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Evidence from panel unit root and cointegration tests that the Environmental Kuznets Curve does not exist AgEcon
Perman, Roger; Stern, David I..
The Environmental Kuznets Curve (EKC) hypothesis – an inverted U-shape relation between various indicators of environmental degradation and income per capita – has become one of the ‘stylised facts’ of environmental and resource economics. This is despite considerable criticism on both theoretical and empirical grounds. Cointegration analysis can be used to test the validity of such stylised facts when the data involved contain stochastic trends. In the present paper, we use cointegration analysis to test the EKC hypothesis using a panel dataset of sulfur emissions and GDP data for 74 countries over a span of 31 years. We find that the data is stochastically trending in the time-series dimension. Given this, and interpreting the EKC as a long run...
Tipo: Journal Article Palavras-chave: Environmental Economics and Policy.
Ano: 2003 URL: http://purl.umn.edu/116988
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