Ordás Criado, Carlos (2007): Temporal and spatial homogeneity in air pollutants panel EKC estimations: Two nonparametric tests applied to Spanish provinces. Forthcoming in: Environmental and Resource Economics
Download (460kB) | Preview
Although panel data have been used intensively by a wealth of studies investigating the GDP-pollution relationship, the poolability assumption used to model these data is almost never addressed. This paper applies a strategy to test the poolability assumption with methods robust to functional misspecification. Nonparametric poolability tests are performed to check the temporal and spatial homogeneity of the panel and their results are compared with the conventional F-tests for a balanced panel of 48 Spanish provinces on four air pollutant emissions (CH4, CO, CO2 and NMVOC) over the 1990-2002 period. We show that temporal homogeneity may allow the pooling of the data and drive to well-defined nonparametric and parametric cross-sectional U-inverted shapes for all air pollutants. However, the presence of spatial heterogeneity makes this shape compatible with different timeseries patterns in every province - mainly increasing or decreasing depending on the pollutant. These results highlight the extreme sensitivity of the income-pollution relationship to region- or country-specific factors.
|Item Type:||MPRA Paper|
|Institution:||Institute for Research in Economics, University of Neuchâtel|
|Original Title:||Temporal and spatial homogeneity in air pollutants panel EKC estimations: Two nonparametric tests applied to Spanish provinces|
|Keywords:||Environmental Kuznets Curve; Air pollutants; Non/Semiparametric estimations; Poolability tests|
|Subjects:||C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
|Depositing User:||Carlos Ordás Criado|
|Date Deposited:||26. Sep 2007|
|Last Modified:||12. Feb 2013 20:08|
Aldy, J.E., “An Environmental Kuznets Curve Analysis of U.S. State-Level Carbon Dioxide Emissions,” The Journal of Environment Development, 2005, 14, 48–72. Azomahou, T., F. Laisney, and P. Nguyen Van, “Economic Development and CO2 Emissions: A Nonparametric Panel Approach,” Journal of Public Economics, 2006, 90, 1347–1363. Baltagi, B.H., J. Hidalgo, and Q. Li, “A nonparametric test for poolability using panel data,” Journal of Econometrics, 1996, 75, 345–367. Bertinelli, L. and E. Strobl, “The Environmental Kuznets Curve semi-parametrically revisited,” Economics Letters, 2005, 88, 350–357. Brock, W.A. and M.S. Taylor, “Economic growth and the environment: a review of theory and empirics,” Working paper 10854, NBER Oct. 2004. Copeland, B.R. and M.S. Taylor, Trade and the Environment, New Jersey: Princeton University Press, 2003. de Bruyn, J.M., J.C.J.M. van den Bergh, and J.B. Opschoor, “Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves,” Ecological Economics, 1998, 25, 161–175. Dijkgraaf, E. and R.J. Vollebergh, “A Test for Parameter Homogeneity in CO2 Panel EKC Estimations,” Environmental and Resource Economics, 2005, 32, 229–239. Groot, H.L.F. De, C.A. Withagen, and Z. Minliang, “Dynamics of China’s regional development and pollution: an investigation into the Environmental Kuznets Curve,” Environment and Development Economics, 2004, 9, 507–537. Grossman, G. M. and A.B. Krueger, “Economic growth and the environment,” Quarterly Journal of Economics, 1995, 112, 353–378. Heil, M.T. and T.M. Selden, “Carbon emissions and economic development: future trajectories based on historical experience,” Environment and Development Economics, 2001, 6, 63–83. Herrero, C., A. Soler, and A. Villar, “Capital Humano y Desarrollo Humano en España, sus Comunidades Autónomas y Provincias. 1980-2000,” Programa de apoyo al capital humano, Fundación Bancaja y Instituto Valenciano de Investigaciones Económicas (Ivie) 2004. Holtz-Eakin, D. and T.M. Selden, “Stocking the fires? CO2 emissions and economic growth,” Journal of Public Economics, 1995, 57, 85–101. Hsiao, Cheng, Analysis of Panel Data, 2nd ed., Cambridge: Cambridge University Press, 2003. Koop, G. and L. Tole, “Is there an the environmental Kuznets curve for deforestation,” Journal of Development Economics, 1999, 58, 231–244. List, J.A. and C.A. Gallet, “The environmental Kuznets curve: does one size fit all?,” Ecological Economics, 1999, 31, 409–423. Millimet, D.L., J.A List, and T. Stengos, “The Environmental Kuznets Curve: real progress or misspecified models?,” The Review of Economics and Statistics, 2003, 85 (1), 1038–1047. Perman, R. and D.I. Stern, “Evidence from panel unit root and cointegration tests that the environmental Kuznets curve does not exist.,” Australian Journal of Agricultural and Resource Economics, 2003, 47(3). Robinson, P., “Root-N-Consistent Semiparametric Regression,” Econometrica, 1988, 56, 931–954. Roca, J., E. Padilla, M. Farre, and V. Galletto, “Economic growth and atmospheric pollution in Spain: discussing the environmental Kuznets curve hypothesis,” Ecological Economics, 2001, 39, 85–99. Schmalensee, R., T.M. Stoker, and R.A. Judson, “World carbon dioxide emissions: 1950-2050,” Review of Economics and Statistics, 1998, 80, 15–27. Selden, T.M. and D. Song, “Environmental Quality and Development: Is there a Kuznets Curve for Air Pollution Emissions?,” Journal of Environmental Economics and Management, 1994, 27, 147–162. Stern, D.I., The Environmental Kuznets Curve, Internet Encyclopaedia of Ecological Economics, June 2003. Taskin, F. and O. Zaim, “Searching for a Kuznets curve in environmental efficiency using kernel estimation,” Economics letters, 2000, 68, 217–223. Van, P. Nguyen and T. Azomahou, “Heterogeneity in Environmental Quality: An Empirical Analysis of Deforestation,” Journal of Development Economics, 2007, 84(1). Vollebergh, H.R.J., E. Dijkgraaf, and B. Melenberg, “Environmental Kuznets Curves for CO2: Heterogeneity versus Homogeneity,” Discussion paper 25, CentER, Tilburg University 2005. Wood, S., Generalized Additive Models: An Introduction with R, Vol. 67, Chapman & Hall, Texts in Statistical Sciences, 2006. Yatchew, Adonis, Semiparametric Regression for the Applied Econometrician, Cambridge: Cambridge University Press, 2003.