scholarly journals The Environmental Kuznets Curve: Exploring a Fresh Specification

Author(s):  
David F. Bradford ◽  
Rebecca A Fender ◽  
Stephen H. Shore ◽  
Martin Wagner

Abstract The objective of this paper is primarily methodological. Using a new specification, we reanalyze the data on worldwide environmental quality investigated by Gene Grossman and Alan Krueger in their well-known paper on the environmental Kuznets curve (which postulates an inverse U-shaped relationship between income level and pollution). This new specification avoids using nonlinear transformations of potentially nonstationary regressors in panel estimation, which is a major unresolved econometric problem plaguing much of the existing literature. We furthermore draw conclusions from fixed effects estimation, which had eluded Grossman and Krueger. Our estimation results indicate the presence of an EKC for only six of the fourteen pollutants, whereas Grossman and Krueger find support for all but one pollutant.

Author(s):  
Wenhao Song ◽  
Chunhui Ye ◽  
Yuheng Liu ◽  
Weisong Cheng

The environmental Kuznets curve (EKC) expresses the relationship between environmental quality and economic growth. Based on the defects of previous studies on EKC using only environmental pollution indicators, this study holds that environmental quality is the result of pollutants after treatment, absorption, and self-purification, including two dimensions of pollution and absorption. Therefore, the environmental pollution and absorption data of 74 key environmental monitoring cities in China from 2005 to 2017 were selected, and a comprehensive index of environmental quality was constructed using the vertical and horizontal grading method. Then, based on the relevant economic growth indicators of these cities, they were divided into first-tier and new first-tier, second-tier, third-tier, and below. It was found that the EKC of the total sample, the first-tier and new first-tier cities, and the second-tier cities presented an inverted N-shape and had passed the second inflection point, where environmental quality continues to improve with the deepening of economic growth. There was no EKC in the third-tier and below cities. The findings have important implications. China can cross the second inflection point of the EKC and improve environmental quality at a low income level. Therefore, by vigorously developing cleaner production technologies and raising residents’ awareness of environmental protection, it is possible to improve environmental quality at a lower income level than expected, which provides a useful reference for other developing countries.


Energies ◽  
2020 ◽  
Vol 13 (15) ◽  
pp. 3956 ◽  
Author(s):  
Elkhan Richard Sadik-Zada ◽  
Wilhelm Loewenstein

The present inquiry addresses the income-environment relationship in oil-producing countries and scrutinizes the further drivers of atmospheric pollution in the respective settings. The existing literature that tests the environmental Kuznets curve hypothesis within the framework of the black-box approaches provides only a bird’s-eye perspective on the long-run income-environment relationship. The aspiration behind this study is making the first step toward the disentanglement of the sources of carbon dioxide emissions, which could be employed in the pollution mitigation policies of this group of countries. Based on the combination of two strands of literature, the environmental Kuznets curve conjecture and the resource curse, the paper at hand proposes an augmented theoretical framework of this inquiry. To approach the research questions empirically, the study employs advanced panel cointegration techniques. To avoid econometric misspecification, the study also employs for the first time a nonparametric time-varying coefficient panel data estimator with fixed effects (NPFE) for the dataset of 37 oil-producing countries in the time interval spanning between 1989 and 2019. The empirical analysis identifies the level of per capita income, the magnitude of oil rents, the share of fossil fuel-based electricity generation in the energy mix, and the share of the manufacturing sector in GDP as essential drivers of carbon dioxide emissions in the oil-rich countries. Tertiarization, on the contrary, leads to a substantial reduction of emissions. Another striking result of this study is that level of political rights and civil liberties are negatively associated with per capita carbon emissions in this group of countries. Furthermore, the study decisively rejects an inverted U-shaped income-emission relationship and validates the monotonically or exponentially increasing impact of average income on carbon dioxide emissions.


2021 ◽  
Vol 22 (82) ◽  
pp. 191-200
Author(s):  
Fábio Gama ◽  
Suzana Quinet de Andrade Bastos ◽  
Tiana de Paula Assis ◽  
Luíza Carvalho

This article evaluates the evolution of motorcycle adoption in Brazil. More specifically, we aim to empirically understand the relationship between the number of two-wheeled vehicles and the country's level of development, as well as some of the factors that reinforce vehicle adoption in determined areas. The work uses data for 5565 Brazilian municipalities from 2010 to 2016 and implements a fixed-effects panel model. The results indicate an inverse relationship between income and number of motorcycles, corroborating the hypothesis of a Kuznets curve for motorcycles and income level in Brazil. In addition to the validation of the increase in the number of motorcycles observed in the country in recent years, we also find evidence that the increase in the number of motorcycles in municipalities may be related to the drop in formal employment, and big municipalities have the lowest per capita motorcycle ratio.


2018 ◽  
Vol 30 (3) ◽  
pp. 444-461 ◽  
Author(s):  
Caner Demir ◽  
Raif Cergibozan ◽  
Adem Gök

The aim of the study is to investigate the impact of income inequality on environmental quality in Turkey within the Environmental Kuznets Curve framework. In order to observe the short-run and long-run effects of income inequality on environmental quality, an autoregressive distributed lag bounds test on CO2 emission has been employed for the period 1963–2011 of Turkey. The results of the analysis reveal that there is a negative association between CO2 emission level and income inequality, which implies that increasing income inequality reduces environmental degradation in Turkey. Hence, a greater inequality in the society leads to less aggregate consumption in the economy due to lower propensity to emit in the richer households resulting in better environmental quality. The findings confirm an argument in the existing literature, which suggests that for developing countries, until a certain level of development, environmental degradation increases as income inequality in the society decreases. The results also confirm the Environmental Kuznets Curve hypothesis.


2009 ◽  
Author(s):  
Carlos A. Flores ◽  
Alfonso Flores-Lagunes ◽  
Dimitris Kapetanakis

1997 ◽  
Vol 2 (4) ◽  
pp. 357-367 ◽  
Author(s):  
EDWARD B. BARBIER

This special issue is concerned with environmental Kuznets curves (EKC) - the hypothesis that there is an ‘inverted-U’ relationship between various indicators of environmental degradation and levels of per capita income. Explanations as to why environmental degradation should first increase then decline with income have focused on a number of underlying relationships, including:the effects of structural economic change on the use of the environment for resource inputs and to assimilate waste;the link between the demand for environmental quality and income;types of environmental degradation and ecological processes.


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