Country-specific Environmental Kuznets Curves in OECD countries. A Cross-Country Time Series Approach

The environmental Kuznets curve (EKC) hypothesis states that there is an inverted U-shape relationship between some indicators of environmental degradation and income per capita. This implies that after a certain turning-point in income, the pollution indicator starts to improve with rising income per capita. This paper analyses the presence of an EKC for Sulfur Dioxide. The technique used here is the Swamy’s Random Coefficient model that allows the estimation of country specific Turning Points. This Study provides evidence that supports the presence of an EKC among most of the world’s wealthiest countries (but not all of them).