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Economic Growth and CO2 Emissions: a Nonparametric Approach

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  • Théophile AZOMAHOU
  • NGUYEN Van Phu

Abstract

This paper examines the empirical interplay between economic growth and greenhouse gas emissions using panel data.Relying on nonparametric methods, we find evidence supporting specifications which assume the constancy of the relationship between per capita CO2 emissions and per capita GDP during the period of the study. Moreover, the usually adopted polynomial functional form is rejected against our nonparametric modelling. It is shown that the relationship between gas emissions and GDP displays more complex patterns, despite its monotonous shape, than the well-known Kuznets curve obtained from ad hoc parametric specifications. The economic development process has a negative effect on gas emissions, especially for the early and the advanced stages of development. As a result, developed countries as well as developing countries should make efforts to reduce CO2 emissions.

Suggested Citation

  • Théophile AZOMAHOU & NGUYEN Van Phu, 2001. "Economic Growth and CO2 Emissions: a Nonparametric Approach," Working Papers of BETA 2001-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  • Handle: RePEc:ulp:sbbeta:2001-01
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    5. Galeotti, Marzio & Manera, Matteo & Lanza, Alessandro, 2006. "On the Robustness of Robustness Checks of the Environmental Kuznets Curve," Climate Change Modelling and Policy Working Papers 12045, Fondazione Eni Enrico Mattei (FEEM).
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    9. Cuma Bozkurt & Yusuf Akan, 2014. "Economic Growth, CO2 Emissions and Energy Consumption: The Turkish Case," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 484-494.
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    11. Sofia Pessoa e Costa & Stéphane Robin, 2007. "The Impact Of Training Programmes On Wages In France: An Evaluation Of The “Qualifying Contract” Using Propensity Scores," Working Papers of BETA 2007-18, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    12. Chiara Martini, 2006. "The Environmental Kuznets Curve," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, July.
    13. Vollebergh, H.R.J. & Dijkgraaf, E. & Melenberg, B., 2005. "Environmental Kuznets Curves for CO2 : Heterogeneity Versus Homogeneity," Discussion Paper 2005-25, Tilburg University, Center for Economic Research.
    14. Murat Yildizoglu & Nicolas Carayol & Pascale Roux, 2005. "Coordination Failures in Network Formation," Post-Print hal-00160385, HAL.
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    16. Jalal EL OUARDIGHI & Rabija SOMUN-KAPETANOVIC, 2006. "Convergence des contributions aux inégalités de richesse dans le développement des pays européens," Working Papers of BETA 2006-19, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    17. Kaika, Dimitra & Zervas, Efthimios, 2013. "The Environmental Kuznets Curve (EKC) theory—Part A: Concept, causes and the CO2 emissions case," Energy Policy, Elsevier, vol. 62(C), pages 1392-1402.
    18. Aller, Carlos & Ductor, Lorenzo & Grechyna, Daryna, 2021. "Robust determinants of CO2 emissions," Energy Economics, Elsevier, vol. 96(C).
    19. Stéphane Betrand & Kene Boun My & Alban Verchère, 2005. "Faire émerger la coopération internationale : une approche expérimentale comparée du bilatéralisme et du multilatéralisme," Working Papers of BETA 2005-13, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    20. Tapas K. Mishra, 2006. "A Further Look into the Demography-based GDP Forecasting Method," Working Papers of BETA 2006-17, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    21. Li Qin & Eleftherios Spyromitros & Moïse Sidiropoulos, 2007. "Monetary Policy with Uncertain Central Bank Preferences for Robustness," Working Papers of BETA 2007-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    22. Marzio Galeotti, 2003. "Economic Development and Environmental Protection," Working Papers 2003.89, Fondazione Eni Enrico Mattei.
    23. Tuğay GÜNEL, 2019. "Relationship between CO2 Emission and Economic Growth in Turkic Countries: A Panel Causality Analysis," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(40).

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    More about this item

    Keywords

    CO2 emissions; Economic development; Environmental Kuznets curve; Nonparametric estimation; Panel data;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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