Lessons From Quantile Panel Estimation of the Environmental Kuznets Curve

Carlos A. Flores, Alfonso Flores-Lagunes, Dimitrios Kapetanakis

Research output: Contribution to journalArticle

27 Scopus citations

Abstract

We employ quantile regression fixed effects models to estimate the income-pollution relationship on NOx (nitrogen oxide) and SO2 (sulfur dioxide) using U.S. data. Conditional median results suggest that conditional mean methods provide too optimistic estimates about emissions reduction for NOx, while the opposite is found for SO2. Deleting outlier states reverses the absence of a turning point for SO2 in the conditional mean model, while the conditional median model is robust to them. We also document the relationship's sensitivity to including additional covariates for NOx, and undertake simulations to shed light on some estimation issues of the methods employed.

Original languageEnglish (US)
Pages (from-to)815-853
Number of pages39
JournalEconometric Reviews
Volume33
Issue number8
DOIs
StatePublished - Nov 1 2014
Externally publishedYes

Keywords

  • Environmental Kuznets curve
  • Income and the environment
  • Panel quantile estimation

ASJC Scopus subject areas

  • Economics and Econometrics

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