Empirical Analysis of National Income and So2 Emissions In Selected European Countries

Abstract

Data on GDP per capita and sulfur emissions for twelve European countries were analyzed to determine the relationship between emissions and income in these countries. As a whole, the relationship between sulfur emissions and per capita income is a fourth order polynomial and not a quadratic one as found in most studies. When countries were examined individually, seven out of the twelve countries depicted the same relationship. Looking closely at the regulations restricting sulfur emissions in the UK, the impact of all regulations supported the inverted U-shaped Kuznets curve. Individually, however, it is found that only two regulations have statistically significant impacts: Smoke Abatement Act in 1926 (reduced the amount of sulfur associated with a given level of GDP); and Clean Air Act in 1956 (increased the amount of sulfur emissions associated with a given level of GDP).

Keywords: Environmental Kuznet's Curve, Europe, Sulfur dioxide emission

JEL Classification: C33, Q53, Q58