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Economic development and CO2 emissions: A nonparametric panel approach

We examine the empirical relation between CO2 emissions per capita and GDP per capita during the period 1960–1996, using a panel of 100 countries. Relying on the nonparametric poolability test of Baltagi et al. [Baltagi, B.H., Hidalgo, J., Li, Q., 1996. A nonparametric test for poolability using pan...

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Bibliographic Details
Published in:Journal of public economics 2006-08, Vol.90 (6), p.1347-1363
Main Authors: Nguyen Van, Phu, Azomahou, Théophile T, Laisney, Francois
Format: Article
Language:English
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Summary:We examine the empirical relation between CO2 emissions per capita and GDP per capita during the period 1960–1996, using a panel of 100 countries. Relying on the nonparametric poolability test of Baltagi et al. [Baltagi, B.H., Hidalgo, J., Li, Q., 1996. A nonparametric test for poolability using panel data, Journal of Econometrics 75, 345–367], we find evidence of structural stability of the relationship. We then specify a nonparametric panel data model with country-specific effects. Estimation results show that this relationship is upward sloping. Nonparametric specification tests do not reject monotonicity but do reject the polynomial functional form which leads to the environmental Kuznets curve in several studies.
ISSN:0047-2727
1879-2316
DOI:10.1016/j.jpubeco.2005.09.005