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Economic freedom and the greenhouse gas Kuznets curve

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  • Bjørnskov, Christian

Abstract

If and how economic freedom is associated with environmental damage remains an open question. In this paper, I therefore combine data on greenhouse gas emissions and GDP per capita with the Economic Freedom of the World indices to test if economic freedom affects emissions. I do so in the context of estimating a standard Environmental Kuznets Curve in which economic freedom can both reduce overall levels as well as shift the shape of the curve. The results suggest that economic freedom reduces greenhouse gas emissions but also shifts the top point of the Kuznets Curve to the left.

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  • Bjørnskov, Christian, 2024. "Economic freedom and the greenhouse gas Kuznets curve," European Journal of Political Economy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:poleco:v:82:y:2024:i:c:s0176268024000326
    DOI: 10.1016/j.ejpoleco.2024.102530
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    More about this item

    Keywords

    economic freedom; Environmental performance; Greenhouse gases; Kuznets curves;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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