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Environmental Kuznets Curve Public Opinion & Input Politics Johan Rock & Henrik Werenskiold.

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Presentation on theme: "Environmental Kuznets Curve Public Opinion & Input Politics Johan Rock & Henrik Werenskiold."— Presentation transcript:

1 Environmental Kuznets Curve Public Opinion & Input Politics Johan Rock & Henrik Werenskiold

2 EKC Theory The relationship between environmental degradation and economical growth (GDP per capita) can be represented as an inverted U-shaped curve:

3 Stern’s Regression Model (2003) ln  E/P  it =  i + y i +  1 ln  GDP/P  it +  2 ln  GDP/P  2 it +  it P = population i = country t = time There may be an inverted U-shaped relation between urban ambient concentrations of some pollutants and income though this should be tested with more rigorous time series or panel data methods. (2003) Will this inverted U-shaped relation be stronger in democracies than authoritarian regimes?

4 Our Regression Model ln  E/P  it =  i + y i + (  dg +  1 ln  GDP/P  it  + (  dg 2 +  2 ln  GDP/P  2 it  + control variable +  it P = population i = country t = time d = democracy/ non-democracy dummy variable A dummy variable for democracy has been added to the regression model in order to investigate whether there is a distinction between democracies and non-democracies Is it possible to use a democracy index instead of dummy variable? Is it feasible to use oil production as a control variable?

5 Mechanisms of the EKC Transition from industrial to a service orientated economy. Export of polluting industrial processes abroad. Technological advances, generating less pollution Higher awareness about the detrimental effects of pollution among voters. – Can the analysis confirm this? MV preferences

6 Data Same data as used in the Stern investigation focusing on sulphur dioxide (SO2) concentrations in urban areas. i = 40 countries t = 40 years Collecting data from World Value Survey (WVS)

7 Critique Non-democracy – data on emissions is more likely to be difficult to find and one would have to question its validity. Non-democracies generally tend to be less affluent than democracies. Therefore we question whether authoritarian countries are rich enough to be included in the study. The robustness of the EKC curve itself has been questioned by researchers.


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