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

Listed author(s):
  • 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)

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.

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File URL: https://ccep.crawford.anu.edu.au/sites/default/files/publication/ccep_crawford_anu_edu_au/2014-08/ccep1403.pdf
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Paper provided by Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University in its series CCEP Working Papers with number 1403.

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Date of creation: May 2014
Handle: RePEc:een:ccepwp:1403
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