Journal
ENERGY ECONOMICS
Volume 34, Issue 6, Pages 2148-2156Publisher
ELSEVIER
DOI: 10.1016/j.eneco.2012.03.001
Keywords
Environmental Kuznets Curve; CO2 emissions; Nonlinear relationship; Threshold cointegration
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In this paper we model the long-run relationship between per capita CO2 and per capita income for the Spanish economy over the period 1857-2007. According to the Environmental Kuznets Curve (ECK) the relationship between the two variables has an inverted-U shape. However, previous studies for the Spanish economy only considered the existence of linear relationships. Such an approach may lack flexibility to detect the true shape of the relationship. Our empirical methodology accounts for a possible non-linear relationship through the use of threshold cointegration techniques. Our results confirm the non-linearity of the link between the two above-mentioned variables pointing to the existence of an Environmental Kuznets curve for the Spanish case. (C) 2012 Elsevier B.V. All rights reserved.
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