nep-res New Economics Papers
on Resource Economics
Issue of 2006‒11‒12
two papers chosen by
Maximo Rossi
Universidad de la Republica

  1. The Carbon Kuznets Curve. A Cloudy Picture Emitted by Bad Econometrics? By Wagner, Martin
  2. Decreasing of Oil Extraction: Consumption behavior along transition paths By Bazhanov, Andrei

  1. By: Wagner, Martin (Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria)
    Abstract: In recent years many empirical studies of environmental Kuznets curves employing unit root and cointegration techniques have been conducted for both time series and panel data. When using such methods several issues arise: the effects of a short time dimension, in a panel context the effects of cross-sectional dependence, and the presence of nonlinear transformations of integrated variables. We discuss and illustrate how ignoring these problems and applying standard methods leads to questionable results. Using an estimation approach that addresses the second and third problem we find no evidence for an inverse U-shaped relationship between GDP and CO2 emissions.
    Keywords: Carbon Kuznets Curve, Panel data, Unit roots, Cointegration, Cross-sectional dependence, Nonlinear transformations of regressors
    JEL: C12 C13 Q20
    Date: 2006–11
  2. By: Bazhanov, Andrei
    Abstract: A normative analysis of the problem of optimal extraction of a non-renewable resource is considered. The economy depends on the essential non-renewable resource and the rate of the resource extraction increases over time. At some instant the government gradually switches to a sustainable (in sense of non-decreasing consumption over time) pattern of the resource extraction. Different approaches are offered for the construction some curves of switching to decreasing paths of the resource depletion. Consumption paths have diverse behavior patterns along these curves, including a path of unlimited growth. A new approach to the Rawlsian maximin criterion which allows for growth of consumption is offered.
    Keywords: Non-renewable resource; Intergenerational justice; Hartwick rule; Optimal path of extraction; Generalized Rawlsian criterion
    JEL: Q38 Q32
    Date: 2006–10–08

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