6533b823fe1ef96bd127f45c

RESEARCH PRODUCT

Threshold cointegration and nonlinear adjustment between CO2 and income: The Environmental Kuznets Curve in Spain, 1857–2007

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abstract Article history:Received 9 March 2011Received in revised form 24 February 2012Accepted 2 March 2012Available online 14 March 2012JEL classification:C2Q4Keywords:Environmental Kuznets CurveCO 2 emissionsNonlinear relationshipThreshold cointegration Inthispaper wemodelthe long-run relationship between per capita CO 2 and per capita income for the Spanisheconomy over the period 1857–2007. According to the Environmental Kuznets Curve (ECK) the relationshipbetween the two variables has an inverted-U shape. However, previous studies for the Spanish economy onlyconsidered the existence of linear relationships. Such an approach may lack flexibility to detect the trueshape of the relationship. Our empirical methodology accounts for a possible non-linear relationship throughthe use of threshold cointegration techniques. Our results confirm the non-linearity of the link between thetwo above-mentioned variables pointing to the existence of an Environmental Kuznets Curve for the Spanishcase.© 2012 Elsevier B.V. All rights reserved.