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Environmental Kuznets Curve: Conclusive Econometric Evidence for CO 2
Author(s) -
Chow Gregory C.,
Li Jie
Publication year - 2014
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.12048
Subject(s) - kuznets curve , economics , econometrics , econometric model , econometric analysis , panel data
This paper begins with a statistical formulation of the E nvironmental K uznets C urve ( EKC ) and discusses the major econometric problems raised in the literature in testing this hypothesis using panel data. A simple t ‐test is then presented that avoids these econometric problems. The result from applying the t ‐test confirms conclusively the EKC for CO 2 as formulated.