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A Dual Assessment of the Environmental Kuznets Curve: The Case of Sweden

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  • Ankarhem, Mattias

    (Department of Economics, Umeå University)

Abstract

In this paper, we calculate time series of shadow prices for Swedish emissions of CO2, SO2, and VOC for the period 1918 - 1994. Newly constructed historical emission time series enable studying a single country’s emission paths through increasing levels of economic activity. The shadow prices are, in the next step, related to income to explain the environmental Kuznets curves (EKC) previously found in Swedish data for these three emissions. A directional distance function approach is used to estimate the production process for Swedish industry thus enabling the opportunity costs of a reduction in these emissions to be calculated. We attribute the annual changes in the shadow prices to the main causal factors by decomposing them into a technological effect and a substitution effect. We conclude that the time series of the shadow prices show support for EKCs for Swedish industry

Suggested Citation

  • Ankarhem, Mattias, 2005. "A Dual Assessment of the Environmental Kuznets Curve: The Case of Sweden," Umeå Economic Studies 660, Umeå University, Department of Economics.
    • Handle: RePEc:hhs:umnees:0660
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    References listed on IDEAS

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    Cited by:

    1. Anna Shostya, 2016. "Ambient Air Pollution in China: Predicting a Turning Point," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(3), pages 295-307, August.

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    More about this item

    Keywords

    Emissions; Historical time series; Decomposition; Directional distance function;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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

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