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Which Industry is Greener? Empirical Study for Nine Industries in OECD Countries


  • Fujii, Hidemichi
  • Managi, Shunsuke


This study analyzed the relationship between CO2 emissions of different industries and economic growth in OECD countries from 1970 to 2005. We tested an environmental Kuznets curve (EKC) hypothesis and found that total CO2 emissions from nine industries show an N-shaped trend instead of an inverted U or monotonic increasing trend with increasing income. The EKC hypothesis for sector-level CO2 emissions was supported in (1) paper, pulp and printing industry, (2) wood and wood products industry, and (3) construction industry. We also found that emissions from coal and oil increase with economic growth in steel and construction industries. Meanwhile, non-metallic minerals, machinery, and transport equipment industries tend to have increased emissions from oil and electricity with increased economic development. Finally, the EKC turning point and the relationship between GDP per capita and sectoral CO2 emissions differ among industries according to the fuel type used. Therefore, the environmental policies for CO2 reduction need to consider these differences in industrial characteristics.

Suggested Citation

  • Fujii, Hidemichi & Managi, Shunsuke, 2012. "Which Industry is Greener? Empirical Study for Nine Industries in OECD Countries," MPRA Paper 44229, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:44229

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    Cited by:

    1. 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.
    2. Pablo-Romero, M.P. & Cruz, L. & Barata, E., 2017. "Testing the transport energy-environmental Kuznets curve hypothesis in the EU27 countries," Energy Economics, Elsevier, vol. 62(C), pages 257-269.
    3. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Optimal production resource reallocation for CO2 emissions reduction in manufacturing sectors," MPRA Paper 64703, University Library of Munich, Germany.
    4. repec:voj:journl:v:64:y:2017:i:1:p:93-112 is not listed on IDEAS
    5. Sakamoto, Tomoyuki & Managi, Shunsuke, 2015. "Energy pricing impact on domestic economy under recent climate action," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 150-162.
    6. Wang, Yuan & Zhang, Chen & Lu, Aitong & Li, Li & He, Yanmin & ToJo, Junji & Zhu, Xiaodong, 2017. "A disaggregated analysis of the environmental Kuznets curve for industrial CO2 emissions in China," Applied Energy, Elsevier, vol. 190(C), pages 172-180.
    7. repec:gam:jsusta:v:9:y:2017:i:5:p:687-:d:96862 is not listed on IDEAS
    8. repec:gam:jsusta:v:10:y:2018:i:1:p:244-:d:127622 is not listed on IDEAS
    9. repec:eee:ecolec:v:139:y:2017:i:c:p:33-44 is not listed on IDEAS
    10. repec:ebl:ecbull:eb-17-00684 is not listed on IDEAS
    11. Fujii, Hidemichi & Managi, Shunsuke, 2015. "Economic development and multiple air pollutant emissions from the industrial sector," MPRA Paper 67027, University Library of Munich, Germany.
    12. repec:eee:enepol:v:106:y:2017:i:c:p:326-344 is not listed on IDEAS
    13. repec:eee:energy:v:125:y:2017:i:c:p:44-54 is not listed on IDEAS
    14. Gaigalis, Vygandas & Skema, Romualdas, 2015. "Analysis of the fuel and energy transition in Lithuanian industry and its sustainable development in 2005–2013 in compliance with the EU policy and strategy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 265-279.

    More about this item


    environmental Kuznets curve; CO2 emission; industrial sector; OECD countries;

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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