This study revisits the environmental Kuznets curve (EKC) hypothesis in order to find the inverted-U relationship between CO2 emissions and economic growth. It uses a comprehensive cross-national panel dataset containing 90 middle-income countries between 1981 and 2010. This study confirms that a quadratic relationship indeed exists. The turning points are determined at approximately US$8,300 and 9,100, which are consistent in all six models. Additionally, by classifying countries into different income levels or regional groups, this study attempts to find any group-wise discrepancies. Finally, individual countries are examined in order to find the gap between the actual data and their fitted values, which indicates that special attention is required in Eastern Europe and Central Asian countries in order to reduce CO2 emission problems.
ArrowKBolinBCostanzaRDasguptaPFolkeCHollingCSJanssonBOLevinSMalerKGPerringsC (1996) Economic growth, carrying capacity, and the environment. Ecological Applications6(1):13–15.
2.
AslanidisNIranzoS (2009) Environment and development: Is there a Kuznets curve for CO2 emissions?Applied Economics41(6): 803–810.
3.
AzomahouTLaisneyFPhuNV (2006) Economic development and CO2 emissions: A nonparametric panel approach. Journal of Public Economics90(6): 1347–1363.
4.
ColeMA (2004) Trade, the pollution haven hypothesis and the environmental Kuznets curve: Examining the linkages. Ecological Economics48(1): 71–81.
5.
ColeMARaynerAJBatesJM (1997) The environmental Kuznets curve: An empirical analysis. Environment and Development Economics2(4): 401–416.
6.
DalyHE (1977) Steady state economics. The economics of biophysical equilibrium and moral growth. San Francisco, CA: WH Freeman.
7.
De BruynSMvan den Bergh JeroenCJMOpschoorJB (1998) Economic growth and emissions: Reconsidering the empirical basis of environmental Kuznets curves. Ecological Economics25(2): 161–175.
8.
DijkgraafEVolleberghHR (2005) A test for parameter homogeneity in CO2 panel EKC estimations. Environmental and Resource Economics32(2): 229–239.
9.
FayMEbingerJBlockRI (2010) Adapting to Climate Change in Eastern Europe and Central Asia. World Bank.
10.
GaleottiMLanzaA (1999) Richer and cleaner? A study on carbon dioxide emissions in developing countries. Energy Policy27(10): 565–573.
11.
GaleottiMLanzaAPauliF (2006) Reassessing the environmental Kuznets curve for CO2 emissions: A robustness exercise. Ecological Economics57(1): 152–163.
12.
GaleottiMLanzaAPauliF (2009) On the robustness of robustness checks of the environmental Kuznets curve hypothesis. Environmental and Resource Economics42(4): 551–574.
13.
GleditschNPSverdrupBO (2002) Democracy and the environment. In: PageEARedcliftM (eds) Human Security and the Environment: International Comparisons. Edward Elgar Publishing: Cheltenham, UK, 45–70.
14.
GrossmanGMKruegerAB (1991) Environmental impacts of a North American free trade agreement. NBER Working Paper No. 3914. National Bureau of Economic Research: Cambridge, MA. Available at: http://www.nber.org/papers/w3914.pdf (accessed 10 October 2014).
15.
GrossmanGMKruegerAB (1995) Economic growth and the environment. The Quarterly Journal of Economics110(2): 353–377.
16.
HendersonJV (2000) The effects of urban concentration on economic growth. NBER Working Paper No. 7503. National Bureau of Economic Research: Cambridge, MA. Available at: http://www.nber.org/papers/w7503.pdf (accessed 10 October 2014).
17.
HochstetlerK (2012) Democracy and the environment in Latin America and Eastern Europe. Comparative Environmental Politics: Theory, Practice, and Prospects199: 199–230.
18.
Holtz-EakinDSeldenTM (1995) Stoking the fires? CO2 emissions and economic growth. Journal of Public Economics57(1): 85–101.
19.
KuznetsS (1955) Economic growth and income inequality. The American Economic Review45(1): 1–28.
LeeC-CChiuYBSunCH (2010) The environmental Kuznets curve hypothesis for water pollution: Do regions matter?Energy Policy38(1): 12–23.
22.
LiHGrijalvaTBerrensRP (2007) Economic growth and environmental quality: A meta-analysis of environmental Kuznets curve studies. Economics Bulletin17(5):1–11.
23.
LiQReuvenyR (2006) Democracy and environmental degradation. International Studies Quarterly50(4): 935–956.
24.
MusolesiAMazzantiMZoboliR (2010) A panel data heterogeneous Bayesian estimation of environmental Kuznets curves for CO2 emissions. Applied Economics42(18): 2275–2287.
25.
NeumayerE (2002) Do democracies exhibit stronger international environmental commitment? A Cross-country analysis. Journal of Peace Research39(2): 139–164.
26.
PanayotouT (1993) Empirical tests and policy analysis of environmental degradation at different stages of economic development. ILO Working Papers no. 292778. International Labour Organization: Geneva, Switzerland. Available at: http://www.ilo.org/public/libdoc/ilo/1993/93B09_31_engl.pdf (accessed 10 October 2014).
27.
PanayotouT (2003) Economic growth and the environment. In: UNECE (ed.) Economic Survey of Europe, No 2. United Nations Economic Commission for Europe: Geneva, Switzerland, 45–72. Available at: http://www.unece.org/fileadmin/DAM/ead/pub/032/032_c2.pdf (accessed 10 October 2014).
28.
PayneRA (1995) Freedom and the environment. Journal of Democracy6(3): 41–55.
29.
PereletR (2007) Central Asia: Background paper on climate change. UNDP Human Development Report 2008.
30.
PoudelBNPaudelKPBhattaraiK (2009) Searching for an environmental Kuznets curve in carbon dioxide pollutant in Latin American countries. Journal of Agricultural and Applied Economics41(1): 13–27.
31.
Romero-AvilaD (2008) Questioning the empirical basis of the environmental Kuznets curve for CO2: New evidence from a panel stationarity test robust to multiple breaks and cross-dependence. Ecological Economics64(3): 559–574.
SchmalenseeRStokerTMJudsonRA (1998) World carbon dioxide emissions: 1950–2050. Review of Economics and Statistics80(1): 15–27.
34.
SeldenTMSongD (1994) Environmental quality and development: Is there a Kuznets curve for air pollution emissions?Journal of Environmental Economics and Management27(2): 147–162.
35.
ShafikNBandyopadhyayS (1992) Economic growth and environmental quality: Time series and cross country evidence. World Bank.
36.
TietenbergT (1988) Environmental and natural resource economics. Scott, Foresman and Company, Glenview.
37.
WRI (2011) Climate Analysis Indicators Tool (CAIT), Washington DC: version 8.0. World Resources Institute.
