Assessing the functional relationship between CO2 emissions and economic development using an additive mixed model approach
Researchers have suggested that the relationship between the emission of carbon dioxide per capita and the real gross domestic product per capita follows an inverted-U-shaped (so-called environmental Kuznets) curve. Studies have generally used polynomial regression (quadratic or cubic form) to investigate this relationship. It has been recognised that polynomials are not that flexible and that, by choosing the degree of the polynomial, researchers make a priori assumptions. In this paper, we investigate the environmental Kuznets curve hypothesis using a flexible approach from additive mixed models. Such models are well-suited to handle nonlinear covariate effects flexibly and to simultaneously deal with temporal error structure. We consider the following countries: Australia, Austria, Canada, Denmark, Finland, France, Italy, Spain and Switzerland. Our results show the existence of the classic environmental Kuznets curve for France and Switzerland, and of a nonlinear (increasing) relationship for Australia, Italy and Spain. For Austria, the evidence reveals a weak N-shaped relationship. New nonlinear shapes are found for Finland (inverted-L-shape relationship), Canada (a special case of the inverted-L-shape relationship), and Denmark (M-shape relationship). Our findings are complemented by the calculation of the elasticity of the carbon dioxide emission per capita as a percentage of each level of real gross domestic product per capita.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Krivobokova, Tatyana & Kauermann, Goran, 2007. "A Note on Penalized Spline Smoothing With Correlated Errors," Journal of the American Statistical Association, American Statistical Association, vol. 102, pages 1328-1337, December.
- Roy, Nilanjana & Cornelis van Kooten, G., 2004.
"Another look at the income elasticity of non-point source air pollutants: a semiparametric approach,"
Elsevier, vol. 85(1), pages 17-22, October.
- Nilanjana Roy & G. Cornelis van Kooten, 2004. "Another Look at the Income Elasticity of Non-Point Source Air Pollutants: A Semiparametric Approach," Working Papers 2004-07, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
- Owen, Anthony D., 2011. "The economic viability of nuclear power in a fossil-fuel-rich country: Australia," Energy Policy, Elsevier, vol. 39(3), pages 1305-1311, March.
- Taskin, Fatma & Zaim, Osman, 2000. "Searching for a Kuznets curve in environmental efficiency using kernel estimation," Economics Letters, Elsevier, vol. 68(2), pages 217-223, August.
- Hanley, Nicholas & Turner, Karen, 2010.
"Energy Efficiency, Rebound Effects and the Environmental Kuznets Curve,"
Stirling Economics Discussion Papers
2010-17, University of Stirling, Division of Economics.
- Turner, Karen & Hanley, Nick, 2011. "Energy efficiency, rebound effects and the environmental Kuznets Curve," Energy Economics, Elsevier, vol. 33(5), pages 709-720, September.
- Matthew Cole, 2005. "Re-examining the pollution-income relationship: a random coefficients approach," Economics Bulletin, AccessEcon, vol. 14(1), pages 1-7.
- List, John A. & Gallet, Craig A., 1999.
"The environmental Kuznets curve: does one size fit all?,"
Elsevier, vol. 31(3), pages 409-423, December.
- Craig Gallet & John List, 1999. "The environmental Kuznets curve: does one size fit all," Natural Field Experiments 00527, The Field Experiments Website.
- Hughes, Larry & Chaudhry, Nikhil, 2011. "The challenge of meeting Canada's greenhouse gas reduction targets," Energy Policy, Elsevier, vol. 39(3), pages 1352-1362, March.
- Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992.
"Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?,"
Journal of Econometrics,
Elsevier, vol. 54(1-3), pages 159-178.
- Kwiatkowski, D. & Phillips, P.C.B. & Schmidt, P., 1990. "Testing the Null Hypothesis of Stationarity Against the Alternative of Unit Root : How Sure are we that Economic Time Series have a Unit Root?," Papers 8905, Michigan State - Econometrics and Economic Theory.
- Denis Kwiatkowski & Peter C.B. Phillips & Peter Schmidt, 1991. "Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure Are We That Economic Time Series Have a Unit Root?," Cowles Foundation Discussion Papers 979, Cowles Foundation for Research in Economics, Yale University.
- Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
- Engle, Robert & Granger, Clive, 2015.
"Co-integration and error correction: Representation, estimation, and testing,"
Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
- Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
- Jaunky, Vishal Chandr, 2011. "The CO2 emissions-income nexus: Evidence from rich countries," Energy Policy, Elsevier, vol. 39(3), pages 1228-1240, March.
- Azomahou, Théophile & Laisney, François & van Phu, Nguyen, 2005.
"Economic Development and CO2 Emissions: A Nonparametric Panel Approach,"
ZEW Discussion Papers
05-56, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Azomahou, Theophile & Laisney, Francois & Nguyen Van, Phu, 2006. "Economic development and CO2 emissions: A nonparametric panel approach," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1347-1363, August.
- Phillips, Peter C B & Ouliaris, S, 1990.
"Asymptotic Properties of Residual Based Tests for Cointegration,"
Econometric Society, vol. 58(1), pages 165-93, January.
- Tom Doan, . "POTEST: RATS procedure to perform Phillips-Ouliaris-Hansen test for Cointegration," Statistical Software Components RTS00247, Boston College Department of Economics.
- Tom Doan, . "POTESTRESIDS: RATS procedure to perform Phillips-Ouliaris-Hansen test for Cointegration on 1st stage residuals," Statistical Software Components RTS00248, Boston College Department of Economics.
- Peter C.B. Phillips & Sam Ouliaris, 1987. "Asymptotic Properties of Residual Based Tests for Cointegration," Cowles Foundation Discussion Papers 847R, Cowles Foundation for Research in Economics, Yale University, revised Jul 1988.
- BERTINELLI, Luisito & STROBL, Eric, 2004.
"The Environmental Kuznets Curve semi-parametrically revisited,"
CORE Discussion Papers
2004051, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bertinelli, Luisito & Strobl, Eric, 2005. "The Environmental Kuznets Curve semi-parametrically revisited," Economics Letters, Elsevier, vol. 88(3), pages 350-357, September.
- Ruppert,David & Wand,M. P. & Carroll,R. J., 2003. "Semiparametric Regression," Cambridge Books, Cambridge University Press, number 9780521785167, September.
- Taylor, Alan M. & Taylor, Mark P, 2004.
"The Purchasing Power Parity Debate,"
CEPR Discussion Papers
4495, C.E.P.R. Discussion Papers.
- Vollebergh, Herman R.J. & Melenberg, Bertrand & Dijkgraaf, Elbert, 2009. "Identifying reduced-form relations with panel data: The case of pollution and income," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 27-42, July.
- Kijima, Masaaki & Nishide, Katsumasa & Ohyama, Atsuyuki, 2010. "Economic models for the environmental Kuznets curve: A survey," Journal of Economic Dynamics and Control, Elsevier, vol. 34(7), pages 1187-1201, July.
- Jalil, Abdul & Mahmud, Syed F., 2009. "Environment Kuznets curve for CO2 emissions: A cointegration analysis for China," Energy Policy, Elsevier, vol. 37(12), pages 5167-5172, December.
- He, Jie & Richard, Patrick, 2010.
"Environmental Kuznets curve for CO2 in Canada,"
Elsevier, vol. 69(5), pages 1083-1093, March.
- Fodha, Mouez & Zaghdoud, Oussama, 2010.
"Economic growth and pollutant emissions in Tunisia: An empirical analysis of the environmental Kuznets curve,"
Elsevier, vol. 38(2), pages 1150-1156, February.
- Mouez Fodha & Oussama Zaghdoud, 2010. "Economic growth and pollutant emissions in Tunisia: An empirical analysis of the environmental Kuznets curve," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00639496, HAL.
- Lofstedt, Ragnar, 2008. "Are renewables an alternative to nuclear power? An analysis of the Austria/Slovakia discussions," Energy Policy, Elsevier, vol. 36(6), pages 2226-2233, June.
- Martinez-Zarzoso, Inmaculada & Bengochea-Morancho, Aurelia, 2004. "Pooled mean group estimation of an environmental Kuznets curve for CO2," Economics Letters, Elsevier, vol. 82(1), pages 121-126, January.
- Ciprian M. Crainiceanu & David Ruppert, 2004. "Likelihood ratio tests in linear mixed models with one variance component," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 66(1), pages 165-185.
- repec:ebl:ecbull:v:14:y:2005:i:1:p:1-7 is not listed on IDEAS
- Kenneth Rogoff, 1996. "The Purchasing Power Parity Puzzle," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 647-668, June.
- Panayotou T, 1993. "Empirical tests and policy analysis of environmental degradation at different stages of economic development," ILO Working Papers 292778, International Labour Organization.
- Teräväinen, Tuula & Lehtonen, Markku & Martiskainen, Mari, 2011. "Climate change, energy security, and risk--debating nuclear new build in Finland, France and the UK," Energy Policy, Elsevier, vol. 39(6), pages 3434-3442, June.
- Magnus, Jan R. & Melenberg, Bertrand & Muris, Chris, 2011.
"Global Warming and Local Dimming: The Statistical Evidence,"
Journal of the American Statistical Association,
American Statistical Association, vol. 106(494), pages 452-464.
- Magnus, J.R. & Melenberg, B. & Muris, C.H.M., 2011. "Global Warming and Local Dimming : The Statistical Evidence," Discussion Paper 2011-004, Tilburg University, Center for Economic Research.
- Iwata, Hiroki & Okada, Keisuke & Samreth, Sovannroeun, 2009.
"Empirical Study on the Environmental Kuznets Curve for CO2 in France: The Role of Nuclear Energy,"
18997, University Library of Munich, Germany.
- Iwata, Hiroki & Okada, Keisuke & Samreth, Sovannroeun, 2010. "Empirical study on the environmental Kuznets curve for CO2 in France: The role of nuclear energy," Energy Policy, Elsevier, vol. 38(8), pages 4057-4063, August.
- Narayan, Paresh Kumar & Narayan, Seema, 2010. "Carbon dioxide emissions and economic growth: Panel data evidence from developing countries," Energy Policy, Elsevier, vol. 38(1), pages 661-666, January.
- Ruppert,David & Wand,M. P. & Carroll,R. J., 2003. "Semiparametric Regression," Cambridge Books, Cambridge University Press, number 9780521780506, September.
- Stern, David I. & Common, Michael S. & Barbier, Edward B., 1996. "Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development," World Development, Elsevier, vol. 24(7), pages 1151-1160, July.
- Foidart, F. & Oliver-Solá, J. & Gasol, C.M. & Gabarrell, X. & Rieradevall, J., 2010. "How important are current energy mix choices on future sustainability? Case study: Belgium and Spain--projections towards 2020-2030," Energy Policy, Elsevier, vol. 38(9), pages 5028-5037, September.
- Galeotti, Marzio & Lanza, Alessandro & Pauli, Francesco, 2006. "Reassessing the environmental Kuznets curve for CO2 emissions: A robustness exercise," Ecological Economics, Elsevier, vol. 57(1), pages 152-163, April.
- Stern, David I., 2010. "Between estimates of the emissions-income elasticity," Ecological Economics, Elsevier, vol. 69(11), pages 2173-2182, September.
- Sperling, Karl & Hvelplund, Frede & Mathiesen, Brian Vad, 2010. "Evaluation of wind power planning in Denmark – Towards an integrated perspective," Energy, Elsevier, vol. 35(12), pages 5443-5454.
When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:29:y:2012:i:4:p:1328-1337. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.