Carbon Kuznets curve: a dynamic empirical approach for a panel data

Roxana Pincheira, Felipe Zuniga and Pablo Neudörfer ()

Accounting and Finance, 2021, vol. 61, issue 4, 5523-5541

Abstract: The Environmental Kuznets curve (EKC) relationship is defined as an inverted‐U association between income and pollution. However, it remains a hypothesis since the empirical evidence is mixed. A key limitation in previous studies is that they ignore the endogenous relationship between income and pollution. To address this issue, a dynamic system generalised method of moments (GMM) was utilised with a large sample of countries and a long time series. After controlling for country‐specific fixed effects, the dynamic feedback between income and environmental damage, and several controls, we find support for the EKC hypothesis in our sample.

Date: 2021
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https://doi.org/10.1111/acfi.12766

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