Social capital and CO2 emission—output relations: a panel analysis

The present paper examines the mitigating effect of social capital on the environmental Kuznets curve (EKC) for CO2 emissions using a panel data of 69 developed and developing countries. Adopting generalised method of moments (GMM) estimators, the paper finds evidence substantiating the presence of...

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Main Authors: Ibrahim, Mansor H., Law, Siong Hook
Format: Article
Published: Elsevier 2014
Online Access:http://psasir.upm.edu.my/id/eprint/35398/
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author Ibrahim, Mansor H.
Law, Siong Hook
author_facet Ibrahim, Mansor H.
Law, Siong Hook
author_sort Ibrahim, Mansor H.
building UPM Institutional Repository
collection Online Access
description The present paper examines the mitigating effect of social capital on the environmental Kuznets curve (EKC) for CO2 emissions using a panel data of 69 developed and developing countries. Adopting generalised method of moments (GMM) estimators, the paper finds evidence substantiating the presence of EKC. Moreover, the evidence suggests that the pollution costs of economic development tend to be lower in countries with higher social capital reservoir. Surprisingly, there is also evidence to indicate that the income threshold point beyond which CO2 emissions decline is higher in countries with higher social capital. These results are robust to addition of alternative controlled variables in the EKC specification. Thus, in addition to policy focus on investments in environmentally friendly technology and on the use of renewable energy, investments in social capital can also mitigate the pollution effects of economic progress.
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spelling upm-353982016-01-06T03:40:08Z http://psasir.upm.edu.my/id/eprint/35398/ Social capital and CO2 emission—output relations: a panel analysis Ibrahim, Mansor H. Law, Siong Hook The present paper examines the mitigating effect of social capital on the environmental Kuznets curve (EKC) for CO2 emissions using a panel data of 69 developed and developing countries. Adopting generalised method of moments (GMM) estimators, the paper finds evidence substantiating the presence of EKC. Moreover, the evidence suggests that the pollution costs of economic development tend to be lower in countries with higher social capital reservoir. Surprisingly, there is also evidence to indicate that the income threshold point beyond which CO2 emissions decline is higher in countries with higher social capital. These results are robust to addition of alternative controlled variables in the EKC specification. Thus, in addition to policy focus on investments in environmentally friendly technology and on the use of renewable energy, investments in social capital can also mitigate the pollution effects of economic progress. Elsevier 2014-01 Article PeerReviewed Ibrahim, Mansor H. and Law, Siong Hook (2014) Social capital and CO2 emission—output relations: a panel analysis. Renewable and Sustainable Energy Reviews, 29. pp. 528-534. ISSN 1364-0321; ESSN: 1879-0690 http://www.sciencedirect.com/science/article/pii/S1364032113006163 10.1016/j.rser.2013.08.076
spellingShingle Ibrahim, Mansor H.
Law, Siong Hook
Social capital and CO2 emission—output relations: a panel analysis
title Social capital and CO2 emission—output relations: a panel analysis
title_full Social capital and CO2 emission—output relations: a panel analysis
title_fullStr Social capital and CO2 emission—output relations: a panel analysis
title_full_unstemmed Social capital and CO2 emission—output relations: a panel analysis
title_short Social capital and CO2 emission—output relations: a panel analysis
title_sort social capital and co2 emission—output relations: a panel analysis
url http://psasir.upm.edu.my/id/eprint/35398/
http://psasir.upm.edu.my/id/eprint/35398/
http://psasir.upm.edu.my/id/eprint/35398/