Are there Environmental Kuznets Curves for US State-Level CO2 Emissions?

Nicholas Apergis (), Christina Christou () and Rangan Gupta
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Christina Christou: Department of Banking and Financial Management, University of Piraeus, Greece

No 201474, Working Papers from University of Pretoria, Department of Economics

Abstract: The paper assesses the existence of the Environmental Kuznets Curve (EKC) hypothesis, across 48 contiguous states of the US, using recent advances in panel data techniques, given the existence of cross-sectional dependence, which in turn, makes reliance on time-series evidence biased. The Common Correlated Effects (CCE) estimation procedure of Pesaran, (2006), allows us to obtain state-level results, while staying in a panel set-up to accommodate for cross-sectional dependence, in the presence of cointegration in the relationship between emissions and a measure of output, and its squared value – a function that captures the inverted u-shaped relationship postulated by the EKC. Our results show that, the EKC hypothesis holds for only 10 of the 48 states, and hence implies that, the remaining 38 states should reform a number of their environmental regulatory policies to prevent environmental degradation, since otherwise, lower levels of emissions would only be possible at the expense of production.

Keywords: CO2 Emissions; Environmental Kuznets Curve; US States (search for similar items in EconPapers)
JEL-codes: C33 Q53 Q56 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2014-11
New Economics Papers: this item is included in nep-agr, nep-ene, nep-env and nep-res
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Citations: View citations in EconPapers (3)

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Journal Article: Are there Environmental Kuznets Curves for US state-level CO2 emissions? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:201474

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