Environmental Kuznets Curves for Carbon Emissions: A Critical Survey

Aslanidis, Nektarios

doi:10.2139/ssrn.1498484

Cited by 47 publications

(28 citation statements)

References 57 publications

(26 reference statements)

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“…Following Stern (2004) who points out that most of the early EKC literature is econometrically weak and the common assumption of cross-dependence can lead to biased results (Aslanidis, 2009;Wagner, 2008), we apply the so-called first and second generation panel unit root and cointegration test and compare the results in two different sections of the paper.…”

Section: Discussionmentioning

confidence: 99%

Economic growth and carbon dioxide emissions: An analysis of Latin America and the Caribbean

Jardón

Kuik

Tol

2017

Atm

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RESUMENEn este trabajo se analiza la relación empírica entre las emisiones de dióxido de carbono (CO 2 ) per cápita y el crecimiento económico en un panel de 20 países de América Latina y el Caribe durante el periodo 1971-2011. Dicha relación empírica, conocida en la literatura económica como la hipótesis de la curva de Kuznets ambiental (CKA), sugiere que la relación entre ambas variables tiene en el largo plazo una relación funcional en forma de U-invertida, es decir, a partir de cierto nivel de renta per cápita, un mayor crecimiento económico iría acompañado de mejoras en la calidad ambiental. Si bien esta hipótesis ha sido estudiada desde la década de 1990, recientemente su validez empírica ha sido cuestionada, entre otras cosas, por la falta de análisis de estacionariedad de las variables, y en un contexto de datos panel, la presencia de dependencia cruzada. Tomando en cuenta ambas críticas, empleamos novedosas pruebas de raíces unitarias y técnicas de cointegración robustas para la presencia de dependencia en el panel. Encontramos resultados contradictorios dependiendo del supuesto de dependencia cruzada entre los países. Bajo el supuesto de independencia cruzada, se confirma la existencia de una CKA con puntos de quiebre realistas. Sin embargo, dicho supuesto es rechazado posteriormente, concluyendo así que en presencia de dependencia cruzada en el panel, no se puede establecer una relación de equilibrio a largo plazo entre las variables, i.e., se rechaza la existencia de una CKA. ABSTRACTThis paper analyzes the empirical relationship between carbon dioxide (CO 2 ) emissions per-capita and economic growth in a panel of 20 Latin American and Caribbean countries over the period 1971-2011. This empirical relationship, known in the economic literature as the Environmental Kuznets Curve (EKC) hypothesis, suggests that the relationship between these variables, in the long run, follows an inverse U-shape, that is, from a certain level of per-capita income, an increased economic growth would be accompanied by improvements in environmental quality. Although this hypothesis has been studied since the 1990s, its empirical validity has recently been questioned on the basis of, among other things, the lack of diagnosis of the stationarity properties of the variables, and in a panel data context, the presence of cross-sectional dependence. Taking into account both criticisms, we use recent unit root tests and cointegration techniques that are robust to the presence of cross-sectional dependence. We find contradictory results depending on the assumption of cross-dependence. Under the assumption of cross-independence, the existence of an EKC with a realistic turning point is confirmed. However, this assumption is subsequently rejected, and because of the presence of cross-dependence in the panel, a long-run equilibrium relationship between the variables cannot be established, and we reject the existence of an EKC.

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Section: Discussionmentioning

confidence: 99%

Economic growth and carbon dioxide emissions: An analysis of Latin America and the Caribbean

Jardón

Kuik

Tol

2017

Atm

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“…A number of surveys have been done on the EKC hypothesis, such as Lieb [50]; He [33]; Dinda [16]; Stern [66]; Payne [56]; Aslanidis [5]; Bo [10]; Kijima et al [41] and Pastern and Figueroa [55]; that cover theoretical as well as empirical studies. One of the main purposes of studies is to find out whether the EKC concept exists and, if it exists, to find reasons for its inverted U-shape.…”

Section: A Brief Literature Reviewmentioning

confidence: 99%

The impact of international trade on environmental quality: The case of transition countries

Halıcıoğlu

Ketenci

2016

Energy

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“…Unless the model satisfies the co-integration properties, the EKC's results may be unreliable. Even the most recent econometric tools such as non-parametric models, which do not require any specification of the functional form, do not yield conclusive outcomes (Aslanidis, 2009). Soyas and Sari (2009) express the EKC research as having failed to ''y yield unanimous results.'…”

Section: Review Of Literaturementioning

confidence: 99%