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A Test for Parameter Homogeneity in CO 2 Panel EKC Estimations

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  • Elbert Dijkgraaf
  • Herman Vollebergh

    ()

Abstract

This paper casts doubt on empirical results based on panel estimations of an “inverted-U” relationship between per capita GDP and pollution. Using a new dataset for OECD countries on carbon dioxide emissions for the period 1960–1997, we find that the crucial assumption of homogeneity across countries is problematic. Decisively rejected are model specifications that feature even weaker homogeneity assumptions than are commonly used. Furthermore, our results challenge the existence of an overall Environmental Kuznets Curve for carbon dioxide emissions. Copyright Springer 2005

Suggested Citation

  • Elbert Dijkgraaf & Herman Vollebergh, 2005. "A Test for Parameter Homogeneity in CO 2 Panel EKC Estimations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(2), pages 229-239, October.
  • Handle: RePEc:kap:enreec:v:32:y:2005:i:2:p:229-239
    DOI: 10.1007/s10640-005-2776-0
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    References listed on IDEAS

    as
    1. William T. Harbaugh & Arik Levinson & David Molloy Wilson, 2002. "Reexamining The Empirical Evidence For An Environmental Kuznets Curve," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 541-551, August.
    2. List, John A. & Gallet, Craig A., 1999. "The environmental Kuznets curve: does one size fit all?," Ecological Economics, Elsevier, vol. 31(3), pages 409-423, December.
    3. Elbert Dijkgraaf & Herman Vollebergh, 2004. "A Note on Testing for Environmental Kuznets Curves with Panel Data," Others 0409001, EconWPA.
    4. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 353-377.
    5. Shafik, Nemat, 1994. "Economic Development and Environmental Quality: An Econometric Analysis," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 757-773, Supplemen.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    environmental Kuznets curves; heterogeneity; panel data; C33; O50; Q40;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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