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Modeling the Emissions-Income Relationship Using Long-Run Growth Rates

Author

Listed:
  • Zeba Anjum

    (Crawford School of Public Policy, The Australian National University)

  • Paul J. Burke

    (Crawford School of Public Policy, The Australian National University)

  • Reyer Gerlagh

    (Department of Economics, Tilburg University)

  • David I. Stern

    (Crawford School of Public Policy, The Australian National University)

Abstract

We adopt a new representation of the relationship between emissions and income using long-run growth rates. Our approach allows us to test multiple hypotheses about the drivers of per capita emissions in a single framework and avoid several of the econometric issues that have plagued previous studies. We find that for carbon dioxide emissions, scale, convergence, and resource endowment effects are statistically significant. For sulfur emissions, the scale and convergence effects are significant, there is a strong negative time effect, and non-English legal origin and higher population density are associated with more rapidly declining emissions. The environmental Kuznets effect is not statistically significant in our full sample for either carbon or sulfur.

Suggested Citation

  • Zeba Anjum & Paul J. Burke & Reyer Gerlagh & David I. Stern, 2014. "Modeling the Emissions-Income Relationship Using Long-Run Growth Rates," CCEP Working Papers 1403, Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:ccepwp:1403
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    More about this item

    Keywords

    Economic growth; decoupling; pollution; environmental Kuznets curve; convergence;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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