Dynamic misspecification in the environmental Kuznets curve: evidence from CO2 and SO2 emissions in the United Kingdom

Reference:

Fosten, J., Morley, B. and Taylor, T., 2012. Dynamic misspecification in the environmental Kuznets curve: evidence from CO2 and SO2 emissions in the United Kingdom. Ecological Economics, 76, pp. 25-33.

Official URL:

http://dx.doi.org/10.1016/j.ecolecon.2012.01.023

Abstract

This study looks at the behaviour of emissions when in disequilibrium with respect to the Environmental Kuznets curve (EKC) relationship. We use the non-linear threshold cointegration and error correction methodology and a long dataset beginning in 1830, in an application to the United Kingdom. There is significant evidence that, not only does the ‘inverse-U’ shape hold between per capita CO2 and SO2 emissions and GDP per capita, but we also find that temporary disequilibrium from the long-run EKC is corrected in an asymmetric fashion. This may be due to the historical pressure of environmental regulation in the UK to reduce emissions that are higher than permitted. However further analysis suggests that technological change can partially account for the asymmetric adjustment.

Details

Item Type	Articles
Creators	Fosten, J., Morley, B. and Taylor, T.
DOI	10.1016/j.ecolecon.2012.01.023
Departments	Faculty of Humanities & Social Sciences > Economics
Publisher Statement	Morley_Ecological-Economics_2012.pdf: NOTICE: this is the author’s version of a work that was accepted for publication in Ecological Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Ecological Economics, 2012, vol 76, DOI 10.1016/j.ecolecon.2012.01.023; Morley_Ecological-Economics_2012.docx: NOTICE: this is the author’s version of a work that was accepted for publication in Ecological Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Ecological Economics, 2012, vol 76, DOI 10.1016/j.ecolecon.2012.01.023
Refereed	Yes
Status	Published
ID Code	28789

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