By Katsuhisa Uchiyama
This publication investigates the connection among environmental degradation and source of revenue, targeting carbon dioxide (CO2) emissions from all over the world, to discover the opportunity of sustainable improvement lower than worldwide warming. even if many researchers have tackled this challenge by means of estimating the Environmental Kuznets Curve (EKC), not like the method of sulfur dioxide emissions, there appears little consensus approximately no matter if EKC is shaped in regards to CO2 emissions. therefore, EKC is likely one of the such a lot debatable matters within the box of environmental economics. This ebook contributes 3 issues with educational rigor. First, an unbalanced panel dataset containing over one hundred fifty nations with the most recent CO2 emission facts among 1960 and 2010 is built. moment, in accordance with this dataset, the CO2 emission–income dating is analyzed utilizing strict econometric equipment similar to the dynamic panel version. 3rd, because it is usually mentioned that a few elements except source of revenue impact CO2 emission, numerous variables have been further to the estimation version to ascertain the results of adjustments of commercial constitution, power composition, and out of the country exchange on CO2 emission.
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Additional info for Environmental Kuznets Curve Hypothesis and Carbon Dioxide Emissions
Energy Policy, 30, 7–12. 31. Ordás Criado, C. (2008). Temporal and spatial homogeneity in air pollutants panel EKC estimations: Two nonparametric tests applied to Spanish provinces. Environmental and Resource Economics, 40, 265–283. 32. Panayotou, T. (2000). Economic growth and the environment, CID Working Paper No. 56. 33. , & Stern, D. I. (2003). Evidence from panel unit root and cointegration tests that the environmental Kuznets curve does not exist. Australian Journal of Agricultural and Resource Economics, 47, 325–347.
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1 Panel Unit Roots Tests Many empirical EKC analyses use panel data. Whenever panel data reflect a considerably long period of time-series data, it is necessary to examine stationarity. However, few studies to date have paid attention to data stationarity. When panel data are constructed with nonstationary variables, it is possible during analysis that uses the panel that spurious regressions will occur, as is the case with ordinary timeseries analysis. 3 As methods for unit root tests with panel data have been developed, some studies have introduced them to examine data stationarity, in advance of their 3 Standard individual unit root tests have less explanatory power than panel unit root tests, mainly because of the small number of time-series observations.