Which Industry is Greener? Empirical Study for Nine Industries in OECD Countries

Hidemichi Fujii and Shunsuke Managi

MPRA Paper from University Library of Munich, Germany

Abstract: This study analyzed the relationship between CO2 emissions of different industries and economic growth in OECD countries from 1970 to 2005. We tested an environmental Kuznets curve (EKC) hypothesis and found that total CO2 emissions from nine industries show an N-shaped trend instead of an inverted U or monotonic increasing trend with increasing income. The EKC hypothesis for sector-level CO2 emissions was supported in (1) paper, pulp and printing industry, (2) wood and wood products industry, and (3) construction industry. We also found that emissions from coal and oil increase with economic growth in steel and construction industries. Meanwhile, non-metallic minerals, machinery, and transport equipment industries tend to have increased emissions from oil and electricity with increased economic development. Finally, the EKC turning point and the relationship between GDP per capita and sectoral CO2 emissions differ among industries according to the fuel type used. Therefore, the environmental policies for CO2 reduction need to consider these differences in industrial characteristics.

Keywords: environmental Kuznets curve; CO2 emission; industrial sector; OECD countries (search for similar items in EconPapers)
JEL-codes: Q40 Q54 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-ene and nep-env
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Related works:
Journal Article: Which industry is greener? An empirical study of nine industries in OECD countries (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:44229

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