IS THERE AN EKC RELEVANT TO THE INDUSTRIAL EMISSION OF WATER POLLUTION FOR SEMC AND EU COUNTRIES?
Keywords:
Environmental Kuznets Curve, Water Pollution, Economic Growth, Cointegration, PanelAbstract
The Environmental Kuznet’s curve hypothesis admits the existence of an inverted U-shaped relationship between economic growth, generally approximated by GDP per capita, and environmental degradation. Despite the abundance of empirical literature on the environmental Kuznets curve, so far no study has been dealt with the relationship between economic growth and environmental pollution to Southern Eastern Mediterranean Counties SEMC and the European Union areas. Hence, we have therefore tried to extract an EKC specific for these two regions by focusing on the water pollution as an indicator of environmental degradation. For this aim, we have applied the technique of cointegration panel data for both samples in question over the period ranging from 1980 to 2005. Throughout this work, we have detected the existence of an environmental Kuznets curve with an inverted U-shaped specific to each sample. These curves admit two different turning points reflecting the differences between their levels of development.
Downloads
References
Abdul Jalil and SyedF.Mahmudb 2009. Environment Kuznets curve for CO2 emissions: A cointegration analysis for China. Journal of Energy Policy. VOL 37(12) PP 5167-5172.
Azomahou, T., F. Laisney and N. Van Phu, 2006, Economic development and CO2 emissions: A non parametric panel approach, Journal of Public Economics 90, 1347-1363.
Barbier, Edward B., 2001. The economics of tropical deforestation and land use: an introduction to the special issue. Land Economics 77 (2), 155–171.
Carson R.T., Jeon, Y., Mc Cubbin, D.R. 1997 The relationship between air pollution emissions and income: US data. Environment and Development Economics N 2, pp. 433–450.
Cavlovic, T. A., K. H. Baker, R. P. Berrens, and K.Gawande 2000 “A Meta-analysis of
Environmental Kuznets Curve Studies” Agricultural and Resource Economics Review 29, 32-42.
Chien-Chiang Lee, Yi-BinChiu , Chia-HungSun., 2009. The environmental Kuznets curve hypothesis for water pollution: Do regions matter? Energy policy vol 5, 113-126.
Cole, M.A., A.J. Rayner et J.M. Bates 1997. The environmental Kuznets curve: an empirical analysis. Environment and Development Economics 2: 401-416.
Cole. M.A. and R. J. R. Elliott 2003. Determining the trade–environment composition effect: the role of capital, labor and environmental regulations. Journal of Environmental Economics and Management 46(3): 363-383.
Cole, M.A, 2004. Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages. Ecological Economics, 48(1): 71-81.
Culas, R.J., 2007. Deforestation and the environmental Kuznets curve: an institutional perspective. Ecological Economics 61 (2), 429–437.
Dasgupta, S., Laplante, B., Wang, H., Wheeler, D., 2002. Confronting the environmental Kuznets curve. The Journal of Economic Perspectives 16 (1), 147–168.
Dinda, S, 2004. Environmental Kuznets curve hypothesis: a survey. Ecological Economics 49 (4), 431–455.
De Bruyn, S.M., van den Bergh, J.C.J.M., Opschoor, J.B., 1998. Economic growth and emissions: reconsidering empirical basis of environmental Kuznets curves. Ecological Economics 25 (2), 161–175.
Elif Akbostancı, Serap Turut Asık, G. Ipek Tunc 2009- The relationship between income and environment in Turkey: Is there an environmental Kuznets curve? vol. 37, no3, pp. 861-867.
El-Fadel, M., Massoud, M., 2000. Particulate matter in urban areas: health-based economic assessment. The Science of the Total Environment 257 (2–3), 133–146.
Engle, R., Granger, C.W.J., 1987. Cointegration and error correction: representation, estimation and testing. Econometrica 55, 251–276.
G. İpek Tunç, Serap Türüt-Aşık, Elif Akbostancı 2009. The relationship between income and environment in Turkey: Is there an environmental Kuznets curve? Journal of Energy Policy Volume 37, Issue 11, Pages 4177-4996.
Grossman, G.M., Kruger, A.B., 1991. Environmental impacts of the North American free trade agreement. NBER Working Paper 3914.
Grossman, G.M, -Kruger, A.B., 1995. Economic growth and the environment. Quarterly Journal of Economics 110 (2), 353–377.
Groen, Jan J J and Kleibergen, Frank, 2003. "Likelihood-Based Cointegration Analysis in Panels of Vector Error-Correction Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 295-318, April.
Harbaugh, W.T., Levinson, A., Wilson, D.W., 2002. Re-examining the empirical evidence for an environmental Kuznets curve. The Review of Economics and Statistics 84 (3), 541–551.
Heerink, N., Mulatu, A., Bulte, E., 2001. Income inequality and the environment: aggregation bias in environmental Kuznets curves. Ecological Economics 38 (3), 359–367.
Halicioglu, F, 2009. An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy 37 (3), 1156–1164.
Hurlin C and Mignon, V2007, "Une Synthèse des Tests de Cointégration sur Données de Panel", Economie et Prévision.
Im, K.S., Pesaran, M.H., Shin, Y., 2003. Testing for unit roots in heterogeneous panels. Journal of Econometrics 115 (1), 53–74.
Johansen, S., 1995. Likelihood-Based Inference in Cointegrated Vector Autoregres- sive Models. Oxford University Press, Oxford. ISBN 0-19-877449-4.
Kao, C, Chiang, M-H, 2000. On the estimation and inference of a cointegrated regression in panel data. In: Baltagi, B.H. (Ed.),Non stationary Panels, Panel Cointegration and Dynamic Panels, In: Advances in Econometrics, vol. 15. JAI Press, Amsterdam.
Levin, A, Lin, C.F, Chu, C, 2002. Unit root tests in panel data: asymptotic and finite-sample properties. Journal of Econometrics 108 (1), 1–24.
Moomaw,W.R.,Unruh,G.C,1997.Are environmental Kuznets curve misleading us? The case of CO2 emissions. Environment and Development Economics 2, 451–463.
Magnani, E.2000. The environmental Kuznets Curve, environmental protection policy and income distribution. Ecological Economics 32: 431-443.
Paudel, Krishna P., Zapata, Hector, Susanto, Dwi, 2005.An empirical test of Environmental Kuznets Curve for water pollution. Environmental and Resource Economics 31 (3), 325–348.
Panayotou, T. 1993. Empirical Tests and Policy Analysis of Environmental Degradation at Different Stages of Economic Development. Working Paper n° 238 Technology and Employment Programme, Geneva: International Labor Office.
Panayotou, T., 1997. Demystifying the environmental Kuznets curve: turning a black box into a policy tool. Environment and Development Economics 2 (4), 465–484.
Perman, R., Stern, D.I., 2003. Evidence from panel unit root and cointegration tests that the environmental Kuznets curve does not exist. The Australian Journal of Agricultural and Resource Economics 47 (3), 325–347.
Pedroni Peter, 1997, Panel Cointegration: Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis: New Results, Indiana University, San Diego (1997).
Pedroni, P., 2004. Panel cointegration: asymptotic and finite sample properties of pooled time series tests with an application to PPP hypothesis: new results. Econometric Theory 20 (3), 597–627.
Peter C.B. Phillips & Hyungsik R. Moon, 1999. "Linear Regression Limit Theory for Non stationary Panel Data," Cowles Foundation Discussion Papers N°1222, Cowles Foundation, Yale University.
Quah and Boon 2003 The economic cost of particulate air pollution on health in Singapore Journal of Asian Economics 14 (2003) 73–90.
Rodriguez-Meza, Jorge, Southgate,Douglas, Gonzalez-Vega, Claudio, 2003. Rural poverty, household response to shocks, and agricultural landuse: panel results for El Salvador. Department of Agriculture, Environmental and Developmental Economics, Ohio State University. Sept. 2003.
Sigman, H., 2002. International spillovers and water quality in rivers: do countries free ride? American Economic Review 92, 1152–1159.
Solakoglu, E. G., 2007. The effect of property rights on the relationship between economic growth and pollution for transition economies. Eastern European Economics 45,77–94.
Stern, D.I., Common, M.S., 2001. Is there an environmental Kuznets curve for sulfur? Journal of Environmental Economics and Management 41 (2), 162– 178.
Shafik N.1994. Economic Development and Environmental Quality: An econometric Analysis. Oxford Economic Papers 46: 757-773.
Shafik N. and Bandyopadhyay 1992. Economic Growth and Environmental Quality: Time Series and Cross- Country Evidence, World Bank Policy Research Working, Paper, WPS 904, ashington DC: Banque Mondiale.
Selden Thomas M. & Song Daqing,1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management. Vol 2: pp 147-162.
Stern, D.I., 2004. The rise and the fall of environmental Kuznets curve. World Development 32 (8), 1419–1439.
Torras, M., and J.K. Boyce 1998, Income, Inequality, and Pollution: A Reassessment of the Environmental Kuznets Curve, Ecological Economics 25(2):147-160.
Vincent, J.R. 1997 “Resource depletion and economic sustainability in Malaysia.” Environment and Development Economics 2(1):19-37.
