Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis
Despite the relationship between urbanization, energy use and CO2 emissions has been extensively studied in recent years, little attention has been paid to differences in development stages or income levels. Most previous studies have implicitly assumed that the impact of urbanization is homogenous for all countries. This assumption can be questionable as there are many characteristic differences among countries of different levels of affluence. This paper investigates empirically the effects of urbanization on energy use and CO2 emissions with consideration of the different development stages. Using the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) model and a balanced panel dataset of 99 countries over the period 1975-2005, the findings suggest that the impact of urbanization on energy use and emissions varies across the stages of development. Surprisingly, urbanization decreases energy use in the low-income group, while it increases energy use in the middle- and high-income groups. The impact of urbanization on emissions is positive for all the income groups, but it is more pronounced in the middle-income group than in the other income groups. These novel findings not only help advance the existing literature, but also can be of special interest to policy makers and urban planners.
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.:
- Newey, Whitney & West, Kenneth, 2014.
"A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix,"
Publishing House "SINERGIA PRESS", vol. 33(1), pages 125-132.
- Newey, Whitney K & West, Kenneth D, 1987. "A Simple, Positive Semi-definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix," Econometrica, Econometric Society, vol. 55(3), pages 703-708, May.
- Whitney K. Newey & Kenneth D. West, 1986. "A Simple, Positive Semi-Definite, Heteroskedasticity and AutocorrelationConsistent Covariance Matrix," NBER Technical Working Papers 0055, National Bureau of Economic Research, Inc.
- Inmaculada Martínez-Zarzoso & Aurelia Bengochea-Morancho & Rafael Morales-Lage, 2007. "The impact of population on CO 2 emissions: evidence from European countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(4), pages 497-512, December.
- Inmaculada Martínez-Zarzoso & Aurelia Bengochea-Morancho & Rafael Morales-Lage, 2006. "The Impact of Population on CO2 Emissions: Evidence From European Countries," Working Papers 2006.98, Fondazione Eni Enrico Mattei.
- Peter J. Marcotullio & Sarah Rothenberg & Miri Nakahara, 2003. "Globalization and urban environmental transitions: Comparison of New York's and Tokyo's experiences," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(3), pages 369-390, 08.
- Karen Ehrhardt-Martinez & Edward M. Crenshaw & J. Craig Jenkins, 2002. "Deforestation and the Environmental Kuznets Curve: A Cross-National Investigation of Intervening Mechanisms," Social Science Quarterly, Southwestern Social Science Association, vol. 83(1), pages 226-243.
- Jones, Donald W., 1991. "How urbanization affects energy-use in developing countries," Energy Policy, Elsevier, vol. 19(7), pages 621-630, September.
- Shi, Anqing, 2003. "The impact of population pressure on global carbon dioxide emissions, 1975-1996: evidence from pooled cross-country data," Ecological Economics, Elsevier, vol. 44(1), pages 29-42, February.
- Roberta Capello & Roberto Camagni, 2000. "Beyond Optimal City Size: An Evaluation of Alternative Urban Growth Patterns," Urban Studies, Urban Studies Journal Limited, vol. 37(9), pages 1479-1496, August.
- Liu, Yaobin, 2009. "Exploring the relationship between urbanization and energy consumption in China using ARDL (autoregressive distributed lag) and FDM (factor decomposition model)," Energy, Elsevier, vol. 34(11), pages 1846-1854.
- Elizabeth Burton, 2000. "The Compact City: Just or Just Compact? A Preliminary Analysis," Urban Studies, Urban Studies Journal Limited, vol. 37(11), pages 1969-2006, October.
- Choi, In, 2001. "Unit root tests for panel data," Journal of International Money and Finance, Elsevier, vol. 20(2), pages 249-272, April.
- Holtedahl, Pernille & Joutz, Frederick L., 2004. "Residential electricity demand in Taiwan," Energy Economics, Elsevier, vol. 26(2), pages 201-224, March.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
- Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
- Pasaran, M.H. & Im, K.S. & Shin, Y., 1995. "Testing for Unit Roots in Heterogeneous Panels," Cambridge Working Papers in Economics 9526, Faculty of Economics, University of Cambridge.
- Tom Doan, "undated". "IPSHIN: RATS procedure to implement Im, Pesaran and Shin panel unit root test," Statistical Software Components RTS00098, Boston College Department of Economics.
- Mishra, Vinod & Smyth, Russell & Sharma, Susan, 2009. "The energy-GDP nexus: Evidence from a panel of Pacific Island countries," Resource and Energy Economics, Elsevier, vol. 31(3), pages 210-220, August.
- Pachauri, Shonali, 2004. "An analysis of cross-sectional variations in total household energy requirements in India using micro survey data," Energy Policy, Elsevier, vol. 32(15), pages 1723-1735, October.
- World Bank, 2007. "World Development Indicators 2007," World Bank Publications, The World Bank, number 8150, July.
- York, Richard & Rosa, Eugene A. & Dietz, Thomas, 2003. "STIRPAT, IPAT and ImPACT: analytic tools for unpacking the driving forces of environmental impacts," Ecological Economics, Elsevier, vol. 46(3), pages 351-365, October.
- Pachauri, Shonali & Jiang, Leiwen, 2008. "The household energy transition in India and China," Energy Policy, Elsevier, vol. 36(11), pages 4022-4035, November.
- Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
- Tom Doan, "undated". "LEVINLIN: RATS procedure to perform Levin-Lin-Chu test for unit roots in panel data," Statistical Software Components RTS00242, Boston College Department of Economics.
- Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-1294, September.
- Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-652, Special I.
- Alam, Shaista & Fatima, Ambreen & Butt, Muhammad S., 2007. "Sustainable development in Pakistan in the context of energy consumption demand and environmental degradation," Journal of Asian Economics, Elsevier, vol. 18(5), pages 825-837, October.
- Matthew A. Cole & Eric Neumayer, 2003. "Examining the Impact of Demographic Factors On Air Pollution," Labor and Demography 0312005, EconWPA, revised 13 May 2004. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:70:y:2010:i:2:p:434-444. 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: (Dana Niculescu)
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.