The dynamics of delinking in industrial emissions: The role of productivity, trade and R&D

Par Giovanni Marin, Massimiliano Mazzanti
This paper provides new empirical evidence on delinking / Environmental Kuznets Curves (EKC) for greenhouse gases and other air pollutant emissions in Italy. We analysed a panel dataset based on the Italian NAMEA for 1990-2005 with a specific focus on industry. We integrated the emission-income NAMEA with data on trade openness and R&D expenditures. The highly disaggregated dataset provides a large heterogeneity and can help to overcome the shortcomings of the usual approach to EKC based on cross-country data. We use in this paper CO2, SOx, NOx and PM10 as objects of investigation. We use as empirical models of reference both a standard EKC model and a STIRPAT/IPAT model. Our results show that looking at sector evidence, both decupling and then eventually re-coupling trends could emerge along the path of economic development. The analysis of how stagnation periods affect environmental performances is also of interest.
JEL Codes: C230, O400, Q550, Q560
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