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Empirical estimates of the methane–income elasticity

Author

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  • Fernández-Amador, Octavio
  • Francois, Joseph F.
  • Oberdabernig, Doris A.
  • Tomberger, Patrick

Abstract

We estimate the income-elasticity of methane emissions per capita derived from production, final production, and consumption in a global sample of countries for 1997–2011. We find relative decoupling between emissions and income, and evidence for a piecewise-linear relationship. The relation between economic growth and emissions improves as countries reach high levels of income, although the magnitude of the improvement is small. This points to very minor methane-efficiency gains from economic development.

Suggested Citation

  • Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2018. "Empirical estimates of the methane–income elasticity," Economics Letters, Elsevier, vol. 171(C), pages 137-139.
  • Handle: RePEc:eee:ecolet:v:171:y:2018:i:c:p:137-139
    DOI: 10.1016/j.econlet.2018.07.012
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    References listed on IDEAS

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    1. Fernández-Amador, Octavio & Francois, Joseph & Oberdabernig, Doris & Tomberger, Patrick, 2018. "The methane footprint of nations: Evidence from global panel data," Papers 1102, World Trade Institute.
    2. Caner, Mehmet & Hansen, Bruce E., 2004. "Instrumental Variable Estimation Of A Threshold Model," Econometric Theory, Cambridge University Press, vol. 20(5), pages 813-843, October.
    3. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2017. "Carbon Dioxide Emissions and Economic Growth: An Assessment Based on Production and Consumption Emission Inventories," Ecological Economics, Elsevier, vol. 135(C), pages 269-279.
    4. Rahel Aichele & Gabriel Felbermayr, 2015. "Kyoto and Carbon Leakage: An Empirical Analysis of the Carbon Content of Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 97(1), pages 104-115, March.
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    11. Jorgenson, Andrew & Birkholz, Ryan, 2010. "Assessing the causes of anthropogenic methane emissions in comparative perspective, 1990-2005," Ecological Economics, Elsevier, vol. 69(12), pages 2634-2643, October.
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    1. repec:cpr:ceprdp:14081 is not listed on IDEAS
    2. Octavio Fernández-Amador & Joseph F. Francois & Doris A. Oberdabernig & Patrick Tomberger, 2020. "Economic growth, sectoral structures, and environmental methane footprints," Applied Economics, Taylor & Francis Journals, vol. 52(13), pages 1460-1475, March.

    More about this item

    Keywords

    Economic growth; Methane emissions; Production-based inventories; Methane footprint; Income-elasticity; Threshold estimation;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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