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Environment and development: is there a Kuznets curve for CO2 emissions?

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Abstract:

This article re-examines the relationship between growth in per capita income and environmental degradation using econometric techniques appropriate for smooth transition regressions with panel data. This is a more intuitive and flexible methodology than the polynomial models widely used in the literature, and it can reconcile some of the mixed results found previously. The methodology is applied to carbon dioxide emissions from nonOECD countries over the period 1971 to 1997. Although there is no evidence of environmental Kuznets curve, we find two regimes, namely a low-income regime where emissions accelerate with economic growth and a middle to high-income regime associated with a deceleration in environmental degradation.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840601018994

Affiliations: 1: Department of Economics, Monash University, Victoria 3806, Australia 2: Department of Economics, University of Sydney, Sydney, Australia

Publication date: March 1, 2009

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