A Test for Parameter Homogeneity in CO2Panel EKC Estimations

Abstract

This paper casts doubt on empirical results based on panel estimations of an ''inverted-U'' relationship between per capita GDP and pollution. Using a new dataset for OECD countries on carbon dioxide emissions for the period 1960-1997, we find that the crucial assumption of homogeneity across countries is problematic. Decisively rejected are model specifications that feature even weaker homogeneity assumptions than are commonly used. Furthermore, our results challenge the existence of an overall Environmental Kuznets Curve for carbon dioxide emissions.

The role of foreign direct investment and trade on carbon emissions in Turkey

“…They find that carbon dioxide (CO2) emissions initially increase with GDP and later decline. On the other hand, there are some studies that conflict with the EKC hypothesis for CO2 emission, such as Roberts and Grimes (1997), Dijkgraaf and Vollebergh (2005), Galeotti et al (2006) and for sulfur emission, such as Perman and Stern (2003), Stern and Common (2001). Besides these, Bagliani et al (2008) use ecological footprint (EF) as an environmental indicator and examine the relationship between EF and GDP.…”

The Effect of Organic Farms on Global Greenhouse Gas Emissions

“…Grossman and Krueger (1995) find the turning point to be before a country reaches a per capita income of $8,000. Notable exceptions are Shafik (1994) and Dijkgraaf & Vollebergh (2005) who do not find the same shape for their EKC. The role of industrial production has been incorporated in recent studies of CO 2 emissions.…”

“…Past empirical research that uses the EKC model analyzes the impact of carbon dioxide (Shafik, 1994;Schmalensee et al, 1998;Dijkgraaf & Vollebergh, 2005;Aldy, 2007;Grunewald & Martinez-Zarzoso, 2009;Kumazawa & Callaghan, 2010) and common air pollutants including sulfur dioxide (Grossman & Krueger, 1995;Roca et al, 2001;Harbaugh et al, 2002). One of the few studies which investigated the EKC model for nitrous oxide and methane is the research by Roca et al (2001).…”

An Analysis of the Environmental Kuznets Curve for Carbon Dioxide Emissions: Evidence for OECD and Non-OECD Countries

“…Carbon dioxide does not immediately cause health or environmental problems, as does SO2, nor does emitting CO2 produce strong visible evidence that might inspire public action (Dijkgraaf and Vollebergh, 2005;Halkos, 2003;Lipford and Yandle, 2010;Panayotou, 2003). Instead, CO2 has an indirect but global impact as a GHG (Carson, 2010).…”

“…They discovered instead that CO2emissions increase monotonically with income (Dijkgraaf and Vollebergh, 2005;Galeotti, 2007;Shafik and Bandyopadhyay, 1992;World Bank, 1992). Otherresearchers noticed that CO2 emissions continued to increase only for developing countries (Lipford and Yandle, 2010;Schmalensee et al, 1998).…”