The Environmental Kuznets Curve: A Semiparametric Approachwith Cross-Sectional Dependence
This paper proposes a new approach to examine the relationship between CO2 emissionsand economic developing. In particular, we propose to test the Environmental Kuznets Curve(EKC) hypothesis for a panel of24OECD countries and32non-OECD countries by developinga more flexible estimation technique whic...
| Autores: | , |
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2020 |
| País: | España |
| Institución: | Universidad de Cantabria (UC) |
| Repositorio: | UCrea Repositorio Abierto de la Universidad de Cantabria |
| Idioma: | inglés |
| OAI Identifier: | oai:repositorio.unican.es:10902/20282 |
| Acceso en línea: | http://hdl.handle.net/10902/20282 |
| Access Level: | acceso abierto |
| Palabra clave: | Environmental Kuznets curve CO2 emissions Cross-sectional dependence Semi-parametric regression Panel data |
| Sumario: | This paper proposes a new approach to examine the relationship between CO2 emissionsand economic developing. In particular, we propose to test the Environmental Kuznets Curve(EKC) hypothesis for a panel of24OECD countries and32non-OECD countries by developinga more flexible estimation technique which enables to account for functional form misspecification, cross-sectional dependence, and heterogeneous relationships among variables, simultaneously. We propose a new nonparametric estimator that extends the well-known Common CorrelatedEffect (CCE) approach from a fully parametric framework to a semiparametric panel data model. Our results corroborates that the nature and validity of the income-pollution relationship basedon the EKC hypothesis depends on the model assumptions about the functional form specification. For all the countries analyzed, the proposed semiparametric estimator leads to non-monotonicallyincreasing or decreasing relationships for CO2emissions, depending on the level of economicdevelopment of the country. |
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