Skip to main content

Estimating country-specific environmental Kuznets curves from panel data: a Bayesian shrinkage approach

Buy Article:

$55.00 plus tax (Refund Policy)


Designing an efficient global climate policy turns out to be a difficult yet crucial task since there are noteworthy cross-country differences in energy and carbon intensities. In this article, the environmental Kuznets curve (EKC) hypothesis is tested for carbon dioxide (CO2) emissions, and as a modelling technique, the iterative Bayesian shrinkage procedure is employed to handle the cross-country differences. The results suggest that first the EKC hypothesis is rejected for 47 out of the 51 countries considered when the heterogeneity in countries’ energy efficiencies and cross-country differences in the CO2 emissions trajectories are accounted for; second, a classification of the results with respect to the development levels of the countries concerned reveals that the emergence of an overall inverted U-shaped curve is due to the fact that in high-income countries increase in gross domestic product (GDP) decreases emissions, while in low-income countries emissions and GDP are positively correlated.

Keywords: Bayesian shrinkage estimator; O13; O44; Q56; environmental Kuznets curve; heterogeneity

Document Type: Research Article


Affiliations: 1: Nice Sophia Antipolis University, Nice, France 2: EconomiX – CNRS, University of Paris Ouest, Nanterre, France

Publication date: 2014-05-03

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more