Endogeneity and nonlinearity in the environmental Kuznets curve: A control function approach
This study investigates the existence and shape of an environmental Kuznets curve (EKC) across 16 developed countries and 58 developing countries during the period 1995-2010. The basic model of the EKC is a polynomial equation of real GDP per capita. The EKC model estimated for CO2 emission per capi...
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| Format: | Article |
| Language: | English |
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Economists' Association of Vojvodina
2021-01-01
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| Series: | Panoeconomicus |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/1452-595X/2021/1452-595X1900012C.pdf |
| _version_ | 1818741662651777024 |
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| author | Caglayan-Akay Ebru Kangalli-Uyar Sinem Guler |
| author_facet | Caglayan-Akay Ebru Kangalli-Uyar Sinem Guler |
| author_sort | Caglayan-Akay Ebru |
| collection | DOAJ |
| description | This study investigates the existence and shape of an environmental Kuznets curve (EKC) across 16 developed countries and 58 developing countries during the period 1995-2010. The basic model of the EKC is a polynomial equation of real GDP per capita. The EKC model estimated for CO2 emission per capita was extended by using control variables, such as trade, urban population, fossil fuel consumption, and service sector. Based on the nonparametric test of poolability of Badi H. Baltagi, Javier Hidalgo, and Qi Li (1996), the relationship was found to have structural stability. A nonparametric pooled regression model was constructed, which allowed functional form flexibility and considered the endogeneity problem often emphasized in the EKC literature. The estimation results show the nonexistence of an EKC for both groups. The study also indicates the existence of nonlinearity and heterogeneity in the relationships between CO2 emission and the control variables across both groups. |
| first_indexed | 2024-12-18T02:00:11Z |
| format | Article |
| id | doaj.art-275d7cc52a224cffa5cb1e3448b911de |
| institution | Directory Open Access Journal |
| issn | 1452-595X 2217-2386 |
| language | English |
| last_indexed | 2024-12-18T02:00:11Z |
| publishDate | 2021-01-01 |
| publisher | Economists' Association of Vojvodina |
| record_format | Article |
| series | Panoeconomicus |
| spelling | doaj.art-275d7cc52a224cffa5cb1e3448b911de2022-12-21T21:24:46ZengEconomists' Association of VojvodinaPanoeconomicus1452-595X2217-23862021-01-0168455557610.2298/PAN171009012C1452-595X1900012CEndogeneity and nonlinearity in the environmental Kuznets curve: A control function approachCaglayan-Akay Ebru0Kangalli-Uyar Sinem Guler1Marmara University, Faculty of Economics, Department of Econometrics, Istanbul, TurkeyPamukkale University, Faculty of Economics and Administrative Sciences, Department of Econometrics, Denizli, TurkeyThis study investigates the existence and shape of an environmental Kuznets curve (EKC) across 16 developed countries and 58 developing countries during the period 1995-2010. The basic model of the EKC is a polynomial equation of real GDP per capita. The EKC model estimated for CO2 emission per capita was extended by using control variables, such as trade, urban population, fossil fuel consumption, and service sector. Based on the nonparametric test of poolability of Badi H. Baltagi, Javier Hidalgo, and Qi Li (1996), the relationship was found to have structural stability. A nonparametric pooled regression model was constructed, which allowed functional form flexibility and considered the endogeneity problem often emphasized in the EKC literature. The estimation results show the nonexistence of an EKC for both groups. The study also indicates the existence of nonlinearity and heterogeneity in the relationships between CO2 emission and the control variables across both groups.http://www.doiserbia.nb.rs/img/doi/1452-595X/2021/1452-595X1900012C.pdfenvironmental kuznets curveco2 emissionsnonparametric modelsendogeneitycontrol function approach |
| spellingShingle | Caglayan-Akay Ebru Kangalli-Uyar Sinem Guler Endogeneity and nonlinearity in the environmental Kuznets curve: A control function approach Panoeconomicus environmental kuznets curve co2 emissions nonparametric models endogeneity control function approach |
| title | Endogeneity and nonlinearity in the environmental Kuznets curve: A control function approach |
| title_full | Endogeneity and nonlinearity in the environmental Kuznets curve: A control function approach |
| title_fullStr | Endogeneity and nonlinearity in the environmental Kuznets curve: A control function approach |
| title_full_unstemmed | Endogeneity and nonlinearity in the environmental Kuznets curve: A control function approach |
| title_short | Endogeneity and nonlinearity in the environmental Kuznets curve: A control function approach |
| title_sort | endogeneity and nonlinearity in the environmental kuznets curve a control function approach |
| topic | environmental kuznets curve co2 emissions nonparametric models endogeneity control function approach |
| url | http://www.doiserbia.nb.rs/img/doi/1452-595X/2021/1452-595X1900012C.pdf |
| work_keys_str_mv | AT caglayanakayebru endogeneityandnonlinearityintheenvironmentalkuznetscurveacontrolfunctionapproach AT kangalliuyarsinemguler endogeneityandnonlinearityintheenvironmentalkuznetscurveacontrolfunctionapproach |