Journal
ENVIRONMENTAL & RESOURCE ECONOMICS
Volume 32, Issue 2, Pages 229-239Publisher
SPRINGER
DOI: 10.1007/s10640-005-2776-0
Keywords
environmental Kuznets curves; heterogeneity; panel data
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This paper casts doubt on empirical results based on panel estimations of an inverted-U relationship between per capita GDP and pollution. Using a new dataset for OECD countries on carbon dioxide emissions for the period 1960-1997, we find that the crucial assumption of homogeneity across countries is problematic. Decisively rejected are model specifications that feature even weaker homogeneity assumptions than are commonly used. Furthermore, our results challenge the existence of an overall Environmental Kuznets Curve for carbon dioxide emissions.
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