Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/wly/natres/v41y2017i2p119-127.html
   My bibliography  Save this article

An Environmental Kuznets Curve for N2O emissions in Germany: an ARDL approach

Author

Listed:
  • Manuel A. Zambrano‐Monserrate
  • Mario Andres Fernandez
Abstract
This paper analyses the relationship between nitrous oxide (N2O) emissions, economic growth, agricultural land used and exports in Germany. We use time‐series data between 1970 and 2012 and the Autoregressive Distributed Lag (ARDL) methodology to test for cointegration in the long run. Results show that there is a quadratic long run relationship between N2O emissions and economic growth, confirming the existence of an Environmental Kuznets Curve (EKC) for Germany. Agricultural land area affects N2O emissions positively, whereas exports affect emissions negatively. The turning point is $27,880, which is within the sample and implies that Germany is in the decreasing part of the curve of environmental degradation. The paper shows that, contrary to testing the EKC in less developed countries, mitigation of N2O emissions does not negatively affect growth in Germany. As such, it is feasible to undertake any conservative policy in order to reduce emissions without major consequences on economic sectors.

Suggested Citation

  • Manuel A. Zambrano‐Monserrate & Mario Andres Fernandez, 2017. "An Environmental Kuznets Curve for N2O emissions in Germany: an ARDL approach," Natural Resources Forum, Blackwell Publishing, vol. 41(2), pages 119-127, May.
    • Handle: RePEc:wly:natres:v:41:y:2017:i:2:p:119-127
    DOI: 10.1111/1477-8947.12122
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1477-8947.12122
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1477-8947.12122?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Roca, Jordi & Padilla, Emilio & Farre, Mariona & Galletto, Vittorio, 2001. "Economic growth and atmospheric pollution in Spain: discussing the environmental Kuznets curve hypothesis," Ecological Economics, Elsevier, vol. 39(1), pages 85-99, October.
    2. Stern, David I. & Common, Michael S., 2001. "Is There an Environmental Kuznets Curve for Sulfur?," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 162-178, March.
    3. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 99-125.
    4. Zhang, Xing-Ping & Cheng, Xiao-Mei, 2009. "Energy consumption, carbon emissions, and economic growth in China," Ecological Economics, Elsevier, vol. 68(10), pages 2706-2712, August.
    5. Jaunky, Vishal Chandr, 2011. "The CO2 emissions-income nexus: Evidence from rich countries," Energy Policy, Elsevier, vol. 39(3), pages 1228-1240, March.
    6. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    7. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    8. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
    9. Zivot, Eric & Andrews, Donald W K, 2002. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 25-44, January.
    10. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    11. Bölük, Gülden & Mert, Mehmet, 2015. "The renewable energy, growth and environmental Kuznets curve in Turkey: An ARDL approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 587-595.
    12. Saboori, Behnaz & Sulaiman, Jamalludin, 2013. "Environmental degradation, economic growth and energy consumption: Evidence of the environmental Kuznets curve in Malaysia," Energy Policy, Elsevier, vol. 60(C), pages 892-905.
    13. Roca, Jordi & Serrano, Monica, 2007. "Income growth and atmospheric pollution in Spain: An input-output approach," Ecological Economics, Elsevier, vol. 63(1), pages 230-242, June.
    14. Panayotou T., 1993. "Empirical tests and policy analysis of environmental degradation at different stages of economic development," ILO Working Papers 992927783402676, International Labour Organization.
    15. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969.
    16. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    17. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    18. Managi, Shunsuke & Hibiki, Akira & Tsurumi, Tetsuya, 2009. "Does trade openness improve environmental quality?," Journal of Environmental Economics and Management, Elsevier, vol. 58(3), pages 346-363, November.
    19. Masih, Abul M. M. & Masih, Rumi, 1997. "On the temporal causal relationship between energy consumption, real income, and prices: Some new evidence from Asian-energy dependent NICs Based on a multivariate cointegration/vector error-correctio," Journal of Policy Modeling, Elsevier, vol. 19(4), pages 417-440, August.
    20. Wang, Yuan & Han, Rong & Kubota, Jumpei, 2016. "Is there an Environmental Kuznets Curve for SO2 emissions? A semi-parametric panel data analysis for China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1182-1188.
    21. Soytas, Ugur & Sari, Ramazan, 2009. "Energy consumption, economic growth, and carbon emissions: Challenges faced by an EU candidate member," Ecological Economics, Elsevier, vol. 68(6), pages 1667-1675, April.
    22. Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
    23. Cole, Matthew A., 2004. "Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages," Ecological Economics, Elsevier, vol. 48(1), pages 71-81, January.
    24. Narayan, Paresh Kumar & Narayan, Seema, 2010. "Carbon dioxide emissions and economic growth: Panel data evidence from developing countries," Energy Policy, Elsevier, vol. 38(1), pages 661-666, January.
    25. Shahbaz, Muhammad & Khraief, Naceur & Uddin, Gazi Salah & Ozturk, Ilhan, 2014. "Environmental Kuznets curve in an open economy: A bounds testing and causality analysis for Tunisia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 325-336.
    26. Lau, Lin-Sea & Choong, Chee-Keong & Eng, Yoke-Kee, 2014. "Investigation of the environmental Kuznets curve for carbon emissions in Malaysia: Do foreign direct investment and trade matter?," Energy Policy, Elsevier, vol. 68(C), pages 490-497.
    27. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237.
    28. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    29. Baum, Christopher F., 2004. "A review of Stata 8.1 and its time series capabilities," International Journal of Forecasting, Elsevier, vol. 20(1), pages 151-161.
    30. Jalil, Abdul & Mahmud, Syed F., 2009. "Environment Kuznets curve for CO2 emissions: A cointegration analysis for China," Energy Policy, Elsevier, vol. 37(12), pages 5167-5172, December.
    31. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    32. Shafik, Nemat, 1994. "Economic Development and Environmental Quality: An Econometric Analysis," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 757-773, Supplemen.
    33. Ansuategi, Alberto & Escapa, Marta, 2002. "Economic growth and greenhouse gas emissions," Ecological Economics, Elsevier, vol. 40(1), pages 23-37, January.
    34. Kearsley, Aaron & Riddel, Mary, 2010. "A further inquiry into the Pollution Haven Hypothesis and the Environmental Kuznets Curve," Ecological Economics, Elsevier, vol. 69(4), pages 905-919, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pata, Ugur Korkut & Kartal, Mustafa Tevfik & Erdogan, Sinan & Sarkodie, Samuel Asumadu, 2023. "The role of renewable and nuclear energy R&D expenditures and income on environmental quality in Germany: Scrutinizing the EKC and LCC hypotheses with smooth structural changes," Applied Energy, Elsevier, vol. 342(C).
    2. Sinha, Avik & Sengupta, Tuhin, 2019. "Impact of Energy Mix on Nitrous Oxide Emissions: An Environmental Kuznets Curve approach for APEC countries," MPRA Paper 100091, University Library of Munich, Germany.
    3. Jian Xue & Zeeshan Rasool & Raima Nazar & Ahmad Imran Khan & Shaukat Hussain Bhatti & Sajid Ali, 2021. "Revisiting Natural Resources—Globalization-Environmental Quality Nexus: Fresh Insights from South Asian Countries," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    4. Naeem, Muhammad Abubakr & Appiah, Michael & Taden, John & Amoasi, Richard & Gyamfi, Bright Akwasi, 2023. "Transitioning to clean energy: Assessing the impact of renewable energy, bio-capacity and access to clean fuel on carbon emissions in OECD economies," Energy Economics, Elsevier, vol. 127(PA).
    5. Chun Liu & Gui-hua Nie, 2021. "Identifying the Driving Factors of Food Nitrogen Footprint in China, 2000–2018: Econometric Analysis of Provincial Spatial Panel Data by the STIRPAT Model," Sustainability, MDPI, vol. 13(11), pages 1-23, May.
    6. Gao, Jinchao & Hassan, Muhammad Shahid & Kalim, Rukhsana & Sharif, Arshian & Alkhateeb, Tarek Tawfik Yousef & Mahmood, Haider, 2023. "The role of clean and unclean energy resources in inspecting N-shaped impact of industrial production on environmental quality: A case of high polluting economies," Resources Policy, Elsevier, vol. 80(C).
    7. Yu Hao & Shang Gao & Yunxia Guo & Zhiqiang Gai & Haitao Wu, 2021. "Measuring the nexus between economic development and environmental quality based on environmental Kuznets curve: a comparative study between China and Germany for the period of 2000–2017," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16848-16873, November.
    8. Eyup Dogan & Nigar Taspinar & Korhan K Gokmenoglu, 2019. "Determinants of ecological footprint in MINT countries," Energy & Environment, , vol. 30(6), pages 1065-1086, September.
    9. Abbas Ali Chandio & Fayyaz Ahmad & Ghulam Raza Sargani & Asad Amin & Martinson Ankrah Twumasi, 2022. "Analyzing the effective role of formal credit and technological development for rice cultivation," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 683-711, June.
    10. Zambrano-Monserrate, Manuel A. & Silva-Zambrano, Carlos A. & Davalos-Penafiel, Jose L. & Zambrano-Monserrate, Andrea & Ruano, Maria Alejandra, 2018. "Testing environmental Kuznets curve hypothesis in Peru: The role of renewable electricity, petroleum and dry natural gas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 4170-4178.
    11. Azad Haider & Muhammad Iftikhar ul Husnain & Wimal Rankaduwa & Farzana Shaheen, 2021. "Nexus between Nitrous Oxide Emissions and Agricultural Land Use in Agrarian Economy: An ARDL Bounds Testing Approach," Sustainability, MDPI, vol. 13(5), pages 1-19, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Onafowora, Olugbenga A. & Owoye, Oluwole, 2014. "Bounds testing approach to analysis of the environment Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 44(C), pages 47-62.
    2. Azad Haider & Muhammad Iftikhar ul Husnain & Wimal Rankaduwa & Farzana Shaheen, 2021. "Nexus between Nitrous Oxide Emissions and Agricultural Land Use in Agrarian Economy: An ARDL Bounds Testing Approach," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    3. Bekhet, Hussain Ali & Othman, Nor Salwati, 2018. "The role of renewable energy to validate dynamic interaction between CO2 emissions and GDP toward sustainable development in Malaysia," Energy Economics, Elsevier, vol. 72(C), pages 47-61.
    4. Zambrano-Monserrate, Manuel A. & Silva-Zambrano, Carlos A. & Davalos-Penafiel, Jose L. & Zambrano-Monserrate, Andrea & Ruano, Maria Alejandra, 2018. "Testing environmental Kuznets curve hypothesis in Peru: The role of renewable electricity, petroleum and dry natural gas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 4170-4178.
    5. Saboori, Behnaz & Sulaiman, Jamalludin & Mohd, Saidatulakmal, 2012. "Economic growth and CO2 emissions in Malaysia: A cointegration analysis of the Environmental Kuznets Curve," Energy Policy, Elsevier, vol. 51(C), pages 184-191.
    6. Azad Haider & Wimal Rankaduwa & Muhammad Iftikhar ul Husnain & Farzana Shaheen, 2022. "Nexus between Agricultural Land Use, Economic Growth and N 2 O Emissions in Canada: Is There an Environmental Kuznets Curve?," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    7. Al Mamun, Md. & Sohag, Kazi & Hannan Mia, Md. Abdul & Salah Uddin, Gazi & Ozturk, Ilhan, 2014. "Regional differences in the dynamic linkage between CO2 emissions, sectoral output and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 1-11.
    8. Tiba, Sofien & Omri, Anis, 2017. "Literature survey on the relationships between energy, environment and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 1129-1146.
    9. Shahbaz, Muhammad & Hye, Qazi Muhammad Adnan & Tiwari, Aviral Kumar & Leitão, Nuno Carlos, 2013. "Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 109-121.
    10. Anh-Tu Nguyen & Shih-Hao Lu & Phuc Thanh Thien Nguyen, 2021. "Validating and Forecasting Carbon Emissions in the Framework of the Environmental Kuznets Curve: The Case of Vietnam," Energies, MDPI, vol. 14(11), pages 1-38, May.
    11. Faridul, Islam & Muhammad, Shahbaz, 2012. "Is There an Environmental Kuznets Curve for Bangladesh?," MPRA Paper 38490, University Library of Munich, Germany, revised 30 Apr 2012.
    12. Ahmad, Ashfaq & Zhao, Yuhuan & Shahbaz, Muhammad & Bano, Sadia & Zhang, Zhonghua & Wang, Song & Liu, Ya, 2016. "Carbon emissions, energy consumption and economic growth: An aggregate and disaggregate analysis of the Indian economy," Energy Policy, Elsevier, vol. 96(C), pages 131-143.
    13. Miloud Lacheheb & A. S. Abdul Rahim & Abdalla Sirag, 2015. "Economic Growth and Carbon Dioxide Emissions: Investigating the Environmental Kuznets Curve Hypothesis in Algeria," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 1125-1132.
    14. Kanjilal, Kakali & Ghosh, Sajal, 2013. "Environmental Kuznet’s curve for India: Evidence from tests for cointegration with unknown structuralbreaks," Energy Policy, Elsevier, vol. 56(C), pages 509-515.
    15. Muhammad, Shahbaz & Lean, Hooi Hooi & Muhammad, Shahbaz Shabbir, 2011. "Environmental Kuznets Curve and the role of energy consumption in Pakistan," MPRA Paper 34929, University Library of Munich, Germany, revised 22 Nov 2011.
    16. Shahbaz, Muhammad & Haouas, Ilham & Hoang, Thi Hong Van, 2019. "Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?," Emerging Markets Review, Elsevier, vol. 38(C), pages 197-218.
    17. Muhammad Shahbaz & Avik Sinha, 2019. "Environmental Kuznets curve for CO2emissions: a literature survey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 106-168, January.
    18. Shahbaz, Muhammad & Salah Uddin, Gazi & Ur Rehman, Ijaz & Imran, Kashif, 2014. "Industrialization, electricity consumption and CO2 emissions in Bangladesh," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 575-586.
    19. Bastola, Umesh & Sapkota, Pratikshya, 2015. "Relationships among energy consumption, pollution emission, and economic growth in Nepal," Energy, Elsevier, vol. 80(C), pages 254-262.
    20. Ali, Wajahat & Abdullah, Azrai & Azam, Muhammad, 2017. "Re-visiting the environmental Kuznets curve hypothesis for Malaysia: Fresh evidence from ARDL bounds testing approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 990-1000.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:natres:v:41:y:2017:i:2:p:119-127. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1477-8947 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.