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Determinants of CO2 emissions in open economies: testing the environmental Kuznets curve hypothesis (1970-2000)

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  • Mota, Rui Pedro
  • Dias, João

Abstract

We address the problem of estimating an environmental Kuznets curve for CO2 in open economies. The novelty is that we follow a time series approach. The objective is, �first to answer a critique concerning the liability of Kuznets curves estimations when using cross-section data. For most of the countries analyzed here there is no evidence of a Kuznet curve,though when using cross-section data there is a Kuznet curve. Second, when using cross-section data it allows to test for other hypothesis concerning the functioning of the economy and pollution emissions. In particular we test hypothesis concerning the structure of the economy, the degree of openness of the economy, the in�uence of short-term fl�uctuations of economic growth and climate effects (when data is available). Moreover we test for the existence of a linear, a quadratic and a cubic relation between GNP and CO2 emissions. Most evidence is in favour of a cubic relation for each country. For some countries the time series are not cointegrated, hence the model could not be estimated with econometric security.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13342.

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Date of creation: 02 Feb 2006
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Handle: RePEc:pra:mprapa:13342

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Keywords: Environmental Kuznet curve; Open economies; Time series;

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References

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  1. Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C. S. & Jansson, Bengt-Owe & Levin, Simon & Maler, Karl-Goran & Perrings, Charles & Pimentel, David, 1995. "Economic growth, carrying capacity, and the environment," Ecological Economics, Elsevier, vol. 15(2), pages 91-95, November.
  2. Kaufmann, Robert K. & Davidsdottir, Brynhildur & Garnham, Sophie & Pauly, Peter, 1998. "The determinants of atmospheric SO2 concentrations: reconsidering the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 25(2), pages 209-220, May.
  3. Friedl, Birgit & Getzner, Michael, 2003. "Determinants of CO2 emissions in a small open economy," Ecological Economics, Elsevier, vol. 45(1), pages 133-148, April.
  4. David I. Stern, 2003. "The Rise and Fall of the Environmental Kuznets Curve," Rensselaer Working Papers in Economics 0302, Rensselaer Polytechnic Institute, Department of Economics.
  5. Torras, Mariano & Boyce, James K., 1998. "Income, inequality, and pollution: a reassessment of the environmental Kuznets Curve," Ecological Economics, Elsevier, vol. 25(2), pages 147-160, May.
  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.
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Cited by:
  1. Schlauch, Michael & Palmisano, Gaia, 2013. "The Transition from the Neoclassical Growth Model to Ecology," MPRA Paper 45867, University Library of Munich, Germany.

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