EconPapers    
Economics at your fingertips  
 

Revisiting Environmental Kuznets Curves through the energy Price lenses

Miguel Rodriguez () and Yolanda Pena-Boquete ()

No 1401, Working Papers from Universidade de Vigo, Departamento de Economía Aplicada

Abstract: The goal of this paper is to provide new insights to make clear cut on the ambiguous evidence in favour of the Environmental Kuznets Curve (EKC) hypothesis. We contribute with an original explanation to dismiss the EKC based on relative energy prices. For the first time in the empirical literature, the econometric analysis includes the prices for coal, oil products and natural gas. We may conclude that there is evidence for a decoupling process between GDP and CO2 but without reaching any turning point on that relationship. Accordingly, the presence of relative energy price changes in the econometric specification confirms a monotonic and positive relationship between CO2 and GDP. Otherwise, we will eventually end up with distorted empirical evidence for EKC in our database, as long as we neglect energy substitution effects from price changes. The policy implications are straightforward: any international climate change agreement that eventually includes restrictions on developing countries might abate their legitimate ambitions for further economic development

Pages: 20 pages
Date: 2014-04
New Economics Papers: this item is included in nep-ene and nep-env
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://webx06.webs4.uvigo.es/wp-content/uploads/2019/05/wp1401.pdf First version, 2014 (application/pdf)

Related works:
Journal Article: Revisiting Environmental Kuznets Curves through the energy price lens (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vig:wpaper:1401

Access Statistics for this paper

More papers in Working Papers from Universidade de Vigo, Departamento de Economía Aplicada Contact information at EDIRC.
Bibliographic data for series maintained by Departamento de Economía Aplicada ().

 
Page updated 2020-11-26
Handle: RePEc:vig:wpaper:1401