Environmental Kuznets curve and domestic material consumption indicator: an European analysis

Sabrina Auci () and Donatella Vignani

MPRA Paper from University Library of Munich, Germany

Abstract: In our paper, we investigate the relation between per capita Domestic Material Consumption indicator (DMC) assumed as a potential environmental degradation indicator and per capita income. DMC is a physical measure developed by official statistics in recent years and derived from a Satellite Accounts System to evaluate the material dimension of human development and the environmental consequences of economic growth. While the literature has focused its attention on pollution and its measures, we consider as environmental degradation the impact of production and consumption on natural resources extracted from the global environment for the functioning of social-economic systems. In particular, we want to estimate if there exists a relationship similar to the Environmental Kuznets Curve (EKC) between per capita DMC Indicator and per capita GDP controlling for final Consumption expenditure, Openness index trade and national Research and Development expenditure by using a cross–European panel of countries over the period 2000-2010. Our results support the EKC hypothesis. However, the value of income at the turning point is high and probably there is a delink between DMC indicator and GDP as in the case of CO2 emissions and income literature.

Keywords: Natural Resource Use; Environmental degradation; Environmental Kuznets Curve; Domestic Material Consumption Indicator; Economy-wide Material Flows Accounts (Environmental Satellite Accounting); GDP; cross-European panel of countries (search for similar items in EconPapers)
JEL-codes: Q53 Q56 (search for similar items in EconPapers)
Date: 2013-07-05
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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