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The environmental Kuznets curve : evidence from time series data for Germany

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Abstract

In recent years, extensive literature on the Environmental Kuznets Curve lead- ing to optimistic policy conclusions has attracted great attention. However, the underlying cross-section estimations are not very reliable. Accordingly, this contribution uses time series data for a single country with dependable data quality : Germany. The results of the traditional reduced-form specification do not support the EKC hypothesis. However, with a specification in the tradi- tion of error correction models, which are more appropriate in the presence of non-stationary time series, it is found that the typical EKC pattern can be confirmed.

Suggested Citation

  • Hannes Egli, 2004. "The environmental Kuznets curve : evidence from time series data for Germany," CER-ETH Economics working paper series 03/28, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    • Handle: RePEc:eth:wpswif:03-28
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    1. MacKinnon, James G, 1994. "Approximate Asymptotic Distribution Functions for Unit-Root and Cointegration Tests," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(2), pages 167-176, April.
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    1. Pata, Ugur Korkut & Kartal, Mustafa Tevfik & Erdogan, Sinan & Sarkodie, Samuel Asumadu, 2023. "The role of renewable and nuclear energy R&D expenditures and income on environmental quality in Germany: Scrutinizing the EKC and LCC hypotheses with smooth structural changes," Applied Energy, Elsevier, vol. 342(C).
    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. Marzio Galeotti, 2007. "Economic Growth And The Quality Of The Environment: Taking Stock," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 9(4), pages 427-454, November.
    4. Parlow, Anton & von Hauff, Michael, 2014. "CO2-Emissions and Economic Growth - A bounds-testing cointegration analysis for German industries," MPRA Paper 55716, University Library of Munich, Germany.
    5. Gang Liu & Terje Skjerpen & Kjetil Telle, 2009. "Unit roots, polynomial transformations and the environmental Kuznets curve," Applied Economics Letters, Taylor & Francis Journals, vol. 16(3), pages 285-288.
    6. Rabia Ece Omay, 2013. "The Relationship between Environment and Income:Regression Spline Approac," International Journal of Energy Economics and Policy, Econjournals, vol. 3(Special), pages 52-61.
    7. Shahbaz, Muhammad & Khraief, Naceur & Uddin, Gazi Salah & Ozturk, Ilhan, 2014. "Environmental Kuznets curve in an open economy: A bounds testing and causality analysis for Tunisia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 325-336.
    8. Fodha, Mouez & Zaghdoud, Oussama, 2010. "Economic growth and pollutant emissions in Tunisia: An empirical analysis of the environmental Kuznets curve," Energy Policy, Elsevier, vol. 38(2), pages 1150-1156, February.
    9. Giovanis, Eleftherios, 2013. "Environmental Kuznets curve: Evidence from the British Household Panel Survey," Economic Modelling, Elsevier, vol. 30(C), pages 602-611.
    10. Freire-González, Jaume & Padilla Rosa, Emilio & Raymond, Josep Ll., 2024. "World economies’ progress in decoupling from CO₂ emissions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(1).
    11. Galeotti, Marzio & Manera, Matteo & Lanza, Alessandro, 2006. "On the Robustness of Robustness Checks of the Environmental Kuznets Curve," Climate Change Modelling and Policy Working Papers 12045, Fondazione Eni Enrico Mattei (FEEM).
    12. Cunha, Barbara & Mani, Muthukumara, 2011. "DR-CAFTA and the environment," Policy Research Working Paper Series 5826, The World Bank.
    13. Ugur Korkut Pata & Emrah Sofuoglu & Zahoor Ahmed & Oktay Kizilkaya, 2024. "Eco‐innovation and environmental sustainability in Germany: An empirical approach with smooth structural shifts," Natural Resources Forum, Blackwell Publishing, vol. 48(1), pages 154-170, February.
    14. Saboori, Behnaz & Sulaiman, Jamalludin & Mohd, Saidatulakmal, 2012. "Economic growth and CO2 emissions in Malaysia: A cointegration analysis of the Environmental Kuznets Curve," Energy Policy, Elsevier, vol. 51(C), pages 184-191.
    15. Oktay KIZILKAYA, 2017. "The Impact of Economic Growth and Foreign Direct Investment on CO2 Emissions: The Case of Turkey," Turkish Economic Review, KSP Journals, vol. 4(1), pages 106-118, March.
    16. Kubatko Oleksandr & Kubatko Oleksandra, 2015. "The Influence of Environmental Factors on Human Health: Economic Estimations for Ukraine," EERC Working Paper Series 15/01e, EERC Research Network, Russia and CIS.
    17. Caillavet, F. & Darmon, N. & Fadhuile, A. & Nichele, V., 2015. "Who emits most? The environmental impact of food purchases of French households," 2015 Conference, August 9-14, 2015, Milan, Italy 211382, International Association of Agricultural Economists.

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    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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