Further evidence of an Environmental Kuznets Curve in Spain
Using a long span of data in Spain, Esteve and Tamarit (2012b) reported evidence of a strong link between per capita income and per capita CO2. In this paper we extend their work, finding evidence of both non-linear cointegration and asymmetric adjustment using a novel approach due to Sephton (1994) and Sephton and Mann (2012). The results suggest that there is a long-run non-linear attractor drawing per capita income and CO2 levels together, with asymmetric adjustment.
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