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Social capital and CO2 emission—output relations: A panel analysis

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  • Ibrahim, Mansor H.
  • Law, Siong Hook

Abstract

The present paper examines the mitigating effect of social capital on the environmental Kuznets curve (EKC) for CO2 emissions using a panel data of 69 developed and developing countries. Adopting generalised method of moments (GMM) estimators, the paper finds evidence substantiating the presence of EKC. Moreover, the evidence suggests that the pollution costs of economic development tend to be lower in countries with higher social capital reservoir. Surprisingly, there is also evidence to indicate that the income threshold point beyond which CO2 emissions decline is higher in countries with higher social capital. These results are robust to addition of alternative controlled variables in the EKC specification. Thus, in addition to policy focus on investments in environmentally friendly technology and on the use of renewable energy, investments in social capital can also mitigate the pollution effects of economic progress.

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  • Ibrahim, Mansor H. & Law, Siong Hook, 2014. "Social capital and CO2 emission—output relations: A panel analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 528-534.
  • Handle: RePEc:eee:rensus:v:29:y:2014:i:c:p:528-534 DOI: 10.1016/j.rser.2013.08.076
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    5. Das, Sreejon & Wan Daud, W.M.A., 2014. "Photocatalytic CO2 transformation into fuel: A review on advances in photocatalyst and photoreactor," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 765-805.
    6. Halkos, George, 2014. "The Economics of Climate Change Policy: Critical review and future policy directions," MPRA Paper 56841, University Library of Munich, Germany.
    7. Al Mamun, Md. & Sohag, Kazi & Hannan Mia, Md. Abdul & Salah Uddin, Gazi & Ozturk, Ilhan, 2014. "Regional differences in the dynamic linkage between CO2 emissions, sectoral output and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 1-11.
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    9. Ng, Adam & Ibrahim, Mansor H. & Mirakhor, Abbas, 2016. "Does trust contribute to stock market development?," Economic Modelling, Elsevier, vol. 52(PA), pages 239-250.
    10. Robalino-López, Andrés & Mena-Nieto, Ángel & García-Ramos, José-Enrique & Golpe, Antonio A., 2015. "Studying the relationship between economic growth, CO2 emissions, and the environmental Kuznets curve in Venezuela (1980–2025)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 602-614.
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    Keywords

    Environmental Kuznets curve; CO2 emissions; Social capital; GMM;

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