Kuznets Curve (Kuznet + curve)

Distribution by Scientific Domains

Selected Abstracts

Evidence from panel unit root and cointegration tests that the Environmental Kuznets Curve does not exist

Roger Perman
The Environmental Kuznets Curve (EKC) hypothesis , an inverted U-shape relation between various indicators of environmental degradation and income per capita , has become one of the ,stylised facts' of environmental and resource economics. This is despite considerable criticism on both theoretical and empirical grounds. Cointegration analysis can be used to test the validity of such stylised facts when the data involved contain stochastic trends. In the present paper, we use cointegration analysis to test the EKC hypothesis using a panel dataset of sulfur emissions and GDP data for 74 countries over a span of 31 years. We find that the data is stochastically trending in the time-series dimension. Given this, and interpreting the EKC as a long run equilibrium relationship, support for the hypothesis requires that an appropriate model cointegrates and that sulfur emissions are a concave function of income. Individual and panel cointegration tests cast doubt on the general applicability of the hypothesised relationship. Even when we find cointegration, many of the relationships for individual countries are not concave. The results show that the EKC is a problematic concept, at least in the case of sulfur emissions. [source]

Transition and sustainability: empirical analysis of environmental Kuznets curve for water pollution in 25 countries in Central and Eastern Europe and the Commonwealth of Independent States

Sandra O. Archibald
Abstract This paper examines the effects of political, structural and economic changes on environmental quality in 25 Central and East European countries (CEECs) and the countries of the Commonwealth of Independent States (CIS) using selected water pollution indicators and by testing the environmental Kuznets curve (EKC). Despite substantial research on the transition effects from centrally planned economies and totalitarian political systems to democracy and free market economies, the literature is limited with respect to the short- and long-term environmental impacts. Considering the institutional and structural changes in these economies, rising per capita income and increased trade and investment openness, these countries can be characterized as early, late and non-liberalizers with respect to the start and continuation of liberalization processes , a critical element of the systemic transformation in the CEECs. While trends in selected economic and social indicators (based on the OECD pressure,state,response framework) show that early liberalizers enjoyed positive gains relative to late liberalizers, the selected environmental indicators do not indicate consistent trends with regard to surface water quality. Among early and late liberalizers, nitrate, orthophosphate and ammonium concentrations decline and converge over time. Phosphorus concentrations initially dropped but then increased again for both groups of countries. Using the indicator of biological oxygen demand (BOD) as the dependent variable and a set of structural and economic measures as the independent variables, our econometric regression model provides some evidence for the EKC hypothesis and estimates the per capita income turning point for industrial BOD effluents to be approximately 3800,5000 USD. Copyright 2009 John Wiley & Sons, Ltd and ERP Environment. [source]


Audrey Siew Kim LIM
O15 This paper develops a Mincerian measure of human capital distribution and applies it to evaluate national and global human capital inequality and compare them with education inequality measures. It is shown that using education inequality as a proxy of human capital inequality is problematic due to the nonmonotonic relationship between them. We find that the inconsistent evidence on education and human capital Kuznets curves in the literature is due to the use of different inequality measures. In particular, human capital Kuznets curves are evident when relative inequality measures are used, whereas education Kuznets curves are found when absolute inequality measures are used. It is also observed that while global education inequality has been declining over the past four decades, global human capital inequality remains largely steady, as the decrease in between-country human capital inequality is largely balanced by the increase in within-country human capital inequality. [source]