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Taming the SO2 and NOx emissions: evidence from a SUR model for the US

Michael Polemis () and Thanasis Stengos ()

Letters in Spatial and Resource Sciences, 2018, vol. 11, issue 2, 95-104

Abstract: Abstract We construct a Seemingly Unrelated Regression (SUR) model to investigate the link between local environmental pollution (sulfur dioxide-SO2 and nitrogen oxides-NOx emissions) and economic growth on a panel data set framework for the US over the period 1990–2012. The presence of different polynomials of GDP for each equation of SO2 and NOx respectively allows us to utilize a SUR model to estimate jointly the two equations in order to examine the total effect of environmental degradation. While we find evidence of a quartic relationship between SO2 emissions and economic development in a single equation framework this outcome does not seem to hold when we utilize a SUR model controlling for cross section dependence.

Keywords: Environmental Kuznets curve; SUR; Cross section dependence; Local pollutants (search for similar items in EconPapers)
JEL-codes: C33 Q56 Q43 (search for similar items in EconPapers)
Date: 2018
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