ZEW Discussion Papers
Economic Development and CO2 Emissions: A Nonparametric Panel Approach
Azomahou, Théophile, Phu Nguyen Van und Francois Laisney (2005), Economic Development and CO2 Emissions: A Nonparametric Panel Approach , ZEW Discussion Paper No. 05-56, Mannheim. Download
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. (1996), 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.
Keywords: Environmental Kuznets curve; panel data, poolability test, monotonicity test, specification test
