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Diffusion of Emissions Abating Technology

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Author Info
David I. Stern () (Department of Economics, Rensselaer Polytechnic Institute, Troy, NY 12180-3590, USA)

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Abstract

The environmental Kuznets curve (EKC) has been extensively criticized on econometric and theoretical grounds. Recent econometric results and case studies show that national emissions of important pollutants are monotonic in income but changes in technology can lead over time to reductions in pollution - a lowering of the EKC - and that pollution reducing innovations and standards may be adopted with relatively short time lags in some developing countries. This study combines the recent literature on measuring environmental efficiency and technological change using production frontier methods with the use of the Kalman filter - a time series method for signal extraction - to model the state of abatement technology in a panel of countries over time. The EKC is reformulated as the best practice technology frontier - countries' position relative to the frontier reflects the degree to which they have adopted best practice. The results are used to determine whether countries are converging to best practice over time and how many years it will take each country to achieve current best practice. The model is applied to sulfur dioxide emissions from sixteen mainly developed countries.

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Paper provided by Rensselaer Polytechnic Institute, Department of Economics in its series Rensselaer Working Papers in Economics with number 0420.

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Date of creation: Sep 2004
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Handle: RePEc:rpi:rpiwpe:0420

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

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Cited by:
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  1. Albu, Lucian Liviu, 2007. "Spatial Econometrics - Applications To Investigate Distribution Of Co2 Emission In Europe," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(1), pages 45-56, March. [Downloadable!]
  2. David I. Stern, 2005. "The Effect of NAFTA on Energy and Environmental Efficiency in Mexico," Rensselaer Working Papers in Economics 0511, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
  3. David I. Stern, 2005. "Reversal in the Trend of Global Anthropogenic Sulfur Emissions," Rensselaer Working Papers in Economics 0504, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
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