Decomposition of the environmental Kuznets curve: scale, technique, and composition effects

Tsurumi, Tetsuya; Managi, Shunsuke

doi:10.1007/s10018-009-0159-4

Cited by 149 publications

(109 citation statements)

References 38 publications

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“…The results show that 1% increase in composition effect (capital-labor ratio) leads to decrease CO 2 emissions by 0.57% keeping all else same. This finding is consistent with Tsurumi and Managi (2010), but contrasting to Cole (2006) who reported that composition effect is positively linked with energy intensity and leads CO 2 emissions. This notion further enumerates that change in the composition of production line (i.e.…”

Section: Ectsupporting

confidence: 87%

Decomposing the trade-environment nexus for Malaysia: what do the technique, scale, composition, and comparative advantage effect indicate?

Ling

Ahmed

Muhamad

et al. 2015

Environ Sci Pollut Res

131

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This paper investigates the impact of trade openness on CO 2 emissions using time series data over the period of 1970QI-2011QIV for Malaysia. We disintegrate the trade effect into scale, technique, composition and comparative advantage effects to check the environmental consequence of trade at four different transition points. To achieve the purpose, we have employed ADF and PP unit root tests in order to examine the stationary properties of the variables. Later, the long-run association among the variables is examined by applying ARDL bounds testing approach to cointegration. Our results confirm the presence of cointegration. Further, we find that scale effect has positive and technique effect has negative impact on CO 2 emissions after threshold income level and form inverted-U shaped relationship -hence validates the environmental Kuznets curve hypothesis. Energy consumption adds in CO 2 emissions. Trade openness and composite effect improve environmental quality by lowering CO 2 emissions. The comparative advantage effect increases CO 2 emissions and impairs environmental quality. The results provide the innovative approach to see the impact of trade openness in four subdimensions of trade liberalization. Hence, this study attributes more comprehensive policy tool for trade economists to better design environmentally sustainable trade rules and agreements.

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Section: Ectsupporting

confidence: 87%

Decomposing the trade-environment nexus for Malaysia: what do the technique, scale, composition, and comparative advantage effect indicate?

Ling

Ahmed

Muhamad

et al. 2015

Environ Sci Pollut Res

131

View full text Add to dashboard Cite

show abstract

“…Crosscountry EKC analysis tends to show the close relationship between environmental emissions and gross domestic product (GDP) or related policy variables (Farzin and Bond, 2006;Wagner, 2008;Galeotti et al, 2009;Tsurumi and Managi, 2010). 1 The EKC hypothesis has been tested in many countries using various pollutant data.…”

Section: Introductionmentioning

confidence: 99%

“…These factors are (1) economic scale, (2) technology level, and (3) industrial composition effects. The industrial composition effect is especially difficult to interpret with respect to the EKC (Tsurumi and Managi, 2010).…”

Section: Introductionmentioning

confidence: 99%

Economic development and multiple air pollutant emissions from the industrial sector

Fujii

Managi

2015

Environ Sci Pollut Res

Self Cite

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This study analyzed the relationship between economic growth and emissions of eight environmental air pollutants (CO2, CH4, N2O, NOx, SOx, CO, NMVOC, and NH3) in 39 countries from 1995 to 2009. We tested an environmental Kuznets curve (EKC) hypothesis for 16 individual industry sectors and for the total industrial sector. The results clarified that at least ten individual industries do not have an EKC relationship in eight air pollutants even though this relationship was observed in the country and total industrial sector level data. We found that the key industries that dictated the EKC relationship in the country and the total industrial sector are existed in CO2, N2O, CO, and NMVOC emissions. Finally, the EKC turning point and the relationship between economic development and trends of air pollutant emissions differ among industries according to the pollution substances. These results suggest inducing new environmental policy design such as the sectoral crediting mechanism, which focuses on the industrial characteristics of emissions.

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“…Furthermore, it is also necessary to examine the relationship between income or economic growth and environmental quality (Stern et al, 1996;Harbaugh et al, 2002;Rezek and Rogers, 2008); and decompose the determinants of environmental performance or consider whether environmental policy could be more stringent when the technique effect could not sufficiently reduce emissions (Panayotou, 1997;Tsurumi and Managi, 2010).…”

Section: Reason Discussionmentioning

confidence: 99%

Measurement of production efficiency and environmental efficiency in China’s province-level: a by-production approach

Zhao

2016

Environ Econ Policy Stud

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This thesis employs the by-production approach to modelling pollution generating technologies to investigate production and environmental efficiencies, design consumptionincreasing and emission non-increasing input policy reforms, and derive a measure of marginal abatement costs in the case of China.The second chapter introduces by-production approach to modelling the pollution generating technologies. It decomposes a general pollution generating technology as classical intended production technology and nature's residual-generation mechanism. In this chapter, some production and environmental efficiency indexes will be extended and applied under by-production approach to study China's regional technical efficiency incorporated emission generation. According to our estimation results, some reasons analysis and policy implementation suggestions are given.The third chapter co-authored with Professor Sushama Murty proposes a model that gives a key role to the energy sector, and gives a theoretical characterisation for the existence of feasible, consumption-increasing, and emission-non increasing input policy reforms at the status-quo of a national or a sub-national economic unit. A methodology is developed to empirically test for the existence of such efficiency-improving reforms.Formulae to compute the optimal efficiency-increasing reform and a measure of marginal abatement cost (MAC) based on local policy reforms using data available at the status-quo are derived.The fourth chapter co-authored with Professor Sushama Murty implements the methodology developed in the third chapter to test the existence and to study the structure of efficiency-improving reforms using data on thirty provinces in China. A new class of limitational variable elasticity of substitution (LVES) production functions for specifying technologies of the energy-using and energy-generating sectors is introduced and two such production functions are estimated along with the conventional Cobb Douglas and 3 CES production functions. MACs and the optimal efficiency-improving reforms are found to be sensitive to the choice of the production functions employed. There is a huge variation in MACs across provinces. The optimal efficiency-improving reform encourages a substitution from coal-fired electricity generation to gas-fired electricity and renewable energy generation for all provinces.The fifth chapter reviews China's regional variations in electricity generation, primary energy usage, and forest cover. To better understand the China's carbon emission control policies, we also briefly introduce the carbon emission scheme implementation. Based on these information, we incorporate the efficiency-improving reforms and MACs estimated in the fourth chapter to analyse the direction of input resources reallocation and give further recommendations for each province.4

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Decomposition of the environmental Kuznets curve: scale, technique, and composition effects

Abstract: Economic growth, Environmental Kuznets curve, Scale effect, Technique effect, Composition effect,

Cited by 149 publications

References 38 publications

Decomposing the trade-environment nexus for Malaysia: what do the technique, scale, composition, and comparative advantage effect indicate?

Decomposing the trade-environment nexus for Malaysia: what do the technique, scale, composition, and comparative advantage effect indicate?

Economic development and multiple air pollutant emissions from the industrial sector

Measurement of production efficiency and environmental efficiency in China’s province-level: a by-production approach

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