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A panel data heterogeneous Bayesian estimation of environmental Kuznets curves for CO2 emissions

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  • Antonio Musolesi
  • Massimiliano Mazzanti
  • Roberto Zoboli

Abstract

This article investigates the Environmental Kuznets Curves (EKC) for CO2 emissions in a panel of 109 countries during the period 1959 to 2001. The length of the series makes the application of a heterogeneous estimator suitable from an econometric point of view. The results, based on the hierarchical Bayes estimator, show that different EKC dynamics are associated with the different sub-samples of countries considered. On average, more industrialized countries show evidence of EKC in quadratic specifications, which nevertheless are probably evolving into an N-shape based on their cubic specification. Nevertheless, it is worth noting that the EU, and not the Umbrella Group led by US, has been driving currently observed EKC-like shapes. The latter is associated to monotonic income-CO2 dynamics. The EU shows a clear EKC shape. Evidence for less-developed countries consistently shows that CO2 emissions rise positively with income, though there are some signs of an EKC. Analyses of future performance, nevertheless, favour quadratic specifications, thus supporting EKC evidence for wealthier countries and non-EKC shapes for industrializing regions.

Suggested Citation

  • Antonio Musolesi & Massimiliano Mazzanti & Roberto Zoboli, 2010. "A panel data heterogeneous Bayesian estimation of environmental Kuznets curves for CO2 emissions," Applied Economics, Taylor & Francis Journals, vol. 42(18), pages 2275-2287.
  • Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2275-2287
    DOI: 10.1080/00036840701858034
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    References listed on IDEAS

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    1. Vollebergh, H.R.J. & Dijkgraaf, E. & Melenberg, B., 2005. "Environmental Kuznets Curves for CO2 : Heterogeneity Versus Homogeneity," Discussion Paper 2005-25, Tilburg University, Center for Economic Research.
    2. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
    3. 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.
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    Cited by:

    1. 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.
    2. Piaggio, Matías & Padilla, Emilio, 2012. "CO2 emissions and economic activity: Heterogeneity across countries and non-stationary series," Energy Policy, Elsevier, vol. 46(C), pages 370-381.
    3. repec:eee:rensus:v:81:y:2018:i:p2:p:3120-3130 is not listed on IDEAS
    4. Thomas Jobert & Fatih Karanfil & Anna Tykhonenko, 2014. "Estimating country-specific environmental Kuznets curves from panel data: a Bayesian shrinkage approach," Applied Economics, Taylor & Francis Journals, vol. 46(13), pages 1449-1464, May.
    5. Burke, Paul J., 2012. "Climbing the electricity ladder generates carbon Kuznets curve downturns," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(2), June.
    6. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Rifiuti generati, rifiuti in discarica ed efficacia delle politiche ambientali in Europa," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 103-135.
    7. Hübler, Michael, 2017. "The inequality-emissions nexus in the context of trade and development: A quantile regression approach," Ecological Economics, Elsevier, vol. 134(C), pages 174-185.
    8. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2017. "Carbon Dioxide Emissions and Economic Growth: An Assessment Based on Production and Consumption Emission Inventories," Ecological Economics, Elsevier, vol. 135(C), pages 269-279.
    9. Ernesto Aguayo-Téllez & José Martínez-Navarro, 2013. "Internal and international migration in Mexico: 1995--2000," Applied Economics, Taylor & Francis Journals, vol. 45(13), pages 1647-1661, May.
    10. Xiaosheng Li & Xia Yan & Qingxian An & Ke Chen & Zhen Shen, 2016. "The coordination between China’s economic growth and environmental emission from the Environmental Kuznets Curve viewpoint," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 83(1), pages 233-252, August.
    11. Guangyu Luo & Jia-Hsi Weng & Qianxue Zhang & Yu Hao, 2017. "A reexamination of the existence of environmental Kuznets curve for CO2 emissions: evidence from G20 countries," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 85(2), pages 1023-1042, January.
    12. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Are You SURE You Want to Waste Policy Chances? Waste Generation, Landfill Diversion and Environmental Policy Effectiveness in the EU15," Working Papers 2010.77, Fondazione Eni Enrico Mattei.
    13. Wang, Shaojian & Fang, Chuanglin & Wang, Yang, 2016. "Spatiotemporal variations of energy-related CO2 emissions in China and its influencing factors: An empirical analysis based on provincial panel data," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 505-515.
    14. Michaël Aklin, 2016. "Re-exploring the Trade and Environment Nexus Through the Diffusion of Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 663-682, August.

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