FEEM working papers "Note di lavoro" series
2001 .063

A Note on Testing for Environmental Kuznets Curves with Panel Data


Authors: Herman R.J. Vollebergh, Elbert Dijkgraaf
Series: Climate Change and Sustainable Development
Editor: Carlo Carraro
Type: Journal
Keywords: Environmental Kuznets Curves,panel data,heterogeneity
JEL n.: C33,O50,Q40
JEL: Environmental and Resource Economics
Pages: 32, 2, 229-239
Date: 2005

Abstract

This paper casts doubt on empirical results based on panel estimations of an "inverted-U" relationship between per capita GDP and pollution. Using a new data set for OECD countries on carbon dioxide emissions for the period 1960-1997, we find that the crucial assumption of homogeneity across countries is problematic. Decisively rejected are model specifications that feature even weaker homogeneity assumptions than are commonly used. Furthermore, our results challenge the existence of an overall Environmental Kuznets Curve for carbon dioxide emissions.
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