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A Spatial Dynamic Panel Analysis of the Environmental Kuznets Curve in European Countries

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  • Hermann Pythagore Pierre Donfouet

    (CREM CNRS, UMR 6211, University of Rennes 1, France)

  • P. Wilner Jeanty

    (Kinder Institute for Urban Research & Hobby Center for the Study of Texas Rice University)

  • Eric Malin

    (CREM CNRS, UMR 6211, University of Rennes 1, France)

Abstract

Previous studies in the environmental Kuznets curve have overlooked spatial interdependence and this could bias the estimates. This paper therefore addresses the issue of spatial interdependence in the environmental Kuznets curve by using panel data on European countries over the period of 1961-2009. The results obtained from the spatial dynamic panel suggest a significant degree of persistence in the per capita CO2 emissions in European countries over time. Furthermore, it has been found that per capita CO2 emissions in a nearby country lead to a domestic increase in per capita CO2 emissions and overall, the results are robust irrespective of the concept of neighborhood.

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Bibliographic Info

Paper provided by Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS in its series Economics Working Paper Archive (University of Rennes 1 & University of Caen) with number 201318.

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Date of creation: Jun 2013
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Handle: RePEc:tut:cremwp:201318

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Keywords: Environmental Kuznets curve; spatial dynamic panel;

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  1. Salima Bouayad-Agha & Lionel V�drine, 2010. "Estimation Strategies for a Spatial Dynamic Panel using GMM. A New Approach to the Convergence Issue of European Regions," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(2), pages 205-227.
  2. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
  3. Richard Schmalensee & Thomas M. Stoker & Ruth A. Judson, 1998. "World Carbon Dioxide Emissions: 1950-2050," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 15-27, February.
  4. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  5. P. Wilner Jeanty, 2010. "SPWMATRIX: Stata module to generate, import, and export spatial weights," Statistical Software Components S457111, Boston College Department of Economics, revised 15 Mar 2014.
  6. Maddison, David, 2006. "Environmental Kuznets curves: A spatial econometric approach," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 218-230, March.
  7. Burnett, J. Wesley & Bergstrom, John C., 2010. "U.S. State-Level Carbon Dioxide Emissions: A Spatial-Temporal Econometric Approach of the Environmental Kuznets Curve," Faculty Series 96031, University of Georgia, Department of Agricultural and Applied Economics.
  8. C.-Y. Cynthia Lin & Zachary D. Liscow, 2013. "Endogeneity in the Environmental Kuznets Curve: An Instrumental Variables Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 268-274.
  9. Aurelia Bengochea-Morancho & Francisco Higón-Tamarit & Inmaculada Martínez-Zarzoso, 2001. "Economic Growth and CO2 Emissions in the European Union," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 19(2), pages 165-172, June.
  10. Bhattarai, Madhusudan & Hammig, Michael, 2001. "Institutions and the Environmental Kuznets Curve for Deforestation: A Crosscountry Analysis for Latin America, Africa and Asia," World Development, Elsevier, vol. 29(6), pages 995-1010, June.
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