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Economic Growth and CO2 Emissions: a Nonparametric Approach

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Author Info
Théophile AZOMAHOU
NGUYEN Van Phu

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Abstract

This paper examines the empirical interplay between economic growth and greenhouse gas emissions using panel data.Relying on nonparametric methods, we find evidence supporting specifications which assume the constancy of the relationship between per capita CO2 emissions and per capita GDP during the period of the study. Moreover, the usually adopted polynomial functional form is rejected against our nonparametric modelling. It is shown that the relationship between gas emissions and GDP displays more complex patterns, despite its monotonous shape, than the well-known Kuznets curve obtained from ad hoc parametric specifications. The economic development process has a negative effect on gas emissions, especially for the early and the advanced stages of development. As a result, developed countries as well as developing countries should make efforts to reduce CO2 emissions.

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Paper provided by Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg in its series Working Papers of BETA with number 2001-01.

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Date of creation: 2001
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Handle: RePEc:ulp:sbbeta:2001-01

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Related research
Keywords: CO2 emissions; Economic development; Environmental Kuznets curve; Nonparametric estimation; Panel data;

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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  14. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
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  15. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November. [Downloadable!] (restricted)
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  5. Vollebergh, Herman R.J. & Dijkgraag, Elbert & Melenberg, Bertrand, 2005. "Environmental Kuznets curves for CO2 : heterogeneity versus homogeneity," Discussion Paper 25, Tilburg University, Center for Economic Research. [Downloadable!]
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  11. Marzio Galeotti, 2003. "Economic Development and Environmental Protection," Working Papers 2003.89, Fondazione Eni Enrico Mattei. [Downloadable!]
  12. Rachel Levy & Paul Muller, 2006. "Do academic laboratories correspond to scientific communities? Evidence from a large European university," Working Papers of BETA 2006-15, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
  13. Sofia Pessoa e Costa & Stéphane Robin, 2007. "The Impact Of Training Programmes On Wages In France: An Evaluation Of The “Qualifying Contract” Using Propensity Scores," Working Papers of BETA 2007-18, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
  14. Marzio Galeotti & Matteo Manera & Alessandro Lanza, 2006. "On the Robustness of Robustness Checks of the Environmental Kuznets Curve," Working Papers 2006.22, Fondazione Eni Enrico Mattei. [Downloadable!]
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  15. Li Qin & Eleftherios Spyromitros & Moïse Sidiropoulos, 2007. "Monetary Policy with Uncertain Central Bank Preferences for Robustness," Working Papers of BETA 2007-23, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
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