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Modeling the emissions–income relationship using long-run growth rates

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  • Stern, David I.
  • Gerlagh, Reyer
  • Burke, Paul J.

Abstract

The authors adopt a new approach to modeling the relationship between emissions and income using long-run per capita growth rates. This approach allows them to test multiple hypotheses about the drivers of per capita emissions in a single framework and avoid several of the econometric issues that have plagued the environmental Kuznets curve literature. They estimate models for carbon and sulfur dioxide emissions. They can reject restricted models that omit either growth or beta convergence effects. Although the term representing the environmental Kuznets effect is statistically significant for per capita carbon and sulfur dioxide emissions, the estimated income per capita turning points are out of the sample for the full data set.

Suggested Citation

  • Stern, David I. & Gerlagh, Reyer & Burke, Paul J., 2017. "Modeling the emissions–income relationship using long-run growth rates," Environment and Development Economics, Cambridge University Press, vol. 22(6), pages 699-724, December.
    • Handle: RePEc:cup:endeec:v:22:y:2017:i:06:p:699-724_00
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    Citations

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    Cited by:

    1. Guglielmo Maria Caporale & Gloria Claudio-Quiroga & Luis A. Gil-Alana, 2021. "Analysing the relationship between CO2 emissions and GDP in China: a fractional integration and cointegration approach," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-16, December.
    2. Sheng, Pengfei & Li, Jun & Zhai, Mengxin & Huang, Shoujun, 2020. "Coupling of economic growth and reduction in carbon emissions at the efficiency level: Evidence from China," Energy, Elsevier, vol. 213(C).
    3. Dhimitri Qirjo & Razvan Pascalau, 2021. "Would economic growth affect air pollution in light of the potential transatlantic trade and investment partnership?," International Economics and Economic Policy, Springer, vol. 18(1), pages 127-156, February.
    4. Alexandra-Anca Purcel, 2020. "New insights into the environmental Kuznets curve hypothesis in developing and transition economies: a literature survey," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(4), pages 585-631, October.
    5. Jian-Xin Wu & Ling-Yun He & ZhongXiang Zhang, 2019. "Does China Fall into Poverty-Environment Traps? Evidence from Long-term Income Dynamics and Urban Air Pollution," Working Papers 2019.05, Fondazione Eni Enrico Mattei.
    6. Blampied, Nicolás, 2021. "Economic growth, environmental constraints and convergence," Ecological Economics, Elsevier, vol. 181(C).
    7. Ioannis Dokas & Minas Panagiotidis & Stephanos Papadamou & Eleftherios Spyromitros, 2022. "The Determinants of Energy and Electricity Consumption in Developed and Developing Countries: International Evidence," Energies, MDPI, vol. 15(7), pages 1-30, March.
    8. Best, Rohan & Burke, Paul J., 2018. "Electricity availability: A precondition for faster economic growth?," Energy Economics, Elsevier, vol. 74(C), pages 321-329.
    9. T. Daniel Coggin, 2023. "CO2, SO2 and economic growth: a cross-national panel study," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 47(2), pages 437-457, June.
    10. Cohen, Gail & Jalles, Joao Tovar & Loungani, Prakash & Marto, Ricardo, 2018. "The long-run decoupling of emissions and output: Evidence from the largest emitters," Energy Policy, Elsevier, vol. 118(C), pages 58-68.
    11. Filippidis, Michail & Tzouvanas, Panagiotis & Chatziantoniou, Ioannis, 2021. "Energy poverty through the lens of the energy-environmental Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 100(C).
    12. Rohan Best & Paul J. Burke & Frank Jotzo, 2020. "Carbon Pricing Efficacy: Cross-Country Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(1), pages 69-94, September.
    13. Edwards, Ryan B. & Naylor, Rosamond L. & Higgins, Matthew M. & Falcon, Walter P., 2020. "Causes of Indonesia’s forest fires," World Development, Elsevier, vol. 127(C).
    14. Wu, Jian-Xin & He, Ling-Yun & Zhang, ZhongXiang, 2022. "On the co-evolution of PM2.5 concentrations and income in China: A joint distribution dynamics approach," Energy Economics, Elsevier, vol. 105(C).
    15. Arminen, Heli & Menegaki, Angeliki N., 2019. "Corruption, climate and the energy-environment-growth nexus," Energy Economics, Elsevier, vol. 80(C), pages 621-634.

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