Environmental Kuznets Curve for carbon dioxide emissions: lack of robustness to heterogeneity?
AbstractThis paper focuses solely on the energy consumption, carbon dioxide ( 2 CO ) emissions and economic growth nexus applying the iterative Bayesian shrinkage procedure. The environmental Kuznets curve (EKC) hypothesis is tested using this method for the first time in this literature and the results obtained suggest that: first, the EKC hypothesis is rejected for 49 out of the 51 countries considered when heterogeneity in countries' energy efficiencies and cross-country differences in the 2 CO emissions trajectories are accounted for; second, a classification of the results with respect to countries' development levels reveals that an overall inverted U-shape curve is due to the fact that increase in gross domestic product (GDP) in the high-income countries decreases emissions, while in the low-income countries it increases emissions.
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Date of creation: 29 Jul 2012
Date of revision:
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Environmental Kuznets curve; Bayesian shrinkage estimator; Heterogeneity;
Other versions of this item:
- Jobert, Thomas & Karanfil, Fatih & Tykhonenko, Anna, 2012. "Environmental Kuznets curve for carbon dioxide emissions: lack of robustness to heterogeneity?," GIAM Working Papers 12-7, Galatasaray University Economic Research Center.
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O44 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
- NEP-ENE-2012-08-23 (Energy Economics)
- NEP-ENV-2012-08-23 (Environmental Economics)
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