The effect of urbanization on CO2 emissions in emerging economies

Perry Sadorsky

Energy Economics, 2014, vol. 41, issue C, 147-153

Abstract: The theories of ecological modernization and urban environmental transition both recognize that urbanization can have positive and negative impacts on the natural environment with the net effect being hard to determine a priori. This study uses recently developed panel regression techniques that allow for heterogeneous slope coefficients and cross-section dependence to model the impact that urbanization has on CO2 emissions for a panel of emerging economies. The estimated contemporaneous coefficients on the energy intensity and affluence variables are positive, statistically significant and fairly similar across different estimation techniques. By comparison, the estimated contemporaneous coefficient on the urbanization variable is sensitive to the estimation technique. In most specifications, the estimated coefficient on the urbanization variable is positive but statistically insignificant. The implications of these results for sustainable development policy are discussed.

Keywords: CO2 emissions; Emerging economies; Energy intensity; Urbanization (search for similar items in EconPapers)
JEL-codes: O14 Q43 R11 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (250)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:41:y:2014:i:c:p:147-153

DOI: 10.1016/j.eneco.2013.11.007

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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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