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The EKC for SO2: Does firm size matter?

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  • Merlevede, Bruno
  • Verbeke, Tom
  • De Clercq, Marc

Abstract

The environmental Kuznets curve hypothesis (EKC) predicts and inverse U-shaped relationship between environmental pollution and per capita income. The literature with respect to the EKC is vast but far from conclusive. This paper adds firm size to the standard EKC reduced form regression and analyses whether firm size matters once income and composition are controlled for. Results suggest that countries whose average firm is larger are initially associated with higher levels of environmental damage. However, as economies develop, large firm countries find it easier to adopt environmental legislation. Environmental damage starts to decrease at lower levels of income and the decrease is much larger compared to countries whose firms are on average small.
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  • Merlevede, Bruno & Verbeke, Tom & De Clercq, Marc, 2006. "The EKC for SO2: Does firm size matter?," Ecological Economics, Elsevier, vol. 59(4), pages 451-461, October.
    • Handle: RePEc:eee:ecolec:v:59:y:2006:i:4:p:451-461
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    Cited by:

    1. Sedigh, Golnaz, 2008. "Do environmental regulations reduce greenhouse gas emissions? A study on Canadian industries," MPRA Paper 10003, University Library of Munich, Germany.
    2. Larivière, Jean-Michel & He, Jie, 2012. "L’impact de la taille des firmes industrielles sur la courbe de Kuznets environnementale : le cas des émissions de SO2 en Chine," L'Actualité Economique, Société Canadienne de Science Economique, vol. 88(1), pages 5-36, mars.
    3. Paudel, Krishna P. & Lin, C.-Y. Cynthia & Pandit, Mahesh, 2014. "Environmental Kuznets Curve for Water Quality Parameters at Global Level," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162618, Southern Agricultural Economics Association.
    4. Min Jiang & Euijune Kim & Youngjin Woo, 2020. "The Relationship between Economic Growth and Air Pollution—A Regional Comparison between China and South Korea," IJERPH, MDPI, vol. 17(8), pages 1-20, April.
    5. Lei Jin & Keran Duan & Chunming Shi & Xianwei Ju, 2017. "The Impact of Technological Progress in the Energy Sector on Carbon Emissions: An Empirical Analysis from China," IJERPH, MDPI, vol. 14(12), pages 1-14, December.
    6. Brajer, Victor & Mead, Robert W. & Xiao, Feng, 2008. "Health benefits of tunneling through the Chinese environmental Kuznets curve (EKC)," Ecological Economics, Elsevier, vol. 66(4), pages 674-686, July.
    7. Gallaway, Terrel & Olsen, Reed N. & Mitchell, David M., 2010. "The economics of global light pollution," Ecological Economics, Elsevier, vol. 69(3), pages 658-665, January.
    8. Arkadiusz Świadek & Jadwiga Gorączkowska & Karolina Godzisz, 2021. "Conditions Driving Low-Carbon Innovation in a Medium-Sized European Country That Is Catching Up–Case Study of Poland," Energies, MDPI, vol. 14(7), pages 1-17, April.
    9. Reed N. Olsen & Terrel Gallaway & David Mitchell, 2014. "Modelling US light pollution," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 57(6), pages 883-903, June.
    10. Brajer, Victor & Mead, Robert W. & Xiao, Feng, 2011. "Searching for an Environmental Kuznets Curve in China's air pollution," China Economic Review, Elsevier, vol. 22(3), pages 383-397, September.
    11. Sabuj Kumar Mandal & Devleena Chakravarty, 2017. "Role of energy in estimating turning point of Environmental Kuznets Curve: an econometric analysis of the existing studies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(2), pages 387-401, October.
    12. Arkadiusz Świadek & Jadwiga Gorączkowska & Karolina Godzisz, 2022. "Conditions Driving Eco-Innovation in a Catching-Up Country—ICT vs. Industry in Poland," Energies, MDPI, vol. 15(15), pages 1-21, July.
    13. He, Jie & Wang, Hua, 2012. "Economic structure, development policy and environmental quality: An empirical analysis of environmental Kuznets curves with Chinese municipal data," Ecological Economics, Elsevier, vol. 76(C), pages 49-59.
    14. Liu, Yong, 2014. "Barriers to the adoption of low carbon production: A multiple-case study of Chinese industrial firms," Energy Policy, Elsevier, vol. 67(C), pages 412-421.
    15. Ahmadova, Gozal & Delgado-Márquez, Blanca L. & Pedauga, Luis E. & Leyva-de la Hiz, Dante I., 2022. "Too good to be true: The inverted U-shaped relationship between home-country digitalization and environmental performance," Ecological Economics, Elsevier, vol. 196(C).
    16. Justin Tevie & Kristine M. Grimsrud & Robert P. Berrens, 2011. "Testing the Environmental Kuznets Curve Hypothesis for Biodiversity Risk in the US: A Spatial Econometric Approach," Sustainability, MDPI, vol. 3(11), pages 1-18, November.
    17. Puyang Sun & Yan Yuan, 2015. "Industrial Agglomeration and Environmental Degradation: Empirical Evidence in Chinese Cities," Pacific Economic Review, Wiley Blackwell, vol. 20(4), pages 544-568, October.
    18. Yong Liu, 2018. "Exploring the Relationship between External Positive–Negative Pressures and the Carbon Management Behaviour of Industrial Firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(4), pages 628-641, July.
    19. Caviglia-Harris, Jill L. & Chambers, Dustin & Kahn, James R., 2009. "Taking the "U" out of Kuznets: A comprehensive analysis of the EKC and environmental degradation," Ecological Economics, Elsevier, vol. 68(4), pages 1149-1159, February.

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