TY - UNPB

T1 - A Neural Network Approach to the Environmental Kuznets Curve

AU - Bennedsen, Mikkel

AU - Hillebrand, Eric

AU - Jensen, Sebastian Mathias

PY - 2022/5

Y1 - 2022/5

N2 - We investigate the relationship between per capita gross domestic product and per capita carbon dioxide emissions using national-level panel data for the period 1960-2018. We propose a novel semiparametric panel data methodology that combines country and time fixed effects with a nonparametric neural network regression component. Globally and for the regions OECD and Asia, we find evidence of an inverse U-shaped relationship, often referred to as an environmental Kuznets curve (EKC). For OECD, the EKC-shape disappears when using consumption-based emissions data, suggesting the EKC-shape observed for OECD is driven by emissions exports. For Asia, the EKC-shape becomes even more pronounced when using consumption-based emissions data and exhibits an earlier turning point.

AB - We investigate the relationship between per capita gross domestic product and per capita carbon dioxide emissions using national-level panel data for the period 1960-2018. We propose a novel semiparametric panel data methodology that combines country and time fixed effects with a nonparametric neural network regression component. Globally and for the regions OECD and Asia, we find evidence of an inverse U-shaped relationship, often referred to as an environmental Kuznets curve (EKC). For OECD, the EKC-shape disappears when using consumption-based emissions data, suggesting the EKC-shape observed for OECD is driven by emissions exports. For Asia, the EKC-shape becomes even more pronounced when using consumption-based emissions data and exhibits an earlier turning point.

KW - Territorial carbon dioxide emissions

KW - Consumption-based carbon dioxide emissions

KW - Environmental Kuznets curve

KW - Climate econometrics

KW - Panel data

KW - Machine learning

KW - Neural networks

M3 - Working paper

T3 - CREATES Research Paper

BT - A Neural Network Approach to the Environmental Kuznets Curve

PB - Aarhus Universitet

CY - Aarhus

ER -