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Water pollution and income relationships: A seemingly unrelated partially linear analysis
Author(s) -
Pandit Mahesh,
Paudel Krishna P.
Publication year - 2016
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1002/2016wr018655
Subject(s) - pollutant , pollution , kuznets curve , econometrics , parametric statistics , environmental science , economics , mathematics , statistics , chemistry , ecology , biology , organic chemistry
We used a seemingly unrelated partially linear model (SUPLM) to address a potential correlation between pollutants (nitrogen, phosphorous, dissolved oxygen and mercury) in an environmental Kuznets curve study. Simulation studies show that the SUPLM performs well to address potential correlation among pollutants. We find that the relationship between income and pollution follows an inverted U‐shaped curve for nitrogen and dissolved oxygen and a cubic shaped curve for mercury. Model specification tests suggest that a SUPLM is better specified compared to a parametric model to study the income‐pollution relationship. Results suggest a need to continually assess policy effectiveness of pollution reduction as income increases.