The Environmental Kuznets Curve: Real Progress or Misspecified Models?
- 1 November 2003
- journal article
- Published by MIT Press in The Review of Economics and Statistics
- Vol. 85 (4) , 1038-1047
- https://doi.org/10.1162/003465303772815916
Abstract
We explore the importance of modeling strategies when estimating the emissions-income relationship. Using U.S. state-level panel data on nitrogen oxide and sulfur dioxide emissions, we estimate several environmental Kuznets curves using the standard parametric framework as well as a more flexible semiparametric alternative. Formal statistical comparisons of the results overwhelmingly reject the parametric approach. Moreover, the differences, particularly for sulfur dioxide, are economically significant.Keywords
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