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The global EKCs

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  • Dong, Baomin
  • Wang, Fei
  • Guo, Yibei

Abstract

A substantial fraction of the production in the emerging economies satisfies the consumption in the developed countries. This causes the notorious carbon leakage problem where the embodied carbon emissions in exports are not counted in the traditional territorial production-based emission accounting (PBA). We calculate the consumption-based emissions using latest available Eora data in a multiregional input–output (MRIO) model and then perform fixed effect and random effect panel regressions, dynamic panel regression, and heterogeneous panel regressions using the PBA data and consumption-based accounting (CBA) obtained from the MRIO model. The results show that the inverted-U-shaped Environmental Kuznets Curve (EKC) does not exist for CBA. Indeed, results obtained in this paper show that the consumption-based EKC is linearly increasing.

Suggested Citation

  • Dong, Baomin & Wang, Fei & Guo, Yibei, 2016. "The global EKCs," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 210-221.
    • Handle: RePEc:eee:reveco:v:43:y:2016:i:c:p:210-221
    DOI: 10.1016/j.iref.2016.02.010
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    Cited by:

    1. Shahbaz, Muhammad & Sinha, Avik, 2019. "Environmental Kuznets Curve for CO2 emission: A survey of empirical literature," MPRA Paper 100257, University Library of Munich, Germany, revised 2019.
    2. Daniel Armeanu & Georgeta Vintilă & Jean Vasile Andrei & Ştefan Cristian Gherghina & Mihaela Cristina Drăgoi & Cristian Teodor, 2018. "Exploring the link between environmental pollution and economic growth in EU-28 countries: Is there an environmental Kuznets curve?," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-28, May.
    3. Muhammad Shahbaz & Avik Sinha, 2019. "Environmental Kuznets curve for CO2emissions: a literature survey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 106-168, January.
    4. YuSheng Kong & Rabnawaz Khan, 2019. "To examine environmental pollution by economic growth and their impact in an environmental Kuznets curve (EKC) among developed and developing countries," PLOS ONE, Public Library of Science, vol. 14(3), pages 1-23, March.
    5. Mrabet, Zouhair & Alsamara, Mouyad, 2017. "Testing the Kuznets Curve hypothesis for Qatar: A comparison between carbon dioxide and ecological footprint," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1366-1375.
    6. Weber, Shlomo & Wiesmeth, Hans, 2016. "Environmental awareness: The case of climate change," CEPR Discussion Papers 11525, C.E.P.R. Discussion Papers.
    7. Frodyma, Katarzyna & Papież, Monika & Śmiech, Sławomir, 2022. "Revisiting the Environmental Kuznets Curve in the European Union countries," Energy, Elsevier, vol. 241(C).
    8. Day, Creina, 2018. "Slowing resource extraction for export: A role for taxes in a small open economy," International Review of Economics & Finance, Elsevier, vol. 56(C), pages 408-420.
    9. Sinha, Avik & Shahbaz, Muhammad & Balsalobre, Daniel, 2018. "N-shaped Environmental Kuznets Curve: A Note on Validation and Falsification," MPRA Paper 99313, University Library of Munich, Germany, revised 16 Mar 2020.
    10. Zoundi, Zakaria, 2017. "CO2 emissions, renewable energy and the Environmental Kuznets Curve, a panel cointegration approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 1067-1075.

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    More about this item

    Keywords

    Environmental Kuznets Curve; Inverted U-shape; Leakage;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • F18 - International Economics - - Trade - - - Trade and Environment
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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