Abstract:The Environment Kuznets Curve (EKC) predicts an inverted U-shaped relationship between economic growth and environmental pollution. Current analyses frequently employ models which restrict the nonlinearities in the data to be explained by the economic growth variable only. We propose a Generalized Cointegrating Polynomial Regression (GCPR) with flexible time trends to proxy time effects such as technological progress and/or environmental awareness. More specifically, a GCPR includes flexible powers of determin… Show more
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