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Which industry is greener? An empirical study of nine industries in OECD countries

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  • Fujii, Hidemichi
  • Managi, Shunsuke

Abstract

This study analyzed the relationship between the CO2 emissions of different industries and economic growth in OECD countries from 1970 to 2005. We tested an environmental Kuznets curve (EKC) hypothesis and found that total CO2 emissions from nine industries show an N-shaped trend instead of an inverted U or monotonic increasing trend with increasing income. The EKC hypothesis for sector-level CO2 emissions was supported in the (1) paper, pulp, and printing industry; (2) wood and wood products industry; and (3) construction industry. We also found that emissions from coal and oil increase with economic growth in the steel and construction industries. In addition, the non-metallic minerals, machinery, and transport equipment industries tend to have increased emissions from oil and electricity with economic growth. Finally, the EKC turning point and the relationship between GDP per capita and sectoral CO2 emissions differ among industries according to the fuel type used. Therefore, environmental policies for CO2 reduction must consider these differences in industrial characteristics.

Suggested Citation

  • Fujii, Hidemichi & Managi, Shunsuke, 2013. "Which industry is greener? An empirical study of nine industries in OECD countries," Energy Policy, Elsevier, vol. 57(C), pages 381-388.
  • Handle: RePEc:eee:enepol:v:57:y:2013:i:c:p:381-388
    DOI: 10.1016/j.enpol.2013.02.011
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    Cited by:

    1. Giedrė Lapinskienė & Kęstutis Peleckis & Neringa Slavinskaitė, 2017. "Energy consumption, economic growth and greenhouse gas emissions in the European Union countries," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 18(6), pages 1082-1097, November.
    2. Marianna Gilli & Giovanni Marin & Massimiliano Mazzanti & Francesco Nicolli, 2017. "Sustainable development and industrial development: manufacturing environmental performance, technology and consumption/production perspectives," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 6(2), pages 183-203, April.
    3. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Optimal production resource reallocation for CO2 emissions reduction in manufacturing sectors," MPRA Paper 64703, University Library of Munich, Germany.
    4. Wang, Yuan & Zhang, Chen & Lu, Aitong & Li, Li & He, Yanmin & ToJo, Junji & Zhu, Xiaodong, 2017. "A disaggregated analysis of the environmental Kuznets curve for industrial CO2 emissions in China," Applied Energy, Elsevier, vol. 190(C), pages 172-180.
    5. Andrew Chapman & Hidemichi Fujii & Shunsuke Managi, 2018. "Key Drivers for Cooperation toward Sustainable Development and the Management of CO 2 Emissions: Comparative Analysis of Six Northeast Asian Countries," Sustainability, MDPI, Open Access Journal, vol. 10(1), pages 1-12, January.
    6. Song, Malin & Li, Hui, 2019. "Estimating the efficiency of a sustainable Chinese tourism industry using bootstrap technology rectification," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 45-54.
    7. Kander, Astrid & Warde, Paul & Teives Henriques, Sofia & Nielsen, Hana & Kulionis, Viktoras & Hagen, Sven, 2017. "International Trade and Energy Intensity During European Industrialization, 1870–1935," Ecological Economics, Elsevier, vol. 139(C), pages 33-44.
    8. Taha Zaghdoudi & Samir Maktouf, 2017. "Threshold effect in the relationship between environmental taxes and CO2 emissions: A PSTR specification," Economics Bulletin, AccessEcon, vol. 37(3), pages 2086-2094.
    9. Moutinho, Victor & Varum, Celeste & Madaleno, Mara, 2017. "How economic growth affects emissions? An investigation of the environmental Kuznets curve in Portuguese and Spanish economic activity sectors," Energy Policy, Elsevier, vol. 106(C), pages 326-344.
    10. Pablo-Romero, María del P. & Sánchez-Braza, Antonio, 2017. "Residential energy environmental Kuznets curve in the EU-28," Energy, Elsevier, vol. 125(C), pages 44-54.
    11. Parlow, Anton & von Hauff, Michael, 2014. "CO2-Emissions and Economic Growth - A bounds-testing cointegration analysis for German industries," MPRA Paper 55716, University Library of Munich, Germany.
    12. Pablo-Romero, M.P. & Cruz, L. & Barata, E., 2017. "Testing the transport energy-environmental Kuznets curve hypothesis in the EU27 countries," Energy Economics, Elsevier, vol. 62(C), pages 257-269.
    13. Romualdas Ginevičius Author-Email: romualdas.ginevicius@vgtu.lt Author-Workplace-Name: Vilnius Gediminas Technical University, Lithuania Author-Name: Giedrė Lapinskienė Author-Email: giedre.lapinsk, 2017. "The Evolution of the Environmental Kuznets Curve Concept: The Review of the Research," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 64(1), pages 93-112, December.
    14. Sakamoto, Tomoyuki & Managi, Shunsuke, 2015. "Energy pricing impact on domestic economy under recent climate action," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 150-162.
    15. Hidemichi Fujii & Masayuki Sato & Shunsuke Managi, 2017. "Decomposition Analysis of Forest Ecosystem Services Values," Sustainability, MDPI, Open Access Journal, vol. 9(5), pages 1-14, April.
    16. Halkos, George E. & Papageorgiou, George J., 2018. "Pollution, environmental taxes and public debt: A game theory setup," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 111-120.
    17. Giedrė Lapinskienė & Kęstutis Peleckis & Marijus Radavičius, 2015. "Economic development and greenhouse gas emissions in the European Union countries," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 16(6), pages 1109-1123, December.
    18. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Economic development and multiple air pollutant emissions from the industrial sector," MPRA Paper 67027, University Library of Munich, Germany.
    19. Gaigalis, Vygandas & Skema, Romualdas, 2015. "Analysis of the fuel and energy transition in Lithuanian industry and its sustainable development in 2005–2013 in compliance with the EU policy and strategy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 265-279.

    More about this item

    Keywords

    Environmental Kuznets curve; CO2 emissions; Industrial sector;

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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