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Thanasis Stengos
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Publisher: Journals Gateway
The Review of Economics and Statistics (2003) 85 (4): 1038–1047.
Published: 01 November 2003
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We explore the importance of modeling strategies when estimating the emissions-income relationship. Using U.S. state-level panel data on nitrogen oxide and sulfur dioxide emissions, we estimate several environmental Kuznets curves using the standard parametric framework as well as a more flexible semiparametric alternative. Formal statistical comparisons of the results overwhelmingly reject the parametric approach. Moreover, the differences, particularly for sulfur dioxide, are economically significant.