Economic Development and Environmental Degradation: Testing the Existence of an Environmental Kuznets Curve At Regional Level, ERSA conference papers ersa06p527, European Regional Science Association 2006

Economic Development and Environmental Degradation: Testing the Existence of an Environmental Kuznets Curve At Regional Level, ERSA conference papers ersa06p527, European Regional Science Association (2006).

This paper uses a dynamic panel data for 23 OECD and 50 non-OECD countries for the time period 1960-1990 in order to estimate the relationship between economic development (in the form of GDP) and environmental pollution (in the form of sulphur emissions). Panel data econometric techniques are applied for performing our empirical estimation. The analysis shows significant differences between the most industrialized countries and the rest of the countries considered. This implies that policies to control pollution have to take into consideration the specific economic situation as well as the structure of the industrial and the business sectors in each region. Finally, in terms of policy implications, the study discusses the main abatement options for sulphur reduction.