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Diffusion of Emissions Abating Technology

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  • David I. Stern

    () (Department of Economics, Rensselaer Polytechnic Institute, Troy, NY 12180-3590, USA)

Abstract

The environmental Kuznets curve (EKC) has been extensively criticized on econometric and theoretical grounds. Recent econometric results and case studies show that national emissions of important pollutants are monotonic in income but changes in technology can lead over time to reductions in pollution - a lowering of the EKC - and that pollution reducing innovations and standards may be adopted with relatively short time lags in some developing countries. This study combines the recent literature on measuring environmental efficiency and technological change using production frontier methods with the use of the Kalman filter - a time series method for signal extraction - to model the state of abatement technology in a panel of countries over time. The EKC is reformulated as the best practice technology frontier - countries' position relative to the frontier reflects the degree to which they have adopted best practice. The results are used to determine whether countries are converging to best practice over time and how many years it will take each country to achieve current best practice. The model is applied to sulfur dioxide emissions from sixteen mainly developed countries.

Suggested Citation

  • David I. Stern, 2004. "Diffusion of Emissions Abating Technology," Rensselaer Working Papers in Economics 0420, Rensselaer Polytechnic Institute, Department of Economics.
  • Handle: RePEc:rpi:rpiwpe:0420
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    File URL: http://www.economics.rpi.edu/workingpapers/rpi0420.pdf
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. A Clarification, 14 Years On...
      by David Stern in Stochastic Trend on 2010-11-27 05:49:00
    2. World Values Map
      by David Stern in Stochastic Trend on 2009-10-22 07:25:00

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    Cited by:

    1. David I. Stern, 2005. "The Effect of NAFTA on Energy and Environmental Efficiency in Mexico," Rensselaer Working Papers in Economics 0511, Rensselaer Polytechnic Institute, Department of Economics.
    2. Dobes Leo & Jotzo Frank & Stern David I., 2014. "The Economics of Global Climate Change: A Historical Literature Review," Review of Economics, De Gruyter, vol. 65(3), pages 281-320, December.
    3. Stern, David, 2014. "Rethinking the Emissions-Income Relationship in Terms of Growth Rates," 2014 Conference (58th), February 4-7, 2014, Port Maquarie, Australia 165877, Australian Agricultural and Resource Economics Society.
    4. Di Vita, Giuseppe, 2008. "Is the discount rate relevant in explaining the Environmental Kuznets Curve?," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 191-207.
    5. Stern, David I., 2009. "Between Estimates of the Environmental Kuznets Curve," Research Reports 94883, Australian National University, Environmental Economics Research Hub.
    6. Stern, David I., 2010. "Between estimates of the emissions-income elasticity," Ecological Economics, Elsevier, vol. 69(11), pages 2173-2182, September.
    7. Stern, David I., 2012. "Modeling international trends in energy efficiency," Energy Economics, Elsevier, vol. 34(6), pages 2200-2208.
    8. Soytas, Ugur & Sari, Ramazan & Ewing, Bradley T., 2007. "Energy consumption, income, and carbon emissions in the United States," Ecological Economics, Elsevier, vol. 62(3-4), pages 482-489, May.
    9. Auci, Sabrina & Trovato, Giovanni, 2011. "The environmental Kuznets curve within European countries and sectors: greenhouse emission, production function and technology," MPRA Paper 53442, University Library of Munich, Germany.
    10. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    11. Tanger, Shaun M. & Zeng, Peng & Morse, Wayde & Laband, David N., 2011. "Macroeconomic conditions in the U.S. and congressional voting on environmental policy: 1970-2008," Ecological Economics, Elsevier, vol. 70(6), pages 1109-1120, April.
    12. David I. Stern, 2005. "Reversal in the Trend of Global Anthropogenic Sulfur Emissions," Rensselaer Working Papers in Economics 0504, Rensselaer Polytechnic Institute, Department of Economics.
    13. Albu, Lucian Liviu, 2007. "Spatial Econometrics - Applications To Investigate Distribution Of Co2 Emission In Europe," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(1), pages 45-56, March.
    14. Verbeke, Tom & De Clercq, Marc, 2006. "The income-environment relationship: Evidence from a binary response model," Ecological Economics, Elsevier, vol. 59(4), pages 419-428, October.
    15. Auci, Sabrina & Castelli, Annalisa, 2011. "Pollution and economic growth: a maximum likelihood estimation of environmental Kuznets curve," MPRA Paper 53441, University Library of Munich, Germany.
    16. David I. Stern, 2011. "From Correlation to Granger Causality," Crawford School Research Papers 1113, Crawford School of Public Policy, The Australian National University.

    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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