Carbon Kuznets curve: a dynamic empirical approach for a panel data. (22nd February 2021)

• Record Type: Journal Article
• Authors: Pincheira, Roxana; Zuniga, Felipe; Neudorfer, Pablo
• Is Part Of: Accounting and finance. Volume 61:Number 4(2021)
• Page Start: 5523
• Page End: 5541
• Publication Date: 2021-02-22
• Subjects: Environmental Kuznets curve -- CO2 concentrations -- Climate change -- Dynamic system GMM; Accounting -- Periodicals; Finance -- Periodicals; 657.05
• DOI: 10.1111/acfi.12766
• Languages: English
• ISSNs: 0810-5391

Abstract

Abstract: The Environmental Kuznets curve (EKC) relationship is defined as an inverted‐U association between income and pollution. However, it remains a hypothesis since the empirical evidence is mixed. A key limitation in previous studies is that they ignore the endogenous relationship between income and pollution. To address this issue, a dynamic system generalised method of moments (GMM) was utilised with a large sample of countries and a long time series. After controlling for country‐specific fixed effects, the dynamic feedback between income and environmental damage, and several controls, we find support for the EKC hypothesis in our sample.