The Environmental Kuznets Curve across Australian states and territories

Sefa Awaworyi Churchill, John Inekwe, Kris Ivanovski, Russell Smyth

Research output: Contribution to journalArticleResearchpeer-review

15 Citations (Scopus)

Abstract

We test the Environmental Kuznets Curves (EKC) hypothesis for a panel of eight Australian states and territories using non-parametric panel estimation over the period 1990 to 2017. A feature of our non-parametric estimation method is that it allows carbon dioxide (CO2) emissions to evolve over time in the form of an unknown functional form with confidence bands constructed using a wild bootstrapping method. This framework has the advantage that we can plot the time-varying relationship between Gross State Product (GSP) and CO2 emissions. The non-parametric local linear estimates for GSP are consistent with a conventional inverted U-shaped EKC, which peaks in 2010 and declines thereafter. The peak coincides with a significant policy shift in Australia's commitment to reducing CO2 emissions, whereby, in 2010, the Australian Government, and subsequently the states and territories, pledged to reduce CO2 emissions to 5% below 2000 levels by 2020 under the United Nations Framework Convention on Climate Change (UNFCCC) (the Cancun Agreement).

Original languageEnglish
Article number104869
Number of pages11
JournalEnergy Economics
Volume90
DOIs
Publication statusPublished - Aug 2020

Keywords

  • Australia
  • CO2 emissions
  • Environmental Kuznets Curve

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