Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/fem/femwpa/2008.50.html
   My bibliography  Save this paper

The Impact of Urbanization on CO2 Emissions: Evidence from Developing Countries

Author

Listed:
  • Inmaculada Martínez-Zarzoso

    (Universität Göttingen)

Abstract
This paper analyzes the impact of urbanization on CO2 emissions in developing countries. In this study we treat population as a predictor in the model, instead of assuming a unitary elasticity of emissions with respect to population growth. We contribute to the existing literature by examining the effect of urbanization, taking into account the presence of heterogeneity in the sample of countries and testing for the stability of the estimated elasticities over time. The sample covers the period from 1975 through 2005 for different groups of countries, classified according to their income levels. Our results show that, whereas the impact of population growth on emissions is above unity and only slightly different for upper, middle, and low-income countries, additional demographic variables, namely, urbanization, demonstrate a very different impact on emissions for low and lower-middle-income countries and upper-middle income countries. For the first set of countries, the elasticity, emission-urbanization, is higher than unity, whereas in the second group, the elasticity is 0.72, which is in accordance with the higher environmental impact observed in less developed regions. However, in upper-middle income countries and highly developed countries, the elasticity, emission-urbanization, is negative. The heterogeneous impact of urbanization on CO2 emissions should therefore be taken into account in future discussions of climate change policies.

Suggested Citation

  • Inmaculada Martínez-Zarzoso, 2008. "The Impact of Urbanization on CO2 Emissions: Evidence from Developing Countries," Working Papers 2008.50, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2008.50
    as

    Download full text from publisher

    File URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2008-050.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Shi, Anqing, 2003. "The impact of population pressure on global carbon dioxide emissions, 1975-1996: evidence from pooled cross-country data," Ecological Economics, Elsevier, vol. 44(1), pages 29-42, February.
    2. Inmaculada Martínez-Zarzoso & Aurelia Bengochea-Morancho & Rafael Morales-Lage, 2007. "The impact of population on CO 2 emissions: evidence from European countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(4), pages 497-512, December.
    3. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    4. Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 401-416, November.
    5. Bruno, Giovanni S.F., 2005. "Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models," Economics Letters, Elsevier, vol. 87(3), pages 361-366, June.
    6. Bun, Maurice J. G. & Kiviet, Jan F., 2003. "On the diminishing returns of higher-order terms in asymptotic expansions of bias," Economics Letters, Elsevier, vol. 79(2), pages 145-152, May.
    7. York, Richard & Rosa, Eugene A. & Dietz, Thomas, 2003. "STIRPAT, IPAT and ImPACT: analytic tools for unpacking the driving forces of environmental impacts," Ecological Economics, Elsevier, vol. 46(3), pages 351-365, October.
    8. Stern , David I., 1998. "Progress on the environmental Kuznets curve?," Environment and Development Economics, Cambridge University Press, vol. 3(2), pages 173-196, May.
    9. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    10. Liddle, Brantley & Lung, Sidney, 2010. "Age-Structure, Urbanization, and Climate Change in Developed Countries: Revisiting STIRPAT for Disaggregated Population and Consumption-Related Environmental Impacts," MPRA Paper 59579, University Library of Munich, Germany.
    11. Jones, Donald W., 1991. "How urbanization affects energy-use in developing countries," Energy Policy, Elsevier, vol. 19(7), pages 621-630, September.
    12. James Cramer, 1998. "Population growth and air quality in California," Demography, Springer;Population Association of America (PAA), vol. 35(1), pages 45-56, February.
    13. Annegrete Bruvoll & Hege Medin, 2003. "Factors Behind the Environmental Kuznets Curve. A Decomposition of the Changes in Air Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(1), pages 27-48, January.
    14. Stern, David I., 2002. "Explaining changes in global sulfur emissions: an econometric decomposition approach," Ecological Economics, Elsevier, vol. 42(1-2), pages 201-220, August.
    15. World Bank, 2007. "World Development Indicators 2007," World Bank Publications - Books, The World Bank Group, number 8150.
    16. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 68(1), pages 53-78, July.
    17. repec:bla:obuest:v:61:y:1999:i:0:p:631-52 is not listed on IDEAS
    18. Marco Alfo & Giovanni Trovato & Robert J. Waldmann, 2008. "Testing for country heterogeneity in growth models using a finite mixture approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(4), pages 487-514.
    19. Wayne DeSarbo & William Cron, 1988. "A maximum likelihood methodology for clusterwise linear regression," Journal of Classification, Springer;The Classification Society, vol. 5(2), pages 249-282, September.
    20. Choi, In, 2001. "Unit root tests for panel data," Journal of International Money and Finance, Elsevier, vol. 20(2), pages 249-272, April.
    21. Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May.
    22. Michel Wedel & Wayne DeSarbo, 1995. "A mixture likelihood approach for generalized linear models," Journal of Classification, Springer;The Classification Society, vol. 12(1), pages 21-55, March.
    23. Claeskens,Gerda & Hjort,Nils Lid, 2008. "Model Selection and Model Averaging," Cambridge Books, Cambridge University Press, number 9780521852258.
    24. Matthew A. Cole & Eric Neumayer, 2003. "Examining the Impact of Demographic Factors On Air Pollution," Labor and Demography 0312005, University Library of Munich, Germany, revised 13 May 2004.
    25. Karen Ehrhardt‐Martinez & Edward M. Crenshaw & J. Craig Jenkins, 2002. "Deforestation and the Environmental Kuznets Curve: A Cross‐National Investigation of Intervening Mechanisms," Social Science Quarterly, Southwestern Social Science Association, vol. 83(1), pages 226-243, March.
    26. Roger Perman & David I. Stern, 2003. "Evidence from panel unit root and cointegration tests that the Environmental Kuznets Curve does not exist," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(3), pages 325-347, September.
    27. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    28. G. S. Maddala & Shaowen Wu, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 631-652, November.
    29. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    30. Borghesi, Simone & Vercelli, Alessandro, 2003. "Sustainable globalisation," Ecological Economics, Elsevier, vol. 44(1), pages 77-89, February.
    31. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    Full references (including those not matched with items on IDEAS)

    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. Inmaculada Martínez-Zarzoso, 2009. "A General Framework for Estimating CO2 Emissions," Ibero America Institute for Econ. Research (IAI) Discussion Papers 180, Ibero-America Institute for Economic Research.
    2. Inmaculada Martínez-Zarzoso & Aurelia Bengochea-Morancho & Rafael Morales-Lage, 2007. "The impact of population on CO 2 emissions: evidence from European countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(4), pages 497-512, December.
    3. Fang, Wen Shwo & Miller, Stephen M. & Yeh, Chih-Chuan, 2012. "The effect of ESCOs on energy use," Energy Policy, Elsevier, vol. 51(C), pages 558-568.
    4. Poumanyvong, Phetkeo & Kaneko, Shinji, 2010. "Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis," Ecological Economics, Elsevier, vol. 70(2), pages 434-444, December.
    5. Charfeddine, Lanouar & Mrabet, Zouhair, 2017. "The impact of economic development and social-political factors on ecological footprint: A panel data analysis for 15 MENA countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 138-154.
    6. Zhang, Chuanguo & Tan, Zheng, 2016. "The relationships between population factors and China's carbon emissions: Does population aging matter?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1018-1025.
    7. Miguel Rodríguez & Yolanda Pena-Boquete, 2013. "Mishandling carbon intensities," Working Papers 1302, Universidade de Vigo, Departamento de Economía Aplicada.
    8. Rodríguez, Miguel & Pena-Boquete, Yolanda & Pardo-Fernández, Juan Carlos, 2016. "Revisiting Environmental Kuznets Curves through the energy price lens," Energy Policy, Elsevier, vol. 95(C), pages 32-41.
    9. Long, X. & Ji, Xi & Ulgiati, S., 2017. "Is urbanization eco-friendly? An energy and land use cross-country analysis," Energy Policy, Elsevier, vol. 100(C), pages 387-396.
    10. Salim, Ruhul A. & Shafiei, Sahar, 2014. "Urbanization and renewable and non-renewable energy consumption in OECD countries: An empirical analysis," Economic Modelling, Elsevier, vol. 38(C), pages 581-591.
    11. Nicole Grunewald & Inmaculada Martínez-Zarzoso, 2011. "How well did the Kyoto Protocol work? A dynamic-GMM approach with external instruments," Ibero America Institute for Econ. Research (IAI) Discussion Papers 212, Ibero-America Institute for Economic Research.
    12. Jie He, 2007. "Is the Environmental Kuznets Curve hypothesis valid for developing countries? A survey," Cahiers de recherche 07-03, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    13. Roxana Pincheira & Felipe Zuniga & Pablo Neudorfer, 2021. "Carbon Kuznets curve: a dynamic empirical approach for a panel data," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5523-5541, December.
    14. WenShwo Fang & Stephen M. Miller, 2013. "The effect of ESCO s on carbon dioxide emissions," Applied Economics, Taylor & Francis Journals, vol. 45(34), pages 4796-4804, December.
    15. Massimiliano Mazzanti & Roberto Zoboli, 2008. "Waste Generation, Incineration and Landfill Diversion. De-coupling Trends, Socio-Economic Drivers and Policy Effectiveness in the EU," Working Papers 2008.94, Fondazione Eni Enrico Mattei.
    16. Niklas Potrafke, 2012. "Political cycles and economic performance in OECD countries: empirical evidence from 1951–2006," Public Choice, Springer, vol. 150(1), pages 155-179, January.
    17. Shafiei, Sahar & Salim, Ruhul A., 2014. "Non-renewable and renewable energy consumption and CO2 emissions in OECD countries: A comparative analysis," Energy Policy, Elsevier, vol. 66(C), pages 547-556.
    18. Kais, Saidi & Sami, Hammami, 2016. "An econometric study of the impact of economic growth and energy use on carbon emissions: Panel data evidence from fifty eight countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1101-1110.
    19. Wang, Kuan-Min, 2012. "Modelling the nonlinear relationship between CO2 emissions from oil and economic growth," Economic Modelling, Elsevier, vol. 29(5), pages 1537-1547.
    20. Potrafke, Niklas, 2010. "The growth of public health expenditures in OECD countries: Do government ideology and electoral motives matter?," Journal of Health Economics, Elsevier, vol. 29(6), pages 797-810, December.

    More about this item

    Keywords

    CO2 Emissions; Developing Countries; Panel Data; Population Growth; Urbanization;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:fem:femwpa:2008.50. 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: Alberto Prina Cerai (email available below). General contact details of provider: https://edirc.repec.org/data/feemmit.html .

    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.