Georgian Environmental Kuznets Curve: An Appropriate Estimation.
(2022) NEKN01 20221Department of Economics
- Abstract
- Empirical EKC literature has conceptual flaws that arise due to the inclusion of polynomials and cointegrating relationships of powers of integrated processes. Additionally, previous studies focused on a narrow nexus between environmental degradation and economic growth that yield only a partial EKC. Considering hereinabove mentioned points the aim of this study is to assess the EKC hypothesis in the case of Georgia using a composite measure of environmental degradation and employing the appropriate estimation of the cointegrating polynomial relationship developed by Wagner (2015). The proposed estimation model is an extension of a fully modified estimator of Phillips and Hansen (1990). Additionally, the model specification and... (More)
- Empirical EKC literature has conceptual flaws that arise due to the inclusion of polynomials and cointegrating relationships of powers of integrated processes. Additionally, previous studies focused on a narrow nexus between environmental degradation and economic growth that yield only a partial EKC. Considering hereinabove mentioned points the aim of this study is to assess the EKC hypothesis in the case of Georgia using a composite measure of environmental degradation and employing the appropriate estimation of the cointegrating polynomial relationship developed by Wagner (2015). The proposed estimation model is an extension of a fully modified estimator of Phillips and Hansen (1990). Additionally, the model specification and cointegrating relationship have been tested using a special KPSS-type test derived by Wagner (2015). The main findings suggest that an inverted U-shaped relationship exists when changes in biocapacity deficit/reserve, Kyoto basket of greenhouse gas emissions, and carbon dioxide emissions are incorporated into the analysis. However, Environmental Degradation Index does not support the existence of EKC. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9083544
- author
- Suleymanli, Farahim LU
- supervisor
- organization
- course
- NEKN01 20221
- year
- 2022
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Environmental Kuznets Curve, integrated processes, Planetary Boundary, Environmental Degradation Index
- language
- English
- id
- 9083544
- date added to LUP
- 2022-10-10 09:25:37
- date last changed
- 2022-10-10 09:25:37
@misc{9083544, abstract = {{Empirical EKC literature has conceptual flaws that arise due to the inclusion of polynomials and cointegrating relationships of powers of integrated processes. Additionally, previous studies focused on a narrow nexus between environmental degradation and economic growth that yield only a partial EKC. Considering hereinabove mentioned points the aim of this study is to assess the EKC hypothesis in the case of Georgia using a composite measure of environmental degradation and employing the appropriate estimation of the cointegrating polynomial relationship developed by Wagner (2015). The proposed estimation model is an extension of a fully modified estimator of Phillips and Hansen (1990). Additionally, the model specification and cointegrating relationship have been tested using a special KPSS-type test derived by Wagner (2015). The main findings suggest that an inverted U-shaped relationship exists when changes in biocapacity deficit/reserve, Kyoto basket of greenhouse gas emissions, and carbon dioxide emissions are incorporated into the analysis. However, Environmental Degradation Index does not support the existence of EKC.}}, author = {{Suleymanli, Farahim}}, language = {{eng}}, note = {{Student Paper}}, title = {{Georgian Environmental Kuznets Curve: An Appropriate Estimation.}}, year = {{2022}}, }