A cointegrating polynomial regression analysis of the material kuznets curve hypothesis. (August 2018)

• Record Type: Journal Article
• Authors: Grabarczyk, Peter; Wagner, Martin; Frondel, Manuel; Sommer, Stephan
• Is Part Of: Resources policy. Volume 57(2018)
• Page Start: 236
• Page End: 245
• Publication Date: 2018-08
• Subjects: C12 -- C13 -- C22 -- Q32; Intensity of use -- Material Kuznets curve -- Metals -- Nonlinear cointegration; Mines and mineral resources -- Periodicals; Ressources minérales -- Périodiques; Ressources naturelles -- Gestion -- Périodiques; Environnement -- Politique gouvernementale -- Périodiques; 333.8
• DOI: 10.1016/j.resourpol.2018.03.009
• Languages: English
• ISSNs: 0301-4207

Abstract

Abstract: This paper investigates the Material Kuznets Curve (MKC) hypothesis, postulating an inverted U-shaped relationship between a country's level of economic development and its intensity of material use, by means of nonlinear cointegration analysis. We use consumption data for aluminum, lead and zinc for eight OECD countries spanning from 1900 to 2006 and employ the tests and estimation techniques for nonlinear cointegration developed by Saikkonen and Choi (2004), Wagner (2013) as well as Wagner and Hong (2016). We find evidence for the prevalence of a cointegrating quadratic MKC for about half of the country-metal pairs. Abstract : Highlights: The Material Kuznets Curve hypothesis is investigated by means of nonlinear cointegration analysis. The presence of log GDP per capita as well as powers renders widely used methods for linear cointegration inappropriate. Evidence for the prevalence of a cointegrating Material Kuznets Curve for about half of the OECD countries considered.