This paper examines the very long-run relationship between income and emissions of enteric methane in New Zealand, over the period 1895 to 1996. Controlling the emissions of this particular greenhouse gas is of crucial importance if that country is to meet its obligations as a signatory to the Kyoto Protocol. We use standard parametric regression, nonparametric regression, and a new nonlinear regression estimator based on fuzzy clustering analysis, to estimate 'environmental Kuznets' curves' for methane in New Zealand. Our results appear to be the first to support the existence of some form of 'inverted-U' curve for this pollutant, and the 'double-hump' relationship that emerges from our fuzzy modeling is consistent with certain theoretical results. Methane pollution is maximized at a level of real per capita GDP that is consistent with those reported for other pollutants in the literature.
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Paper provided by Department of Economics, University of Victoria in its series Econometrics Working Papers with number
0306.
Length: 37 pages Date of creation: 06 Jun 2003 Date of revision: Handle: RePEc:vic:vicewp:0306
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Find related papers by JEL classification: C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation O1 - Economic Development, Technological Change, and Growth - - Economic Development Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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