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Hold Your Breath: A New Index of Air Quality

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  • A. Bühn
  • M.R. Farzanega

Abstract

Environmental quality and climate change have long attracted attention in policy debates. Recently, air quality has emerged on the policy agenda. We calculate a new index of air quality using CO2and SO2 emissions per capita as indicators and provide a ranking for 122 countries from 1985 to 2005.The empirical analysis supports the EKC hypothesis and shows a significant influence of determinants such as energy efficiency, industrial production, electricity produced from coal sources, and urbanization on air quality. According to our index, Luxemburg, Norway, Iceland, Switzerland, and Japan are among the top 5 countries in terms of air quality performance. The Democratic Republic of Congo, Eritrea, Ethiopia, Togo, and Nepal performed worst in 2005.

Suggested Citation

  • A. Bühn & M.R. Farzanega, 2011. "Hold Your Breath: A New Index of Air Quality," Working Papers 11-24, Utrecht School of Economics.
    • Handle: RePEc:use:tkiwps:1124
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    1. Neelakanta N.T. & Haripriya Gundimeda & Vinish Kathuria, 2013. "Does Environmental Quality Influence FDI Inflows? A Panel Data Analysis for Indian States," Review of Market Integration, India Development Foundation, vol. 5(3), pages 303-328, December.

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    More about this item

    Keywords

    Development; Emissions; Air quality; MIMIC model; EKC hypothesis;
    All these keywords.

    JEL classification:

    • O56 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Oceania
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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