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The relationship between economic growth and environmental quality: the contributions of economic structure and agricultural policies

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  • Carillo, Felicetta
  • Maietta, Ornella Wanda

Abstract

Objectives of this paper is to verify whether the relationship between the level of per capita income and the environment quality, for the Italian regions, follows the prescription of an Environmental Kuznets Curve (EKC), taking into account the contribution of agriculture and rural areas. The Arellano-Bond two-step dynamic panel data GMM estimator has been applied to a data set of the 20 Italian administrative regions referred to the 2000-‘06 years. The quality of environment is represented by the level of per capita CO2 emissions from the whole economy and the level of per capita CO2 emissions from agriculture. The regression results show that i) the EKC prescription holds for the Italian regions, ii) the more agricultural regions are found on the rising section of the curve; iii) a greater intensity of expenditure under the RDP regional agro-environmental and forestry measures is positively associated to a more degraded environment.

Suggested Citation

  • Carillo, Felicetta & Maietta, Ornella Wanda, 2012. "The relationship between economic growth and environmental quality: the contributions of economic structure and agricultural policies," 126th Seminar, June 27-29, 2012, Capri, Italy 128206, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa126:128206
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    File URL: http://purl.umn.edu/128206
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    References listed on IDEAS

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    1. Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May.
    2. Everett, Tim & Ishwaran, Mallika & Ansaloni, Gian Paolo & Rubin, Alex, 2010. "Economic growth and the environment," MPRA Paper 23585, University Library of Munich, Germany.
    3. Stern, David I. & Common, Michael S. & Barbier, Edward B., 1996. "Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development," World Development, Elsevier, vol. 24(7), pages 1151-1160, July.
    4. Eleonora Cavallaro, 2002. "Crescita, ambiente e commercio internazionale in un modello con innovazioni tecnologiche," Working Papers 48, University of Rome La Sapienza, Department of Public Economics.
    5. 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.
    6. Panayotou, Theodore, 1997. "Demystifying the environmental Kuznets curve: turning a black box into a policy tool," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 465-484, November.
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    Cited by:

    1. Viaggi, Davide, 0. "Research and innovation in agriculture: beyond productivity?," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 3.

    More about this item

    Keywords

    Environmental Kuznets Curve; Agriculture; Agricultural Policy; Regional panel data; Community/Rural/Urban Development; Environmental Economics and Policy; Q01; Q15; R11;

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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