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Estimating country-specific environmental Kuznets curves from panel data: a Bayesian shrinkage approach

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  • Thomas Jobert
  • Fatih Karanfil

    () (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Anna Tykhonenko

Abstract

Designing an efficient global climate policy turns out to be a difficult yet crucial task since there are noteworthy cross-country differences in energy and carbon intensities. In this article, the environmental Kuznets curve (EKC) hypothesis is tested for carbon dioxide (CO2) emissions, and as a modelling technique, the iterative Bayesian shrinkage procedure is employed to handle the cross-country differences. The results suggest that first the EKC hypothesis is rejected for 47 out of the 51 countries considered when the heterogeneity in countries' energy efficiencies and cross-country differences in the CO2 emissions trajectories are accounted for; second, a classification of the results with respect to the development levels of the countries concerned reveals that the emergence of an overall inverted U-shaped curve is due to the fact that in high-income countries increase in gross domestic product (GDP) decreases emissions, while in low-income countries emissions and GDP are positively correlated.
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  • Thomas Jobert & Fatih Karanfil & Anna Tykhonenko, 2014. "Estimating country-specific environmental Kuznets curves from panel data: a Bayesian shrinkage approach," Post-Print hal-01385924, HAL.
  • Handle: RePEc:hal:journl:hal-01385924
    Note: View the original document on HAL open archive server: https://hal-univ-paris10.archives-ouvertes.fr/hal-01385924
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    Cited by:

    1. Karanfil, Fatih & Li, Yuanjing, 2015. "Electricity consumption and economic growth: Exploring panel-specific differences," Energy Policy, Elsevier, vol. 82(C), pages 264-277.
    2. Lisa Gianmoena & Vicente Rios, 2018. "The Determinants of CO2 Emissions Differentials with Cross-Country Interaction Effects: A Dynamic Spatial Panel Data Bayesian Model Averaging Approach," Discussion Papers 2018/234, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    3. repec:eee:rensus:v:77:y:2017:i:c:p:731-747 is not listed on IDEAS
    4. Hao, Yu & Wei, Yi-Ming, 2015. "When does the turning point in China's CO2 emissions occur? Results based on the Green Solow model," Environment and Development Economics, Cambridge University Press, vol. 20(06), pages 723-745, December.
    5. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2017. "Carbon Dioxide Emissions and Economic Growth: An Assessment Based on Production and Consumption Emission Inventories," Ecological Economics, Elsevier, vol. 135(C), pages 269-279.
    6. Thomas Jobert & Fatih Karanfil & Anna Tykhonenko, 2015. "Trade and Environment: Further Empirical Evidence from Heterogeneous Panels Using Aggregate Data," GREDEG Working Papers 2015-31, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    7. Willenbockel, Dirk, 2014. "Reflections on the prospects for pro-poor low-carbon growth," MPRA Paper 69863, University Library of Munich, Germany.

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