the Relationship between Income, Electric Power Consumption and CO2 Emissions," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 59(2), pages 149-166.
    3. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2013. "Is there an environmental Kuznets curve for water use? A panel smooth transition regression approach," Economic Modelling, Elsevier, vol. 31(C), pages 518-527.
    4. J. Humberto Lopez & Rashmi Shankar, 2011. "Getting the Most Out of Free Trade Agreements in Central America," World Bank Publications, The World Bank, number 2322, October.
    5. Chirok Han & Hyelim Lee, 2013. "Dependence Of Economic Growth On Co2 Emissions," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(1), pages 47-57, March.

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