Environmental Kuznets curve for local and global pollutants: application of GMM and random coefficient panel data models

Devleena Chakravarty and Sabuj Kumar Mandal ()
Additional contact information
Devleena Chakravarty: Indian Institute of Technology Madras
Sabuj Kumar Mandal: Indian Institute of Technology Madras

Journal of Social and Economic Development, 2019, vol. 21, issue 2, No 2, 212-233

Abstract: Abstract The objective of the study is to test the empirical validity of the environmental Kuznets curve hypothesis—an inverted U shape relationship between economic growth measured by GDP and environmental damage from the global pollutant, carbon dioxide (CO2) and the local pollutant, sulphur dioxide (SO2) emissions. We use a sample of 57 economies for CO2 and 63 economies for SO2 for the period 1992–2011. The study uses dynamic panel data model (GMM approach) to address the dynamism in the emission level and endogeneity of income, if any. We also use the random coefficient model (RCM) to test the validity of the assumption that all the economies in a sample travel the same growth path. Our results differ from the findings of the previous studies. Results of our dynamic panel model show evidence supporting EKC hypothesis in case of CO2 for both developing and developed economies. For the local pollutant, SO2 emission, a monotonically decreasing relationship with income is found in the context of developed economies, but insignificant impact of income is found for developing economies. Results pertaining to the RCM show that income and its square have insignificant impact on both local and global pollutant and therefore do not support the EKC hypothesis for both developing and developed economies.

Keywords: Environmental Kuznets curve hypothesis; Local and global pollutant; GMM; Random coefficient model (search for similar items in EconPapers)
JEL-codes: C33 Q55 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40847-019-00081-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jsecdv:v:21:y:2019:i:2:d:10.1007_s40847-019-00081-1

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40847

DOI: 10.1007/s40847-019-00081-1

Access Statistics for this article

Journal of Social and Economic Development is currently edited by M.G. Chandrakanth, D. Rajasekhar, Anand Inbanathan and S. Madheswaran

More articles in Journal of Social and Economic Development from Springer, Institute for Social and Economic Change
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().