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Environmental Kuznets Curve for carbon dioxide emissions: lack of robustness to heterogeneity?

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  • Thomas Jobert

    () (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique)

  • Fatih Karanfil

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

  • Anna Tykhonenko

    () (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper focuses solely on the energy consumption, carbon dioxide ( 2 CO ) emissions and economic growth nexus applying the iterative Bayesian shrinkage procedure. The environmental Kuznets curve (EKC) hypothesis is tested using this method for the first time in this literature and the results obtained suggest that: first, the EKC hypothesis is rejected for 49 out of the 51 countries considered when heterogeneity in countries' energy efficiencies and cross-country differences in the 2 CO emissions trajectories are accounted for; second, a classification of the results with respect to countries' development levels reveals that an overall inverted U-shape curve is due to the fact that increase in gross domestic product (GDP) in the high-income countries decreases emissions, while in the low-income countries it increases emissions.

Suggested Citation

  • Thomas Jobert & Fatih Karanfil & Anna Tykhonenko, 2012. "Environmental Kuznets Curve for carbon dioxide emissions: lack of robustness to heterogeneity?," Working Papers halshs-00721675, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00721675
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00721675
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    References listed on IDEAS

    as
    1. Wagner, Martin, 2008. "The carbon Kuznets curve: A cloudy picture emitted by bad econometrics?," Resource and Energy Economics, Elsevier, vol. 30(3), pages 388-408, August.
    2. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    3. Jobert, Thomas & Karanfil, Fatih & Tykhonenko, Anna, 2010. "Convergence of per capita carbon dioxide emissions in the EU: Legend or reality?," Energy Economics, Elsevier, vol. 32(6), pages 1364-1373, November.
    4. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    5. Apergis, Nicholas & Payne, James E., 2010. "The emissions, energy consumption, and growth nexus: Evidence from the commonwealth of independent states," Energy Policy, Elsevier, vol. 38(1), pages 650-655, January.
    6. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    7. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    8. Maddala, G S, et al, 1997. "Estimation of Short-Run and Long-Run Elasticities of Energy Demand from Panel Data Using Shrinkage Estimators," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(1), pages 90-100, January.
    9. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    10. Luzzati, T. & Orsini, M., 2009. "Investigating the energy-environmental Kuznets curve," Energy, Elsevier, vol. 34(3), pages 291-300.
    11. Stern, David I., 2010. "Between estimates of the emissions-income elasticity," Ecological Economics, Elsevier, vol. 69(11), pages 2173-2182, September.
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    Cited by:

    1. Shahbaz, Muhammad & Shafiullah, Muhammad & Papavassiliou, Vassilios & Hammoudeh, Shawkat, 2017. "The CO2-Growth nexus revisited: A nonparametric analysis for G7 economies over nearly two centuries," MPRA Paper 79019, University Library of Munich, Germany, revised 07 May 2017.
    2. Shahbaz, Muhammad & Sinha, Avik, 2018. "Environmental Kuznets Curve for CO2 Emission: A Literature Survey," MPRA Paper 86281, University Library of Munich, Germany, revised 11 Apr 2018.
    3. repec:eee:eneeco:v:65:y:2017:i:c:p:183-193 is not listed on IDEAS
    4. Thomas Jobert & Fatih Karanfil, 2012. "Formation and Deformation of the Environmental Kuznets Curve for CO2 Emissions," Chapters,in: Crisis, Innovation and Sustainable Development, chapter 11 Edward Elgar Publishing.
    5. Shahbaz, Muhammad & Ozturk, Ilhan & Afza, Talat & Ali, Amjad, 2013. "Revisiting the environmental Kuznets curve in a global economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 494-502.
    6. repec:ipg:wpaper:2014-522 is not listed on IDEAS
    7. Menegaki, Angeliki N. & Tsagarakis, Konstantinos P., 2015. "Rich enough to go renewable, but too early to leave fossil energy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1465-1477.

    More about this item

    Keywords

    Environmental Kuznets curve; Bayesian shrinkage estimator; Heterogeneity;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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