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Environmental convergence and environmental Kuznets curve: A unified empirical framework

Laté Ayao Lawson, Roberto Martino and Phu Nguyen-Van

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Abstract: Existing studies disjointly addressed the environmental convergence and environmental Kuznets curve hypotheses, though these research lines are theoretically interconnected. This paper proposes a unified empirical methodology to simultaneously investigate both hypotheses, relying on a semiparametric dynamic panel data model that accounts for regressor endogeneity. The approach, when applied to CO2 emissions in 106 countries, suggests that there is no global level evidence supporting the environmental Kuznets hypothesis, while a convergence process is taking place. Our results imply that current international agreements have not been sufficiently binding to globally curb CO2 emissions, especially in high-income countries, as aimed by Sustainable Development Goals.

Keywords: CO2 emissions; Environmental Kuznets curve; Environmental convergence; Regressor endogeneity; Semiparametric panel data model (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-agr, nep-eff, nep-ene, nep-env and nep-isf
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Published in Ecological Modelling, 2020, 437, 32 p. ⟨10.1016/j.ecolmodel.2020.109289⟩

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DOI: 10.1016/j.ecolmodel.2020.109289

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