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An Environmental Kuznets Curve for N 2 O emissions in Germany: an ARDL approach
Author(s) -
ZambranoMonserrate Manuel A.,
Fernandez Mario Andres
Publication year - 2017
Publication title -
natural resources forum
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.646
H-Index - 49
eISSN - 1477-8947
pISSN - 0165-0203
DOI - 10.1111/1477-8947.12122
Subject(s) - kuznets curve , cointegration , distributed lag , economics , environmental degradation , agriculture , econometrics , autoregressive model , panel data , ordinary least squares , lag , order (exchange) , environmental science , natural resource economics , geography , ecology , computer network , archaeology , finance , computer science , biology
This paper analyses the relationship between nitrous oxide (N 2 O) emissions, economic growth, agricultural land used and exports in Germany. We use time‐series data between 1970 and 2012 and the Autoregressive Distributed Lag (ARDL) methodology to test for cointegration in the long run. Results show that there is a quadratic long run relationship between N 2 O emissions and economic growth, confirming the existence of an Environmental Kuznets Curve (EKC) for Germany. Agricultural land area affects N 2 O emissions positively, whereas exports affect emissions negatively. The turning point is $27,880, which is within the sample and implies that Germany is in the decreasing part of the curve of environmental degradation. The paper shows that, contrary to testing the EKC in less developed countries, mitigation of N 2 O emissions does not negatively affect growth in Germany. As such, it is feasible to undertake any conservative policy in order to reduce emissions without major consequences on economic sectors.