A structural nonparametric reappraisal of the CO2 emissions-income relationship

Relying on a structural nonparametric estimation, we show that CO2 emissions clearly increase with income at low income levels. For higher income levels, we observe a decreasing relationship, though not significant. We also find that CO2 emissions monotonically increases with energy use at a decreasing rate.

Keywords: Nonparametric triangular systems, EKC; Energy use; CO2 emissions

JEL Classification: C14; O13

UNU-MERIT Working Papers ISSN 1871-9872