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Empirical estimates of the methane–income elasticity

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  • Fernández-Amador, Octavio
  • Francois, Joseph
  • Oberdabernig, Doris
  • Tomberger, Patrick

Abstract

ABSTRACT: We estimate the income-elasticity of methane emissions per capita derived from production, final production, and consumption in a global sample of countries for 1997–2011. We find relative decoupling between emissions and income, and evidence for a piecewise-linear relationship. The relation between economic growth and emissions improves as countries reach high levels of income, although the magnitude of the improvement is small. This points to very minor methane-efficiency gains from economic development.

Suggested Citation

  • Fernández-Amador, Octavio & Francois, Joseph & Oberdabernig, Doris & Tomberger, Patrick, 2018. "Empirical estimates of the methane–income elasticity," Papers 1172, World Trade Institute.
  • Handle: RePEc:wti:papers:1172
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    References listed on IDEAS

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    1. James H. Stock & Mark W. Watson, 2008. "Heteroskedasticity-Robust Standard Errors for Fixed Effects Panel Data Regression," Econometrica, Econometric Society, vol. 76(1), pages 155-174, January.
    2. Fernández-Amador, Octavio & Francois, Joseph & Oberdabernig, Doris & Tomberger, Patrick, 2018. "The methane footprint of nations: Evidence from global panel data," Papers 1102, World Trade Institute.
    3. Aichele, Rahel & Felbermayr, Gabriel, 2012. "Kyoto and the carbon footprint of nations," Journal of Environmental Economics and Management, Elsevier, vol. 63(3), pages 336-354.
    4. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    5. Caner, Mehmet & Hansen, Bruce E., 2004. "Instrumental Variable Estimation Of A Threshold Model," Econometric Theory, Cambridge University Press, vol. 20(5), pages 813-843, October.
    6. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    7. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2017. "Carbon Dioxide Emissions and Economic Growth: An Assessment Based on Production and Consumption Emission Inventories," Ecological Economics, Elsevier, vol. 135(C), pages 269-279.
    8. Rahel Aichele & Gabriel Felbermayr, 2015. "Kyoto and Carbon Leakage: An Empirical Analysis of the Carbon Content of Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 97(1), pages 104-115, March.
    9. Hansen, Bruce E, 1996. "Inference When a Nuisance Parameter Is Not Identified under the Null Hypothesis," Econometrica, Econometric Society, vol. 64(2), pages 413-430, March.
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    11. Francisco Estrada & Pierre Perron & Benjamin Martinez-Lopez, 2013. "Statistically-derived contributions of diverse human influences to 20th century temperature changes," Boston University - Department of Economics - Working Papers Series 2013-017, Boston University - Department of Economics.
    12. Jorgenson, Andrew & Birkholz, Ryan, 2010. "Assessing the causes of anthropogenic methane emissions in comparative perspective, 1990-2005," Ecological Economics, Elsevier, vol. 69(12), pages 2634-2643, October.
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    1. repec:cpr:ceprdp:14081 is not listed on IDEAS
    2. Fernández-Amador, Octavio & Francois, Joseph & Oberdabernig, Doris & Tomberger, Patrick, 2018. "Economic Growth, Sectoral Structures, and Environmental Methane Footprints," Papers 1193, World Trade Institute.

    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • 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

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