nep-res New Economics Papers
on Resource Economics
Issue of 2009‒11‒27
two papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Opportunity cost of CO2 emission reductions: developing vs. developed economies By Francisco Álvarez
  2. Lessons from Quantile Panel Estimation of the Environmental Kuznets Curve By Carlos A. Flores; Alfonso Flores-Lagunes; Dimitrios Kapetanakis

  1. By: Francisco Álvarez (Universidad Complutense de Madrid, Dto. Ftos. Analisis Economico II)
    Abstract: Presentamos evidencia empírica sobre convergencia en magnitudes medioambientales para países desarrollados y en vías de desarrollo. Además, partiendo de un modelo standard "putty-clay" de uso de energía, introducimos un stock de contaminación sobre el que se fija un objetivo de reducción de emisiones. El análisis teórico ofrece indicaciones sobre qué variables deberían ser objeto de futuros acuerdos de reducción de emisiones entre países heterogéneos.
    Keywords: economía medioambiental, convergencia, reducción de emisiones, environment economy, convergence, emission reductions.
    Date: 2009
  2. By: Carlos A. Flores (Department of Economics, University of Miami); Alfonso Flores-Lagunes (Food and Resource Economics Department, University of Florida and IZA, Bonn, Germany); Dimitrios Kapetanakis (Food and Resource Economics Department, Universty of Florida)
    Abstract: The environmental Kuznets curve (EKC) hypothesizes that the income-pollution rela- tionship has an inverted U shape: pollution increases with income up to a turning point beyond which it decreases. The empirical literature has concentrated on estimation of this relationship at the mean employing longitudinal data, with the typical ?nding supporting the inverted U shape. Conditional mean estimation, however, can mask heterogeneities present at higher and/or lower quantiles of the emissions?distribution, in addition to being more sensitive to the presence of outliers. We apply methods for conditional-quantile panel ?xed e¤ects models to the estimation of the income-pollution relationship on U.S. state-level data on NOx (nitrogen oxide) and SO2 (sulfur dioxide) pollutants over the period 1929- 1994. Our results indicate that conditional mean methods provide too optimistic estimates about emissions reduction of NOx, as conditional-quantile methods suggest that the turning point of the relationship occurs at higher values of income; while the opposite is found for SO2. Another important lesson drawn is that the income-pollution relationship is sensitive to the presence of outliers in the data.
    Keywords: Environmental Kuznets Curve, Panel Quantile Estimation, Income and the Environment
    JEL: Q56 C21 C23
    Date: 2009–08

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