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2018
- ISIDORE Id: 10670/1.3cee98...
- 1695-7253
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Investigaciones Regionales - Journal of Regional Research
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Fortunes Household income Personal income Family incomeCiter ce document
Majed Atwi et al., « CO2 Kuznets curve revisited: from cross-sections to panel data models », Investigaciones Regionales - Journal of Regional Research, ID : 10670/1.3cee98...
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The Environmental Kuznets Curve (EKC) predicts that environmental degradation intensifies when per capita income increases and subsequently subsides after a certain income level is reached, resulting in an inverted U-shaped relationship. There is abundant literature on the topic that corroborates the existence of a positive income elasticity for environmental quality. However, results are controversial.We take the case of CO2, by comparing the results of the cross-sectional estimates with those derived from a panel approach. To this end, we use data from 182 countries during the period 1992-2011. We found that the EKC hypothesis is acceptable under both approaches, although the estimated turning points in cross-sections seem unreliable. Our application underlines the importance of adequately address central problems such as heterogeneity, structural breaks and spatial interaction. JEL Classification: Q25; L83.
