Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
GTAP FAQs
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Resource Display

GTAP Resource #1098

"Economic Development, Trade and Environmental Quality: Environmental Kuznets Curve Hypothesis in a Threshold Model."
by Alpay, Savas


Abstract
The proposed inverted U-type relationship between environmental degradation and per capita income (known as EKC hypothesis) has been re-examined in this paper. Previous studies on EKC hypothesis are criticised due to their assumption of the quadratic or cubic specification of pollution with respect to income per capita; it is unclear why the specific reduced-form equation employed in their estimations exists. An important contribution of our study is to overcome this problem by employing the threshold estimation method developed by Hansen (1996, 2000), which can directly and rigorously test EKC. We find no evidence for EKC hypothesis between pollution and income; increases in income reduce the load on the environment, but they do not lead to improvement in environmental quality. Most importantly, for the first time in the literature we take openness to trade as the threshold variable, rather than GDP per capita, and test for an EKC-type behavior. Our results present a weak support for the hypothesis that higher openness lead to improved environmental conditions.

Key Words: Economic Development, Environmental Kuznets Curve, Openness to Trade, Threshold Model


Resource Details (Export Citation) GTAP Keywords
Category: 2002 Conference Paper
Status: Published
By/In: Presented at the 5th Annual Conference on Global Economic Analysis, Taipei, Taiwan
Date: 2002
Version:
Created: Bacou, M. (5/15/2002)
Updated: Bacou, M. (5/15/2002)
Visits: 2,556
No keywords have been specified.


Attachments
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.


Public Access
  File format threshold   (149.0 KB)   Replicated: 0 time(s)


Restricted Access
No documents have been attached.


Special Instructions
No instructions have been specified.


Comments (0 posted)
You must log in before entering comments.

No comments have been posted.