The Environmental Kuznets Curve: Implications of Non-Stationarity
Roger Perman and
David Stern ()
Working Papers in Ecological Economics from Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program
In this paper, we apply time series techniques for panel data to the environmental Kuznets curve (EKC) model. Within the literature that estimates emissions-income relations in the EKC context, little attention has been paid to the time series properties of the data and in particular to whether the variables could be integrated time series. We estimate the EKC for sulphur emissions using a panel data set for 74 countries over 30 years. Using individual unit root tests, we find that both sulphur emissions and GDP per capita are integrated variables in the majority of countries. This result is confirmed by panel unit root tests that find that the panel series are integrated. Individual cointegration tests show that EKC relations in most countries do not cointegrate. Results of a number of panel cointegration statistics are mixed. Even if there is cointegration in the panel many of the individual EKC functions are U shaped or monotonic in income. There is no single cointegrating vector common to all countries. The results show that the EKC may be a problematic concept, as simple global EKC models are misspecified.
New Economics Papers: this item is included in nep-agr, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to een.anu.edu.au:80 (No such host is known. )
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:anu:wpieep:9901
Access Statistics for this paper
More papers in Working Papers in Ecological Economics from Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program
Bibliographic data for series maintained by Jack Pezzey ( this e-mail address is bad, please contact ).