Growth and pollution convergence: Theory and evidence

Ordás Criado, C., Valente, S. and Stengos, T. (2011) Growth and pollution convergence: Theory and evidence. Journal of Environmental Economics and Management, 62 (2). pp. 199-214. ISSN 0095-0696

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Stabilizing pollution levels in the long run is a pre-requisite for sustainable growth. We develop a neoclassical growth model with endogenous emission reduction predicting that, along optimal sustainable paths, pollution growth rates are (i) positively related to output growth (scale effect) and (ii) negatively related to emission levels (defensive effect). This dynamic law reduces to a convergence equation that is empirically tested for two major and regulated air pollutants – sulfur oxides and nitrogen oxides – with a panel of 25 European countries spanning the years 1980–2005. Traditional parametric models are rejected by the data. More flexible regression techniques confirm the existence of both the scale and the defensive effect, supporting the model predictions.

Item Type: Article
Uncontrolled Keywords: air pollution,convergence,economic growth,nonparametric regressions,sdg 8 - decent work and economic growth ,/dk/atira/pure/sustainabledevelopmentgoals/decent_work_and_economic_growth
Faculty \ School: Faculty of Social Sciences > School of Economics
UEA Research Groups: Faculty of Social Sciences > Research Groups > Environment, Resources and Conflict
Faculty of Social Sciences > Research Groups > Economic Theory
Depositing User: Pure Connector
Date Deposited: 24 Sep 2016 00:57
Last Modified: 07 Mar 2024 02:04
DOI: 10.1016/j.jeem.2010.10.009

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