Investigating the Shape of the Ekc: A Nonparametric Approach

25 Pages Posted: 14 Oct 2001

See all articles by Giovanni Baiocchi

Giovanni Baiocchi

Durham University - Department of Economics and Finance

Salvatore di Falco

University of York - Department of Economics and Related Studies

Date Written: September 2001

Abstract

In this paper we investigate the existence and shape of the Environmental Kuznets Curve (EKC) by means of nonparametric methods. We also investigate the issues involved in the choice of nonparametric estimator. We find that the nature of the economic relationship and the quality of environmental data can considerably impact estimates and therefore the implied policy recommendations. The flexible nature of nonparametric estimation allows us to develop a nonparametric test in the spirit of Silverman's (1981) bootstrap test to test whether the Kuznets curve exists and what shape it takes. We also estimate the nonparametric elasticity with respect of per capita income. We find evidence of asymmetric behaviour of the curve before and after the turning point.

Keywords: Environmental Kuznets Curve, nonparametric methods

JEL Classification: Q25, Q32

Suggested Citation

Baiocchi, Giovanni and di Falco, Salvatore, Investigating the Shape of the Ekc: A Nonparametric Approach (September 2001). Available at SSRN: https://ssrn.com/abstract=286695 or http://dx.doi.org/10.2139/ssrn.286695

Giovanni Baiocchi

Durham University - Department of Economics and Finance ( email )

Durham, DH1 3HY
United Kingdom
+44 (0) 191 334 6347 (Phone)
+44 (0) 191 334 6341 (Fax)

Salvatore Di Falco (Contact Author)

University of York - Department of Economics and Related Studies ( email )

Heslington
York 010 5DD
United Kingdom

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