COUNTRY-SPECIFIC ENVIRONMENTAL KUZNETS CURVES: A RANDOM COEFFICIENT APPROACH APPLIED TO HIGH-INCOME COUNTRIES

Cross-country estimations of the Environmental Kuznets Curve (EKC) to empirically analyze the relationship between income and pollution have generally assumed a common structure for all countries. Since this latter feature is not supported by economic theory, this paper uses the Random Coefficient M...

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Autores principales: Figueroa B,Eugenio, Pastén C,Roberto
Lenguaje:English
Publicado: Universidad de Chile. Departamento de Economía 2009
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Acceso en línea:http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862009000100001
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spelling oai:scielo:S0718-528620090001000012010-03-17COUNTRY-SPECIFIC ENVIRONMENTAL KUZNETS CURVES: A RANDOM COEFFICIENT APPROACH APPLIED TO HIGH-INCOME COUNTRIESFigueroa B,EugenioPastén C,Roberto Environmental Kuznets Curve random coefficients panel unit roots weak exogeneity structural break Cross-country estimations of the Environmental Kuznets Curve (EKC) to empirically analyze the relationship between income and pollution have generally assumed a common structure for all countries. Since this latter feature is not supported by economic theory, this paper uses the Random Coefficient Model proposed by Swamy (1970) and empirically estimates EKCsfor sulfur dioxide with specific turning points from a sample of73 high and low income countries. A crucial aspect is that there are large differences between the estimated turning points of the EKCs for the different countries in the sample, which points to the relevance of using the approach employed here since assuming a common structure for all countries erroneously hides this relevant empirical feature. Moreover, the analysis of the structure of the EKCs estimated suggests that regulatory processes resembling market mechanisms could induce the empirical emergence ofEKCs. Finally, taking into consideration the most recent concerns in the literature, we econometrically checked, on the one hand for the validity of the usual theoretical assumption of exogeneity of the per capita income variable in the EKC relationship and, on the other hand, for an eventual structural change causing the sign change in the pollution-per capita income relationship of the EKC. The weak exogeneity and the structural break tests employed rendered plausible that income per capita is really the driver variable determining the EKC relationship found.info:eu-repo/semantics/openAccessUniversidad de Chile. Departamento de EconomíaEstudios de economía v.36 n.1 20092009-06-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862009000100001en10.4067/S0718-52862009000100001
institution Scielo Chile
collection Scielo Chile
language English
topic Environmental Kuznets Curve
random coefficients
panel unit roots
weak exogeneity
structural break
spellingShingle Environmental Kuznets Curve
random coefficients
panel unit roots
weak exogeneity
structural break
Figueroa B,Eugenio
Pastén C,Roberto
COUNTRY-SPECIFIC ENVIRONMENTAL KUZNETS CURVES: A RANDOM COEFFICIENT APPROACH APPLIED TO HIGH-INCOME COUNTRIES
description Cross-country estimations of the Environmental Kuznets Curve (EKC) to empirically analyze the relationship between income and pollution have generally assumed a common structure for all countries. Since this latter feature is not supported by economic theory, this paper uses the Random Coefficient Model proposed by Swamy (1970) and empirically estimates EKCsfor sulfur dioxide with specific turning points from a sample of73 high and low income countries. A crucial aspect is that there are large differences between the estimated turning points of the EKCs for the different countries in the sample, which points to the relevance of using the approach employed here since assuming a common structure for all countries erroneously hides this relevant empirical feature. Moreover, the analysis of the structure of the EKCs estimated suggests that regulatory processes resembling market mechanisms could induce the empirical emergence ofEKCs. Finally, taking into consideration the most recent concerns in the literature, we econometrically checked, on the one hand for the validity of the usual theoretical assumption of exogeneity of the per capita income variable in the EKC relationship and, on the other hand, for an eventual structural change causing the sign change in the pollution-per capita income relationship of the EKC. The weak exogeneity and the structural break tests employed rendered plausible that income per capita is really the driver variable determining the EKC relationship found.
author Figueroa B,Eugenio
Pastén C,Roberto
author_facet Figueroa B,Eugenio
Pastén C,Roberto
author_sort Figueroa B,Eugenio
title COUNTRY-SPECIFIC ENVIRONMENTAL KUZNETS CURVES: A RANDOM COEFFICIENT APPROACH APPLIED TO HIGH-INCOME COUNTRIES
title_short COUNTRY-SPECIFIC ENVIRONMENTAL KUZNETS CURVES: A RANDOM COEFFICIENT APPROACH APPLIED TO HIGH-INCOME COUNTRIES
title_full COUNTRY-SPECIFIC ENVIRONMENTAL KUZNETS CURVES: A RANDOM COEFFICIENT APPROACH APPLIED TO HIGH-INCOME COUNTRIES
title_fullStr COUNTRY-SPECIFIC ENVIRONMENTAL KUZNETS CURVES: A RANDOM COEFFICIENT APPROACH APPLIED TO HIGH-INCOME COUNTRIES
title_full_unstemmed COUNTRY-SPECIFIC ENVIRONMENTAL KUZNETS CURVES: A RANDOM COEFFICIENT APPROACH APPLIED TO HIGH-INCOME COUNTRIES
title_sort country-specific environmental kuznets curves: a random coefficient approach applied to high-income countries
publisher Universidad de Chile. Departamento de Economía
publishDate 2009
url http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-52862009000100001
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