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Rule of law and the Environmental Kuznets Curve: evidence for carbon emissions

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Author Info

  • Concetta Castiglione

    ()
    (Department of Economics, Trinity College Dublin (Ireland))

  • Davide Infante

    ()
    (Department of Economics and Statistics, University of Calabria (Italy))

  • Janna Smirnova

    ()
    (Department of Economics and Statistics, University of Calabria (Italy))

Abstract

In response to recently growing literature investigating the relationship between environment and institutions, this study investigates how rule of law influences the level of income at the turning point of the Environmental Kuznets Curve (EKC). Using an alternative specification of EKC that avoids nonlinear transformation of potentially nonstationary regressors, investigated by Bradford et al. (2005) and Leitao (2010), we find the evidence for the EKC in European countries for carbon emissions. Our results find a negative relationship between pollution and rule of law, demonstrating that when rule of law is strong, the turning point of the EKC occurs at a lower level of income per capita, thus, decreasing emissions. In terms of policy implication, our study suggests that institutional reinforcement should deserve close attention in designing and enforcing policies that limit environmental degradation.

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File URL: http://www.tcd.ie/Economics/TEP/2011/TEP0111.pdf
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Bibliographic Info

Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number tep0111.

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Length: 14 pages
Date of creation: Jan 2011
Date of revision:
Handle: RePEc:tcd:tcduee:tep0111

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Postal: Trinity College, Dublin 2
Phone: (+ 353 1) 6081325
Fax: 6772503
Web page: http://www.tcd.ie/Economics/
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Keywords: Environmental Kuznets Curve; Rule of law; Panel data; Turning point;

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  1. Lopez, Ramon & Mitra, Siddhartha, 2000. "Corruption, Pollution, and the Kuznets Environment Curve," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 137-150, September.
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Cited by:
  1. Castiglione, Concetta & Infante, Davide & Smirnova, Janna, 2012. "Rule of law and its implications for the environmental taxation-income path across European Countries," MPRA Paper 39433, University Library of Munich, Germany.
  2. Christopher Jeffords & Lanse Minkler, 2014. "Do Constitutions Matter? The Effects of Constitutional Environmental Rights Provisions on Environmental Outcomes," Working papers 2014-16, University of Connecticut, Department of Economics.

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