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Nonstationarity in the Specification of the Environmental Kuznets Curve

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  • Zapata, Hector O.
  • Paudel, Krishna P.

Abstract

Numerous studies have addressed the question of the econometric specification of the Environmental Kuznets Curve (EKC). This paper adds preliminary results on nonstationarity and its effect on functional form using a panel data set for the U.S. by state from 1929 to 1994. It is found that unit-root tests strongly support a unit root in pollutants (sulfur dioxide and nitrogen oxide) and income when testing individual states. The results from panel data unit root tests provide mixed evidence about nonstationarity in EKC data.

Suggested Citation

  • Zapata, Hector O. & Paudel, Krishna P., 2005. "Nonstationarity in the Specification of the Environmental Kuznets Curve," 2005 Annual meeting, July 24-27, Providence, RI 19270, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19270
    DOI: 10.22004/ag.econ.19270
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    References listed on IDEAS

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