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Energy consumption, income and CO2 emissions in Latin America

  • Claudia S. Gómez-López

    ()

    (Department of Economics and Finance, Universidad de Guanajuato)

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    I describe and compare the environment policies of European Union and of 12 Latin Americans economies. For this, I use common statistical methods, such as non-parametric tests, convergence analysis (Beta and Sigma) and panel data, in order to verify the hypothesis that emissions and energy use in Latin America has been increasing since the mid-20th century. The statistical tests used confirm the proposed hypothesis. I also rely upon the Environmental Kuznets Curve- whereby economies that are at the growth stage are more focused on achieving the latter than they are on environmental concerns and those which have already achieved growth focus more on environmental concerns-to take an alternative approach by introducing the role of economic growth in the evolution of energy consumption and emissions. This chapter reaches the conclusion that energy consumption and pollutant emissions in LA, in per capita terms, are converging. This suggests that the initial levels of the variables help to explain why some countries have increased emissions (in this case, energy consumption) to a greater extent than other economies in the region. Evidence of convergence is also found, as well as a monotonic relationship between the level of pollution and the level of development (consistent with the Environmental Kuznets Curve).

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    File URL: http://economia.ugto.org/WorkingPapers/EC200901.pdf
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    Paper provided by Universidad de Guanajuato, Department of Economics and Finance in its series Department of Economics and Finance Working Papers with number EC200901.

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    Length: 31 pages
    Date of creation: Jun 2009
    Date of revision:
    Handle: RePEc:gua:wpaper:ec200901
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    UCEA-Campus Marfil, Fracc. I, El Establo, Guanajuato GTO 36250

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    1. Sala-i-Martin, Xavier, 1994. "Cross-sectional regressions and the empirics of economic growth," European Economic Review, Elsevier, vol. 38(3-4), pages 739-747, April.
    2. Stavins, Robert, 2001. "Experience with Market-Based Environmental Policy Instruments," Discussion Papers dp-01-58, Resources For the Future.
    3. Stavins, Robert, 2001. "Lessons From the American Experiment With Market-Based Environmental Policies," Discussion Papers dp-01-53, Resources For the Future.
    4. Douglas Holtz-Eakin & Thomas M. Selden, 1992. "Stoking the Fires? Co2 Emissions and Economic Growth," NBER Working Papers 4248, National Bureau of Economic Research, Inc.
    5. Gene M. Grossman & Alan B. Krueger, 1994. "Economic Growth and the Environment," NBER Working Papers 4634, National Bureau of Economic Research, Inc.
    6. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-36, July.
    7. Theodore Panayotou, 2000. "Economic Growth and the Environment," CID Working Papers 56, Center for International Development at Harvard University.
    8. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
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