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A Panel Estimation of the Relationship between Income, Electric Power Consumption and CO2 Emissions

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  • Giovanni Bella
  • Carla Massidda
  • Ivan Etzo

Abstract

This paper aims to make a contribution to the still questioned bell-shaped relationship between carbon dioxide emissions and economic growth, which is commonly known in the literature as the Environmental Kuznets Curve hypothesis. In particular, it provides a panel analysis of a group of 82 countries, including 26 OECD and 56 non-OECD countries, over the period 1980?2009. We specify the estimated model by taking into account the role of electric power consumption, and compare the performance of alternative panel estimators for a quadratic and cubic specification of the empirical model. Our findings seem to favor the EKC relationship for the entire sample. This outcome is fully confirmed for the OECD group of countries, whereas for the non-OECD sub-sample, a monotonically increasing relationship between CO2 and GDP seems to hold.

Suggested Citation

  • Giovanni Bella & Carla Massidda & Ivan Etzo, 2013. "A Panel Estimation of the Relationship between Income, Electric Power Consumption and CO2 Emissions," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 59(2), pages 149-166.
    • Handle: RePEc:aeq:aeqaeq:v59_y2013_i2_q2_p149-166
    DOI: 10.3790/aeq.59.2.149
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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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