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The Effects of Economic and Political Freedom on CO2 Emissions

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Author Info
Carlsson, Fredrik () (Department of Economics, School of Economics and Commercial Law, Göteborg University)
Lundström, Susanna (Department of Economics, School of Economics and Commercial Law, Göteborg University)

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Abstract

In this paper we investigate the effects of political and economic freedom on CO2 emissions. As far as we know this is the first cross-country study of the relationship between economic freedom and environmental quality. Economic freedom is measured in several ways. We find that increased price stability and legal structure decrease emissions in countries with a small industry share of GDP, but increases emissions in countries with a large industry share of GDP. The decreasing effect from increased use of market is significant but non-robust, and increased freedom to trade does not have any significant effect. The effect of political freedom on CO2 emissions is insignificant, most probably since CO2 emissions is a global environmental problem and hence subject to free-riding by the individual countries.

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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 29.

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Length: 16 pages
Date of creation: 27 Sep 2000
Date of revision: 21 Aug 2001
Handle: RePEc:hhs:gunwpe:0029

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Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: Carbon Dioxide; Economic Freedom; Institutions; Political Freedom;

Find related papers by JEL classification:
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

References listed on IDEAS
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.:

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  2. Lopez, Ramon, 1997. "Environmental externalities in traditional agriculture and the impact of trade liberalization: the case of Ghana," Journal of Development Economics, Elsevier, vol. 53(1), pages 17-39, June. [Downloadable!] (restricted)
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  4. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Robert Deacon, 1999. "The Political Economy of Environment-Development Relationships: A Preliminary Framework," University of California at Santa Barbara, Economics Working Paper Series wp11-99, Department of Economics, UC Santa Barbara. [Downloadable!]
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  6. 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. [Downloadable!] (restricted)
  7. Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 401-416, November. [Downloadable!]
  8. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-63, September. [Downloadable!] (restricted)
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  9. Barro, Robert J, 1996. " Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
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  11. de Haan, Jakob & Sturm, Jan-Egbert, 2000. "On the relationship between economic freedom and economic growth," European Journal of Political Economy, Elsevier, vol. 16(2), pages 215-241, June. [Downloadable!] (restricted)
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  12. Shafik, Nemat, 1994. "Economic Development and Environmental Quality: An Econometric Analysis," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 757-73, Supplemen. [Downloadable!] (restricted)
  13. 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. [Downloadable!] (restricted)
  14. Carlsson, Fredrik & Lundstrom, Susanna, 2002. " Economic Freedom and Growth: Decomposing the Effects," Public Choice, Springer, vol. 112(3-4), pages 335-44, September. [Downloadable!] (restricted)
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  15. Hilton, F. G. Hank & Levinson, Arik, 1998. "Factoring the Environmental Kuznets Curve: Evidence from Automotive Lead Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 35(2), pages 126-141, March. [Downloadable!] (restricted)
  16. 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. [Downloadable!]
  17. Magnani, Elisabetta, 2000. "The Environmental Kuznets Curve, environmental protection policy and income distribution," Ecological Economics, Elsevier, vol. 32(3), pages 431-443, March. [Downloadable!] (restricted)
  18. Islam, Sadequl, 1996. "Economic Freedom, Per Capita Income and Economic Growth," Applied Economics Letters, Taylor and Francis Journals, vol. 3(9), pages 595-97, September. [Downloadable!] (restricted)
  19. Unruh, G. C. & Moomaw, W. R., 1998. "An alternative analysis of apparent EKC-type transitions," Ecological Economics, Elsevier, vol. 25(2), pages 221-229, May. [Downloadable!] (restricted)
  20. James D. Gwartney & Robert A. Lawson & Randall G. Holcombe, 1999. "Economic Freedom and the Environment for Economic Growth," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(4), pages 643-, December. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Michael Lamla, 2007. "Long-run Determinants of Pollution: A Robustness Analysis," KOF Working papers 07-164, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
  2. Martin Gassebner & Michael Lamla & Jan-Egbert Sturm, 2006. "Economic, Demographic and Political Determinants of Pollution Reassessed: A Sensitivity Analysis," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
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