The Environmental Kuznets Curve: Real Progress or Misspecified Models?
We explore the importance of modeling strategies when estimating the emissions-income relationship. Using U.S. state-level panel data on nitrogen oxide and sulfur dioxide emissions, we estimate several environmental Kuznets curves using the standard parametric framework as well as a more flexible semiparametric alternative. Formal statistical comparisons of the results overwhelmingly reject the parametric approach. Moreover, the differences, particularly for sulfur dioxide, are economically significant.
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|Date of creation:||2002|
|Contact details of provider:|| Postal: Guelph, Ontario, N1G 2W1|
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