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Is the Green Solow Model Valid for $$\hbox {CO}_{2}$$ CO 2 Emissions in the European Union?

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  • Wan-Jiun Chen

    (Chinese Culture University)

Abstract

This paper addresses the $$\hbox {CO}_{2}$$ CO 2 emission patterns of the European Union from 1950 to 2010, and examines the validity of the Green Solow model, which simulates $$\hbox {CO}_{2}$$ CO 2 emissions growth by including only Solow forces and assuming emission intensity growth to be exogenous and constant. This study verifies that an environmental Kuznets curve (EKC) trajectory exists for per capita $$\hbox {CO}_{2}$$ CO 2 emissions in the European Union, that emission intensity growth is decreasing over time, and that the decreasing intensity growth reflects variations of the dependent variable in the specifications of the Green Solow model. The critique by Stefanski (On the mechanics of the Green Solow model. OxCarre Research Paper 47, OxCarre & Laval University, Oxford, 2013) of the Green Solow model assumption of exogenous and constant intensity growth is validated. The EKC is defined as the emissions plotted against income and emission intensity is defined as the ratio of emissions to income. The EKC and emission intensity share identical definitions and similar transition trajectories over time. The transition of the EKC trajectory and decline in emission intensity growth began before worldwide attention was focused on global warming.

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  • Wan-Jiun Chen, 2017. "Is the Green Solow Model Valid for $$\hbox {CO}_{2}$$ CO 2 Emissions in the European Union?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(1), pages 23-45, May.
    • Handle: RePEc:kap:enreec:v:67:y:2017:i:1:d:10.1007_s10640-015-9975-0
    DOI: 10.1007/s10640-015-9975-0
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    References listed on IDEAS

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    Cited by:

    1. Julien Wolfersberger, 2019. "Growth and the environment: taking into account structural transformation," Working Papers hal-02156298, HAL.
    2. Wan-Jiun Chen, 2022. "Toward Sustainability: Dynamics of Total Carbon Dioxide Emissions, Aggregate Income, Non-Renewable Energy, and Renewable Power," Sustainability, MDPI, vol. 14(5), pages 1-27, February.

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    More about this item

    Keywords

    Mann–Kendall trend test; Green Solow model; Convergence; $$hbox {CO}_{2}$$ CO 2 emissions; Emission intensity growth; Macroeconomics of climate change;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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