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Analysis of the Environmental Kuznets Curve using Finite Mixture Modeling
Örebro University, Örebro University School of Business.
2013 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

While a study of cross-sectional data or panel data can give more general conclusions about the EKC theory, the suspicions of heterogeneity bring doubts for the analyses based on the multiple regression assumptions.  This paper attempts to explicitly incorporate the heterogeneity by using finite mixture models. Two four-component models are applied to two panel data consisting of more than 120 countries with different time spans. Both models provide consistent clustering results and show estimates which support the suspicion of heterogeneity. Furthermore, all components from the two models indicate inverted-U relationships between carbon dioxide emissions per capita and GDP per capita. The analyses in this paper support EKC relationships which seem to differ among countries.

Place, publisher, year, edition, pages
2013. , p. 50
Keywords [en]
Carbon dioxide, EM algorithm, Environmental Kuznets Curve (EKC), finite mixture models (FMM), fixed effect, latent class regression, panel data
National Category
Probability Theory and Statistics
Identifiers
URN: urn:nbn:se:oru:diva-30677OAI: oai:DiVA.org:oru-30677DiVA, id: diva2:645393
Subject / course
Statistik
Supervisors
Examiners
Available from: 2013-10-11 Created: 2013-09-04 Last updated: 2017-10-17Bibliographically approved

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CiteExportLink to record
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