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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 Economics & Policy, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:ccepwp:1403
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    References listed on IDEAS

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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Annual Review 2015
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2015-12-27 03:48:00
    2. Global Energy Use: Decoupling or Convergence?
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2014-12-17 04:46:00
    3. My Year in Review 2014
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2014-12-30 06:58:00
    4. Global Energy Use: Decoupling or Convergence Accepted to be Published in Energy Economics
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2015-08-27 07:55:00
    5. The Environmental Kuznets Curve after 25 Years
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2016-01-04 16:20:00
    6. Long-run Estimates of Interfuel and Interfactor Elasticities
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2016-01-20 16:11:00
    7. Dynamics of the Environmental Kuznets Curve
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2016-07-21 15:08:00
    8. Annual Review 2016
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2016-12-26 17:08:00
    9. Annual Review 2017
      by noreply@blogger.com (David Stern) in Stochastic Trend on 2017-12-28 02:26:00

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    Cited by:

    1. Dobes Leo & Jotzo Frank & Stern David I., 2014. "The Economics of Global Climate Change: A Historical Literature Review," Review of Economics, De Gruyter, vol. 65(3), pages 281-320, December.
    2. repec:spr:climat:v:142:y:2017:i:3:d:10.1007_s10584-017-1955-7 is not listed on IDEAS
    3. Sanchez, Luis F. & Stern, David I., 2016. "Drivers of industrial and non-industrial greenhouse gas emissions," Ecological Economics, Elsevier, vol. 124(C), pages 17-24.
    4. David I. Stern & Jeremy Dijk, 2017. "Economic growth and global particulate pollution concentrations," Climatic Change, Springer, vol. 142(3), pages 391-406, June.
    5. David I. Stern & Donglan Zha, 2016. "Economic growth and particulate pollution concentrations in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(3), pages 327-338, July.
    6. Csereklyei, Zsuzsanna & Stern, David I., 2015. "Global energy use: Decoupling or convergence?," Energy Economics, Elsevier, vol. 51(C), pages 633-641.
    7. Cohen, Gail & Jalles, Joao Tovar & Loungani, Prakash & Marto, Ricardo, 2018. "The long-run decoupling of emissions and output: Evidence from the largest emitters," Energy Policy, Elsevier, vol. 118(C), pages 58-68.
    8. David I. Stern, 2014. "The Environmental Kuznets Curve: A Primer," CCEP Working Papers 1404, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
    9. Burke, Paul J. & Csereklyei, Zsuzsanna, 2016. "Understanding the energy-GDP elasticity: A sectoral approach," Energy Economics, Elsevier, vol. 58(C), pages 199-210.
    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. Fernández-Amador, Octavio & Oberdabernig, Doris & Tomberger, Patrick, 2017. "Testing for Convergence in Carbon Dioxide Emissions using a Bayesian Robust Structural Model," Papers 1101, World Trade Institute.
    12. Pablo-Romero, M.P. & Cruz, L. & Barata, E., 2017. "Testing the transport energy-environmental Kuznets curve hypothesis in the EU27 countries," Energy Economics, Elsevier, vol. 62(C), pages 257-269.
    13. repec:eee:energy:v:125:y:2017:i:c:p:44-54 is not listed on IDEAS
    14. David I. Stern, 2017. "The environmental Kuznets curve after 25 years," Journal of Bioeconomics, Springer, vol. 19(1), pages 7-28, April.
    15. Paul J. Burke & Md Shahiduzzaman & David I. Stern, 2015. "Carbon dioxide emissions in the short run: The rate and sources of economic growth matter," CAMA Working Papers 2015-12, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    16. Pascalau, Razvan & Qirjo, Dhimitri, 2017. "TTIP and the Environmental Kuznets Curve," MPRA Paper 80192, University Library of Munich, Germany.

    More about this item

    Keywords

    Economic growth; decoupling; pollution; environmental Kuznets curve; convergence;

    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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