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Polluting Emissions and GDP: Decoupling Evidence from Brazilian States

Joao Jalles ()

No 2019/0104, Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa

Abstract: We provide a comprehensive analysis of the relationship between greenhouse gas (GHG) emissions and GDP in Brazil using both aggregate and state-level data. The trend or Kuznets elasticity is about 0.8 for Brazil, higher than that in advanced countries but below that of major emerging markets. The elasticity is somewhat higher for consumption-based emissions than for production-based emissions, providing evidence against the “pollution haven” hypothesis. Additional evidence comes from state-level data analysis where one can observe a great deal of heterogeneity but also some hope as far as decoupling is concerned. In addition to the trend relationship between emissions and output, we find that there does not seem to exist a cyclical relationship holding in Brazil at the aggregate level (despite having become more procyclical over time), but it does exist in a few states.

Keywords: Green House Gas; Cycle; Environmental Kuznets Curve; Brazil; Regional analysis; Detrending; Filtering (search for similar items in EconPapers)
JEL-codes: E32 O44 Q43 Q54 Q56 (search for similar items in EconPapers)
Date: 2019-11
New Economics Papers: this item is included in nep-ene, nep-env, nep-mac and nep-res
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Persistent link: https://EconPapers.repec.org/RePEc:ise:remwps:wp01042019

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