scholarly journals Climate Change and Economic Growth: The Role of Environmental Policy Stringency

2019 ◽  
Vol 11 (8) ◽  
pp. 2273
Author(s):  
Enrico Maria de Angelis ◽  
Marina Di Giacomo ◽  
Davide Vannoni

The paper investigates the relationship between economic growth and environmental quality in the context of the Kuznets curve, which foresees that growth, while initially causing negative externalities for the environment, eventually can be seen also as the solution to environmental degradation. The novelty of the paper is to analyze the role of environmental policies, and in particular the use of market-based and non-market instruments to challenge the pollution plague and mitigate climate change. The results of fixed effects estimates on a sample of 32 countries observed for the period 1992–2012 show the existence of an inverted U-shaped relationship between per capita gross domestic product (GDP) and per-capita CO2 emissions for the quadratic specification, as well as of an N-shaped pattern for the cubic specification. Most importantly, the stringency indexes, i.e., the proxies used to account for environmental regulation, exhibit negative and strongly significant coefficients, suggesting that the policies are effective in reducing environmental damages associated with economic growth.

2012 ◽  
Vol 59 (5) ◽  
pp. 609-623 ◽  
Author(s):  
Maryam Asghari

Recent empirical research has examined the relationship between certain indicators of environmental degradation and income, concluding that in some cases an inverted U-shaped relationship, which has been called an environmental Kuznets curve (EKC), exists between these variables. The source of growth explanation is important for two reasons. First, it demonstrates how the pollution consequences of growth depend on the source of growth. Therefore, the analogy drawn by some in the environmental community between the damaging effects of economic development and those of liberalized trade is, at best, incomplete. Second, the source of growth explanation demonstrates that a strong policy response to income gains is not necessary for pollution to fall with growth. The aim of this paper investigates the role of differences source of growth in environmental quality of Iran. The results show the two growth resources in Iran cause, in the early stages, CO2 emission decreases until turning point but beyond this level of income per capita, economic growth leads to environmental degradation. I find a U relationship between environmental degradation (CO2 emission) and economic growth in Iran.


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.


2013 ◽  
Vol 807-809 ◽  
pp. 732-735
Author(s):  
Shu Qing Zhou

Basing on the theories of Environmental Kuznets Curve,this paper analyzes the relationship between industrial economic growth and waste gas,waste water and solid wastes with the economic and environmental statistics of Chongqing Municipality from 1995 to 2009. The study shows that there is a inverted N-type of environmental Kuznets curve of the industrial waste water with the rising of industrial per capita value, but it lies in the left side of the EKC. There exists a extremely notable relationship between the industrial per capita value and produced volume of industrial solid wastes,but the curve has not come up to the turning point. In order to achieve the harmonious development between industrial economic growth and environmental pollution in Chongqing,we should establish the long-effect mechanism for environmental protection.


2017 ◽  
Vol 4 (5) ◽  
pp. 403-412 ◽  
Author(s):  
Kyle W. Knight ◽  
Juliet B. Schor ◽  
Andrew K. Jorgenson

This study contributes to the emerging literature on connections between climate change and economic inequality by investigating the relationship between domestic wealth inequality and consumption-based carbon emissions for 26 high-income countries from 2000 to 2010. Results of the two-way fixed effects longitudinal models indicate that the effect of wealth inequality, measured as the wealth share of the top decile, on per capita emissions in high-income countries is consistently positive and relatively stable over the time period. This finding is consistent with political economy theories arguing that the concentration of political and economic power that accompanies the concentration of wealth plays an important role in increasing environmental degradation and preventing proenvironmental actions.


Water Policy ◽  
2016 ◽  
Vol 19 (1) ◽  
pp. 28-45 ◽  
Author(s):  
Jinjin Zhao

Utilizing panel data collected in 27 countries from 1960 to 2010, we demonstrate that the relationship between per capita urban water consumption and per capita gross domestic product exhibits an N-shaped pattern. Following the environmental Kuznets curve literature, this relationship can be named the cubic water Kuznets curve. We also demonstrate that water policies significantly influence per capita urban water consumption, which implies that appropriate policy interventions might allow developing countries to achieve economic development with less per capita water consumption.


2018 ◽  
Vol 3 (6) ◽  
pp. 55 ◽  
Author(s):  
Halimahton Borhan ◽  
Elsadig Musa Ahmed ◽  
Mizan Hitam

The purpose of the study is to examine the relationship between CO2 on quality of life and on economic growth in ASEAN 8. Pollution may directly decrease output and quality of life by decreasing productivity of man-made capital and labor. The income levels per capita gross domestic product per capita were measured from the year 1965 to 2010. This study formulates a three equation simultaneous model for empirical research. For panel data, the Hausman specification test is the classical test of whether the fixed or random effects model should be used. In the pollution indicator emissions CO2 in ASEAN 8, the Environmental Kuznets Curve relationship is found.   Keywords: Economic Growth; Environmental Kuznets Curve; Hausman Test; Simultaneity, Endogeneity eISSN 2514-7528 © 2018. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.


2014 ◽  
Vol 14 (4) ◽  
pp. 1501-1542 ◽  
Author(s):  
Donatella Baiardi

Abstract The paper explores the relationship between per capita income and three air pollutants, CO, NMVOCs, and SOx, using a novel dataset based on the 20 regions of Italy. Given the central role of technological progress in long-term environmental problems, we empirically investigate the influence of innovation on the environmental Kuznets curve (EKC). The estimation results validate the existence of an EKC for the three air pollutants considered. Furthermore, the influence of innovation on the inverse-U-shaped curve identified by the theoretical literature is in general empirically confirmed. Finally, the same conclusions also hold when using another dataset related to the aggregate national economy rather than separate regions.


2021 ◽  
Author(s):  
◽  
Simon Michael Carey

<p>Mauritius and Tunisia stand out as two remarkable exceptions to the African economic growth experience. Since their respective independences in 1968 and 1956, both have achieved average real GDP per capita growth well in excess of three percent per year. Export policies featured highly in the developmental strategies of both countries as they transitioned through a dependency on agriculture into manufacturing and then services. What makes this comparison so interesting is that despite such similar success, Tunisia and Mauritius are fundamentally very different. This study comprises the first ever in-depth comparison of these two countries, presenting a qualitative analysis and then augmenting it with a comprehensive set of econometric tests. The focus is on the relationship between exports and economic growth, but the discussion explores the wider context in both countries. Using the Granger-causality approach, we find strong evidence for export-led growth in Mauritius, but no significant evidence of any causal relationship in Tunisia. On the basis of a broader analysis we argue that exports were still important in both countries, but appear to have been more central to the growth process in Mauritius. This broader analysis also highlights that other factors – such as a strong institutional environment – were important in facilitating or directly contributing to such consistent growth.</p>


2021 ◽  
Author(s):  
Ayşe Öcal

This paper aims to analyse the relationship between obesity and economic growth in the context of the Obesity Kuznets Curve model for the Eurasian Economic Union for the years between 2000-2016. The relationship between obesity rates and the real gross domestic product has been examined for the Eurasian Economic Union in the context of the Obesity Kuznets Curve model using the fixed-effects model. The results show that the Obesity Kuznets Curve Model is valid for the Eurasian Economic Union. Therefore, this paper points out that the relationship between obesity rates and economic growth within the Eurasian Economic Union is non-linear.


Author(s):  
Mangasa Augustinus Sipahutar

Abstract             Effect of credit on economic growth, unemployment and poverty provides evidence from Indonesia on the role of banks credit for promoting economic growth and reducing both unemployment and poverty.  To document the link between banks credit and economic growth, we estimate a VAR model and variance decompositions of annual GDP per capita growth rates to examine what proxy measures of banks credit are most important in accounting for economic growth over time and how much they contribute to explaining economic growth.  We also estimate an ECM to document the relationship between banks credit to both unemployment and poverty. This paper revealed bi-direction causality between banks credit and economic growth.  Banks credit promotes economic growth and economic growth affects credit depth and financial development.  Furthermore, banks credit is a growth accelerating factor on Indonesian economic growth.  Banks credit is an endogenous growth and a good predictor on Indonesian economy.Our estimation model explained that credit allocated by banks increases business escalation to the real sectors then promotes economic growth, decreases unemployment rate through increasing in labor demanded, increases income and then decrease poverty.  This overall transmission mechanism just occurred through presence of banks credit by increasing money supply to the real sectors, promotes growth and social welfare. Keywords :  banks credit, economic growth, growth accelerating factor, poverty, unemployment JEL Classification : E51, E52, E58


Sign in / Sign up

Export Citation Format

Share Document