Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Nonlinearity, heterogeneity and unobserved effects in the carbon dioxide emissions-economic development relation for advanced countries

Nonlinearity, heterogeneity and unobserved effects in the carbon dioxide emissions-economic... Abstract We study long run carbon dioxide emissions-economic development relationships for advanced countries grouped in policy relevant groups: North America and Oceania, South Europe, North Europe. By relying on recent advances on Generalized Additive Mixed Models (GAMMs) and adopting interaction models, we handle simultaneously three main econometric issues, named here as functional form bias, heterogeneity bias and omitted time related factors bias , which have been proved to be relevant but have been addressed separately in previous papers. The model incorporates nonlinear effects, eventually heterogeneous across countries, for both income and time. We also handle serial correlation by using autoregressive moving average (ARMA) processes. We find that country-specific time related factors weight more than income in driving the northern EU Environmental Kuznets. Overall, the countries differ more on their carbon-time relation than on the carbon-income relation which is in almost all cases monotonic positive. Once serial correlation and (heterogeneous) time effects have been accounted for, only three Scandinavian countries – Denmark, Finland and Sweden – present some threshold effect on the CO 2 -development relation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Studies in Nonlinear Dynamics & Econometrics de Gruyter

Nonlinearity, heterogeneity and unobserved effects in the carbon dioxide emissions-economic development relation for advanced countries

Download PDF
21 pages

Loading next page...
 
/lp/de-gruyter/nonlinearity-heterogeneity-and-unobserved-effects-in-the-carbon-vtrrlix0jG
Publisher
de Gruyter
Copyright
Copyright © 2014 by the
ISSN
1081-1826
eISSN
1558-3708
DOI
10.1515/snde-2012-0082
Publisher site
See Article on Publisher Site

Abstract

Abstract We study long run carbon dioxide emissions-economic development relationships for advanced countries grouped in policy relevant groups: North America and Oceania, South Europe, North Europe. By relying on recent advances on Generalized Additive Mixed Models (GAMMs) and adopting interaction models, we handle simultaneously three main econometric issues, named here as functional form bias, heterogeneity bias and omitted time related factors bias , which have been proved to be relevant but have been addressed separately in previous papers. The model incorporates nonlinear effects, eventually heterogeneous across countries, for both income and time. We also handle serial correlation by using autoregressive moving average (ARMA) processes. We find that country-specific time related factors weight more than income in driving the northern EU Environmental Kuznets. Overall, the countries differ more on their carbon-time relation than on the carbon-income relation which is in almost all cases monotonic positive. Once serial correlation and (heterogeneous) time effects have been accounted for, only three Scandinavian countries – Denmark, Finland and Sweden – present some threshold effect on the CO 2 -development relation.

Journal

Studies in Nonlinear Dynamics & Econometrics – de Gruyter

Published: Dec 1, 2014

References

  • a Generalized Additive Models An Introductionwith Florida
    Wood
  • Profile likelihood estimation of partially linear panel data models with fixed effects
    Su
  • Approximate Inference in Generalized Linear Mixed Models of the
    Breslow
  • Multivariate Regression Models for Panel Data of
    Chamberlain
  • Additive Regression and Other Nonparametric Models of
    Stone
  • Multivariate Regression Models for Panel Data of
    Chamberlain
  • Semiparametric of Variance With Product Thin - Plate of the
    Gu
  • The Environmental Kuznets curve a Critical Survey Institutions and Environmental Policy edited by and Publishing
    Borghesi
  • Nonparametric Estimation and Testing of Fixed Effects Panel Data Models of
    Henderson
  • Technology International Trade and Pollution from US Manufacturing
    Levinson
  • Friedberg Did Unilateral Divorce Raise Divorce Rates
  • OECD Taxation Innovation the OECD Studies OECD Publishing
    Green
  • The State of Compliance in the Kyoto Protocol Reflection
    ICCG
  • Greenhouse Gas Emission Trends and Projections in Europe Agency
    Copenhagen
  • On Confidence Intervals for Generalized Additive Models Based on Penalized Regression Australian and New Zealand of
    Wood
  • The Simple Analytics of the Environmental Kuznets Curve of
    Andreoni
  • Generalized Additive Models
    Hastie
  • Tax Policy and Urban Evidence from the Indiana Enterprise Zone Program of
    Papke
  • OECD Fostering Innovation for OECD Studies OECD Publishing
    Green
  • Stable and Efficient Multiple Smoothing Parameter Estimation for Generalized Additive Models of the
    Wood
  • Time Series Princeton Princeton University
    Hamilton
  • Policies and Technological Innovation Evidence Based on Patent Environmental
    Johnstone
  • the of
    Grossman
  • The Heterogeneity of Carbon Kuznets Curves for Advanced Countries : Comparing Homogeneous Heterogeneous and Shrinkage / Bayesian Estimators
    Mazzanti
  • The Real Progress or Misspecified Models The of and
    Millimet
  • Competitiveness Effects of Environmental Tax Reforms Publishable Final Report to the European Commission http dmu dk cometr
    Andersen
  • Semiparametric Regression University
    Ruppert
  • Semiparametric Regression University
    Ruppert
  • Modelling and Smoothing Parameter Estimation with Multiple Quadratic Penalties of the
    Wood
  • Greenhouse Gas Emission Trends and Projections in Europe Agency
    Copenhagen
  • the Pollution Hypothesis Theory Evidence of and
    Ordas Criado
  • Thin Plate Regression
    Wood
  • Carbon Taxation Lessons from Europe University
    Andersen
  • The Evolution of Environmental and Labour Productivity Dynamics of
    Marin
  • OECD Fostering Innovation for OECD Studies OECD Publishing
    Green
  • Tax Policy and Urban Evidence from the Indiana Enterprise Zone Program of
    Papke
  • Nonparametric Identification in Nonseparable Panel Data Models with Generalized Fixed Effects Working Paper of University
    Hoderline
  • Competitiveness Effects of Environmental Tax Reforms Publishable Final Report to the European Commission http dmu dk cometr
    Andersen
  • Semiparametric of Variance With Product Thin - Plate of the
    Gu
  • Policies and Technological Innovation Evidence Based on Patent Environmental
    Johnstone
  • a Generalized Additive Models An Introductionwith Florida
    Wood
  • mgcv package
    Wood
  • Environmental Policy Stringency and Technological Innovation : Evidence from Survey Data and Patent
    Johnstone
  • Pasten Tale of Two Elasticities General Theoretical Framework for The Environmental Kuznets Curve
    Figueroa
  • Thin Plate Regression
    Wood
  • Towards a in Europe Environment Agency
    Green
  • Estimation and Inference in Large Heterogenous Panels with Multifactor Error Structure
    Pesaran
  • The Heterogeneity of Carbon Kuznets Curves for Advanced Countries : Comparing Homogeneous Heterogeneous and Shrinkage / Bayesian Estimators
    Mazzanti
  • Identification and Estimation of a Nonparametric Panel Data Model with Unobserved Heterogeneity mimeo
    Evdokimov
  • On the Robustness of Robustness Checks of the EKC Hypothesis Environmental and Resource
    Galeotti
  • Bayesian Approach to the Estimation of EKC for CO
    Musolesi
  • Structural Nonparametric Reappraisal of the CO Missions - Income Relationship - MERIT working paper
    Azomahou
  • OECD Choosing Fiscal Consolidation Instruments Compatible with Growth and Equity OECD Publishing
    Paris
  • Asymptotics for Penalized Splines in Generalized Additive Models mimeo
    Yoshida
  • Sustainability Environmental Innovations and Competitiveness in Evolutionary Perspectives Evidence from the EU of
    Gilli
  • Smoothing spline Gaussian regression : more scalable computation via efficient approximation of the
    Kim
  • Dynamics and Revisiting the Nexus In a Nonparametric Setting
    Azomahou
  • Invention and transfer of climate change mitigation technologies on a global scale : a study drawing on patent data of Policy
    Dechezlepretre
  • Semiparametric Estimation of Partially Linear Panel Data Models of
    Li
  • OECD Indicators to Measure Decoupling of Environmental Pressure from Economic Growth OECD
    Paris
  • The Real Progress or Misspecified Models The of and
    Millimet
  • the Core team nlme Linear and Nonlinear Mixed Effects Models
    Pinheiro
  • Nonparametric Semiparametric Panel Econometric Models Estimation Testing mimeo
    Su
  • Coverage Properties of Confidence Intervals for Generalized Additive Model Components of
    Marra
  • Fast Stable Direct Fitting and Smoothness Selection for Generalized Additive Models of the
    Wood
  • von Modeling Monitoring Data of the
    Augustin
  • Smoothing spline Gaussian regression : more scalable computation via efficient approximation of the
    Kim
  • Choosing Among Alternative Non - experimental Methods for Estimating the Impact of Social Programs : The Case of Manpower Training
    Heckman
  • On the Robustness of Robustness Checks of the EKC Hypothesis Environmental and Resource
    Galeotti
  • Stove Nonparametric Additive Models for Panels of Time Series
    Mammen
  • the of
    Grossman
  • Asymptotics for Penalized Splines in Generalized Additive Models mimeo
    Yoshida
  • Estimation and Inference in Large Heterogenous Panels with Multifactor Error Structure
    Pesaran
  • Bayesian Approach to the Estimation of EKC for CO
    Musolesi
  • the Pollution Hypothesis Theory Evidence of and
    Ordas Criado
  • Stove Nonparametric Additive Models for Panels of Time Series
    Mammen
  • Dynamic Model of the Environmental Kuznets curve Turning Point Environmental
    Egli
  • OECD Taxation Innovation the OECD Studies OECD Publishing
    Green
  • OECD Choosing Fiscal Consolidation Instruments Compatible with Growth and Equity OECD Publishing
    Paris
  • of Panel Data University
    Hsiao
  • Asymptotics for Penalized Additive Regression of the Japan Statistical
    Yoshida
  • development CO emissions a non parametric panel approach of
    Azomahou
  • the Core team nlme Linear and Nonlinear Mixed Effects Models
    Pinheiro
  • The State of Compliance in the Kyoto Protocol Reflection
    ICCG
  • Fixed - Effects and Related Estimators for Correlated Random - Coefficient and Treatment - Effect Panel Data Models The of
    Wooldridge
  • On Confidence Intervals for Generalized Additive Models Based on Penalized Regression Australian and New Zealand of
    Wood
  • Environmental Policy Stringency and Technological Innovation : Evidence from Survey Data and Patent
    Johnstone
  • Nonparametric Semiparametric Panel Econometric Models Estimation Testing mimeo
    Su
  • Nonparametric Estimation and Testing of Fixed Effects Panel Data Models of
    Henderson
  • Asymptotics for Penalized Additive Regression of the Japan Statistical
    Yoshida
  • The Evolution of Environmental and Labour Productivity Dynamics of
    Marin
  • Time Series Princeton Princeton University
    Hamilton
  • Dynamic Model of the Environmental Kuznets curve Turning Point Environmental
    Egli
  • Approximate Inference in Generalized Linear Mixed Models of the
    Breslow
  • Mixed effects models in PLUS New York Verlag
    Pinheiro
  • Dynamics and Revisiting the Nexus In a Nonparametric Setting
    Azomahou
  • of Panel Data University
    Hsiao
  • Generalized Additive Models
    Hastie
  • Choosing Among Alternative Non - experimental Methods for Estimating the Impact of Social Programs : The Case of Manpower Training
    Heckman
  • Fast Stable Direct Fitting and Smoothness Selection for Generalized Additive Models of the
    Wood
  • The Model of
    Brock
  • Carbon Taxation Lessons from Europe University
    Andersen
  • Sustainability Environmental Innovations and Competitiveness in Evolutionary Perspectives Evidence from the EU of
    Gilli
  • Stable and Efficient Multiple Smoothing Parameter Estimation for Generalized Additive Models of the
    Wood
  • The Simple Analytics of the Environmental Kuznets Curve of
    Andreoni
  • Identifying Reduced - form Relations with Panel Data : The Case of Pollution and Income of and
    Melenberg
  • Report Fighting climate change : Human solidarity in a divided world
    UNDP
  • On the Green side of Trade competitiveness
    Costantini
  • Pasten Tale of Two Elasticities General Theoretical Framework for The Environmental Kuznets Curve
    Figueroa
  • development CO emissions a non parametric panel approach of
    Azomahou
  • Towards a in Europe Environment Agency
    Green
  • Friedberg Did Unilateral Divorce Raise Divorce Rates
  • Nonparametric Identification in Nonseparable Panel Data Models with Generalized Fixed Effects Working Paper of University
    Hoderline
  • Profile likelihood estimation of partially linear panel data models with fixed effects
    Su
  • Modelling and Smoothing Parameter Estimation with Multiple Quadratic Penalties of the
    Wood
  • Semiparametric Estimation of Partially Linear Panel Data Models of
    Li
  • Additive Regression and Other Nonparametric Models of
    Stone
  • Fixed - Effects and Related Estimators for Correlated Random - Coefficient and Treatment - Effect Panel Data Models The of
    Wooldridge
  • The Strategy of Environmental Treaty - making University
    Barrett
  • Models for the a Survey of Economic Dynamics and
    Kijima
  • Technology International Trade and Pollution from US Manufacturing
    Levinson
  • Structural Nonparametric Reappraisal of the CO Missions - Income Relationship - MERIT working paper
    Azomahou
  • On the Green side of Trade competitiveness
    Costantini
  • Some Asymptotic Results on Generalized Penalized Spline Smoothing of the
    Kauermann
  • The Strategy of Environmental Treaty - making University
    Barrett
  • OECD Indicators to Measure Decoupling of Environmental Pressure from Economic Growth OECD
    Paris
  • Identifying Reduced - form Relations with Panel Data : The Case of Pollution and Income of and
    Melenberg
  • Invention and transfer of climate change mitigation technologies on a global scale : a study drawing on patent data of Policy
    Dechezlepretre
  • Report Fighting climate change : Human solidarity in a divided world
    UNDP
  • Coverage Properties of Confidence Intervals for Generalized Additive Model Components of
    Marra
  • Mixed effects models in PLUS New York Verlag
    Pinheiro
  • Some Asymptotic Results on Generalized Penalized Spline Smoothing of the
    Kauermann
  • The Environmental Kuznets curve a Critical Survey Institutions and Environmental Policy edited by and Publishing
    Borghesi
  • von Modeling Monitoring Data of the
    Augustin
  • mgcv package
    Wood
  • The Encyclopedia of Climate edited by University
    Dietz
  • The Model of
    Brock
  • Identification and Estimation of a Nonparametric Panel Data Model with Unobserved Heterogeneity mimeo
    Evdokimov
  • The Encyclopedia of Climate edited by University
    Dietz
  • Models for the a Survey of Economic Dynamics and
    Kijima