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Economic growth and environmental pressure: a worldwide panel analysis

  • Bagliani Marco

    ()

  • Bravo Giangiacomo

    ()

  • Dalmazzone Silvana

    ()

  • Giaccaria Sergio

    ()

  • Golia Silvia

    ()

    (University of Turin)

This paper deepens the consumption-based line of inquiry on the Environmental Kuznets Curve (EKC) question by means of a large panel dataset of world countries covering the 1961–2003 period. As indicator of environmental pressure, we employ ecological footprint estimates. The ecological footprint is a consumption-based measure, since it attributes the environmental impact of a given good or service to the final consumer, independently of where the supplying area is located. We measure income by means of per capita GDP expressed both in absolute and in purchasing power parity (PPP) terms. None of the estimated models show evidence of a de-linking between economic growth and environmental pressure for high levels of income. Hence, as a whole, our analysis does not support the EKC hypothesis.

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Paper provided by University of Turin in its series Department of Economics and Statistics Cognetti de Martiis. Working Papers with number 200812.

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Length: 16 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:uto:dipeco:200812
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  1. Bagliani, Marco & Bravo, Giangiacomo & Dalmazzone, Silvana, 2008. "A consumption-based approach to environmental Kuznets curves using the ecological footprint indicator," Ecological Economics, Elsevier, vol. 65(3), pages 650-661, April.
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  14. Perman, Roger & Stern, David I., 2003. "Evidence from panel unit root and cointegration tests that the Environmental Kuznets Curve does not exist," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(3), September.
  15. John A. List & Mitch Kunce, 2000. "Environmental Protection and Economic Growth: What Do the Residuals Tell Us?," Land Economics, University of Wisconsin Press, vol. 76(2), pages 267-282.
  16. de Bruyn, S. M. & Opschoor, J. B., 1997. "Developments in the throughput-income relationship: theoretical and empirical observations," Ecological Economics, Elsevier, vol. 20(3), pages 255-268, March.
  17. Wackernagel, Mathis & Onisto, Larry & Bello, Patricia & Callejas Linares, Alejandro & Susana Lopez Falfan, Ina & Mendez Garcia, Jesus & Isabel Suarez Guerrero, Ana & Guadalupe Suarez Guerrero, Ma., 1999. "National natural capital accounting with the ecological footprint concept," Ecological Economics, Elsevier, vol. 29(3), pages 375-390, June.
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  20. Suri, Vivek & Chapman, Duane, 1998. "Economic growth, trade and energy: implications for the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 25(2), pages 195-208, May.
  21. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
  22. Canas, Angela & Ferrao, Paulo & Conceicao, Pedro, 2003. "A new environmental Kuznets curve? Relationship between direct material input and income per capita: evidence from industrialised countries," Ecological Economics, Elsevier, vol. 46(2), pages 217-229, September.
  23. Rothman, Dale S., 1998. "Environmental Kuznets curves--real progress or passing the buck?: A case for consumption-based approaches," Ecological Economics, Elsevier, vol. 25(2), pages 177-194, May.
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