The Environmental Kuznets Curve, Cointegration and Nonlinearity (replication data)

DOI

This paper clarifies some conceptual shortcomings of the empirical environmental Kuznets curve (EKC) literature that arise because of the hitherto inadequate application of unit root and cointegration techniques. The literature to date has ignored the fact, and a fortiori the consequences, that powers of integrated processes are themselves not integrated processes. The paper explains why standard methods should not be applied and discusses some recently proposed viable estimation and testing approaches for cointegrating polynomial regressions. The application to CO2 and SO2 emissions data shows that using appropriate methods leads to strongly reduced evidence for a cointegrating EKC compared to typical but conceptually not sound findings.

Identifier
DOI https://doi.org/10.15456/jae.2022321.0723186632
Metadata Access https://www.da-ra.de/oaip/oai?verb=GetRecord&metadataPrefix=oai_dc&identifier=oai:oai.da-ra.de:775580
Provenance
Creator Wagner, Martin
Publisher ZBW - Leibniz Informationszentrum Wirtschaft
Publication Year 2015
Rights Creative Commons Attribution 4.0 (CC-BY); Download
OpenAccess true
Contact ZBW - Leibniz Informationszentrum Wirtschaft
Representation
Language English
Resource Type Collection
Discipline Economics