Arbeitspapier

Nonlinearity, Heterogeneity and Unobserved Effects in the CO2-income Relation for Advanced Countries

We study long run carbon emissions-income relationships for advanced countries grouped in policy relevant groups: North America and Oceania, South Europe, North Europe. By relying on recent advances on Generalized Additive Mixed Models (GAMMs) and adopting interaction models, we handle simultaneously three main econometric issues, named here as functional form bias, heterogeneity bias and omitted time related factors bias, which have been proved to be relevant but have been addressed separately in previous papers. The model incorporates nonlinear effects, eventually heterogeneous across countries, for both income and time. We also handle serial correlation by using autoregressive moving average (ARMA) processes. We find that country-specific time-related factors weight more than income in driving the northern EU Environmental Kuznets. Overall, the countries differ more on their carbon-time relation than on the carbon-income relation which is in almost all cases monotonic positive. Once serial correlation and (heterogeneous) time effects have been accounted for, only three Scandinavian countries - Denmark, Finland and Sweden - present some threshold effect on the CO2-development relation

Language
Englisch

Bibliographic citation
Series: Nota di Lavoro ; No. 91.2013

Classification
Wirtschaft
Semiparametric and Nonparametric Methods: General
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Subject
Environmental Kuznets Curve
Semiparametric Models
Generalized Additive Mixed Models
Interaction Models

Event
Geistige Schöpfung
(who)
Mazzanti, Massimiliano
Musolesi, Antonio
Event
Veröffentlichung
(who)
Fondazione Eni Enrico Mattei (FEEM)
(where)
Milano
(when)
2013

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Mazzanti, Massimiliano
  • Musolesi, Antonio
  • Fondazione Eni Enrico Mattei (FEEM)

Time of origin

  • 2013

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