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Land capital and emissions convergence in an extended Green Solow model

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  • Guilló, María Dolores
  • Magalhães, Manuela

Abstract

The main purpose of this paper is to analyze the contribution of land capital to the growth of emissions and income per capita in the long run. We collect new satellite data from the Earth Observatory to obtain estimates of the Enhanced Vegetation Index at the country level for the period 2000–2015. We use these data and the World Bank wealth estimates of natural capital to calibrate and empirically test an extension of the Green Solow model with land degradation and land capital investment. We show that the model is consistent with the cross-country variation in growth rates of carbon emissions per capita and find that there is convergence at the global level, with the contribution of land capital investment to the growth of emissions being negative and significant in all specifications.

Suggested Citation

  • Guilló, María Dolores & Magalhães, Manuela, 2023. "Land capital and emissions convergence in an extended Green Solow model," Environment and Development Economics, Cambridge University Press, vol. 28(1), pages 25-46, February.
    • Handle: RePEc:cup:endeec:v:28:y:2023:i:1:p:25-46_2
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