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A Panel Estimation of the Relationship between Income, Electric Power Consumption and CO2 Emissions

A Panel Estimation of the Relationship between Income, Electric Power Consumption and CO2 Emissions
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Year:    2013

Author:    Bella, Giovanni, Massidda, Carla, Etzo, Ivan

Applied Economics Quarterly, Vol. 59 (2013), Iss. 2 : pp. 149–166

Abstract

This paper aims to make a contribution to the still questioned bell-shaped relationship between carbon dioxide emissions and economic growth, which is commonly known in the literature as the Environmental Kuznets Curve hypothesis. In particular, it provides a panel analysis of a group of 82 countries, including 26 OECD and 56 non-OECD countries, over the period 1980–2009. We specify the estimated model by taking into account the role of electric power consumption, and compare the performance of alternative panel estimators for a quadratic and cubic specification of the empirical model. Our findings seem to favor the EKC relationship for the entire sample. This outcome is fully confirmed for the OECD group of countries, whereas for the non-OECD sub-sample, a monotonically increasing relationship between CO2 and GDP seems to hold.

JEL Classification: C33, Q43, Q54

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.3790/aeq.59.2.149

Applied Economics Quarterly, Vol. 59 (2013), Iss. 2 : pp. 149–166

Published online:    2013-06

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    18

Author Details

Bella, Giovanni

Massidda, Carla

Etzo, Ivan

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