Tests of the EKC Hypothesis using CO2 Panel Data
Environmental Kuznets Curve depicts the long-term relationship between pollution and economic growth. It hypothesizes that during the initial stages of economic growth environmental quality will deteriorate, then, after reaching some turning point, it will improve as the economy grows. In the past decade, lots of empirical literature provided both supports and criticism to this hypothesis. However, as we know from econometrics, when data contain stochastic trends, the conclusions drawn from such analysis might be meaningless. In this paper, we test the stationarities of a number of key variables used in such analyses using a panel data set for 50 countries over 50 years. The tests with different null hypothesis find that the data are stochastically trending in the time-series dimension. Given this, the regressions and interpretation of pollution-growth models should be interpreted with care. Further tests on cointegration of appropriate model are required.
|Date of creation:||2004|
|Contact details of provider:|| Postal: P.O. Box 1700, STN CSC, Victoria, B.C., V8W 2Y2|
Phone: (250) 721-8532
Fax: (250) 721-6214
Web page: http://web.uvic.ca/~repa/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:rep:wpaper:2004-03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G.C. van Kooten)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.