how urbanization affects co2 emissions in malaysia the application of stirpat model we investigate the impact of urbanization on co2 emissions by applying the stochastic impacts by regression on population affluence and technology stirpat in the case of malaysia over the period of 1970q1 2011q4 empirically after testing the integrating properties of the variables using the unit root test we applied the bayer hanck combined cointegration approach to examine the cointegration relationship between the variables further we tested the robustness of the long run relationship in the presence of structural breaks using ardl bounds testing approach the causal relationship between the variables is investigated by applying the vecm granger causality test our results validate the existence of cointegration in the presence of structural breaks the empirical results exposed that economic growth is a major contributor to co2 emissions besides energy consumption raises emissions intensity and capital stock boosts energy consumption trade openness leads affluence and hence increases co2 emissions more importantly we find that the relationship between urbanization and co2 emissions is u shaped i e urbanization initially reduces co2 emissions but after a threshold level it increases co2 emissions the causality analysis suggests that the urbanization granger causes co2 emissions

international business cycles and risk sharing with uncertainty shocks and recursive preferences this paper analyzes the effects of output volatility shocks on the dynamics of consumption trade flows and the real exchange rate in a two country two good world with consumption home bias recursive preferences and complete financial markets when the risk aversion coefficient exceeds the inverse of the intertemporal substitution elasticity then an exogenous rise in a country s output volatility triggers a wealth transfer to that country to compensate for the greater riskiness of the country s output stream this risk sharing transfer raises the country s consumption lowers its trade balance and appreciates its real exchange rate in the recursive preferences framework here volatility shocks account for a non negligible share of the fluctuations of net exports net foreign assets and the real exchange rate these shocks help to explain the high empirical volatility of the real exchange rate and the disconnect between relative consumption and the real exchange rate

dynamics and determinants of energy intensity in the service sector a cross country analysis 1980 2005 we present a detailed analysis of energy intensity developments across 23 service sectors in 18 oecd countries over the period 1980 2005 we find that the shift towards a service economy has contributed to lower overall energy intensity levels in the oecd but this contribution would have been considerably larger if the service sector had realized the same degree of energy efficiency improvements as the manufacturing sector in most oecd countries energy intensity levels in services tend to decrease relatively slow especially after 1995 if we control this trend for the impact of structural changes within the services sector by means of a decomposition analysis we find that in about one third of the oecd countries energy intensity levels in services have increased over time the impact of structural changes on aggregate energy intensity dynamics in services has increased considerably after 1995 highlighting a relatively poor energy efficiency performance within a wide range of service sectors we show that the introduction of information and communication technology ict plays a potentially important role here using panel data regression analysis we find a limited role for energy prices in explaining variation in energy productivity while climate conditions clearly impact energy productivity

is there a turning point in the relationship between income and energy use and or carbon emissions abstract we analyze the effect of fuel mix model specification and the level of development on the presence and size of a turning point in the relationship between income and energy use and or carbon emissions the results indicate that fuel mix the specification for income and the level of economic development affect conclusions about whether there is a turning point in the relationship between economic activity and energy use and carbon emissions including fuel shares generally reduces the size of a turning point that is estimated from a panel that includes observations from both oecd and non oecd nations but this result varies according to the level of development for oecd nations there is limited support for a turning point in the relationship between income and per capita energy use and or carbon emissions for non oecd nations there is no turning point in the relationship between income and either energy use or carbon emissions instead the relationship is positive together the results indicate that forecasters and policy makers should not depend on a turning point in the relationship between income and energy use or carbon emissions to reduce either

what stirpat tells about effects of population and affluence on the environment abstract in the literature on the application of stirpat to environmental impacts of population and affluence the parameter estimates differ from study to study one example is the effect of population size on co 2 emissions which is concluded to be very close to 1 in some studies e g york et al 2003 while far from 1 in others e g shi 2003 what can explain these differences in results in the present paper i offer an alternative model equivalent to stirpat which explicitly specifies the different role of technology t in stirpat from ipat by the alternative model i conclude that different functional forms of stirpat can be one explanation for the difference among estimates in the studies on environmental impacts of population and affluence the alternative model can also help to determine which factors to be added in stirpat

environment and development is there a kuznets curve for co2 emissions this article re examines the relationship between growth in per capita income and environmental degradation using econometric techniques appropriate for smooth transition regressions with panel data this is a more intuitive and flexible methodology than the polynomial models widely used in the literature and it can reconcile some of the mixed results found previously the methodology is applied to carbon dioxide emissions from nonoecd countries over the period 1971 to 1997 although there is no evidence of environmental kuznets curve we find two regimes namely a low income regime where emissions accelerate with economic growth and a middle to high income regime associated with a deceleration in environmental degradation

economic development and co2 emissions a nonparametric panel approach we examine the empirical relation between co2 emissions per capita and gdp per capita during the period 1960 1996 using a panel of 100 countries relying on the nonparametric poolability test of baltagi et al baltagi b h hidalgo j li q 1996 a nonparametric test for poolability using panel data journal of econometrics 75 345 367 we find evidence of structural stability of the relationship we then specify a nonparametric panel data model with country specific effects estimation results show that this relationship is upward sloping nonparametric specification tests do not reject monotonicity but do reject the polynomial functional form which leads to the environmental kuznets curve in several studies

an econometric study of co2 emissions energy consumption income and foreign trade in turkey abstract this study attempts to empirically examine the dynamic causal relationships between carbon emissions energy consumption income and foreign trade in the case of turkey using the time series data for the period 1960 2005 this research tests the interrelationship between the variables using the bounds testing to cointegration procedure the bounds test results indicate that there exist two forms of long run relationships between the variables in the case of first form of long run relationship carbon emissions are determined by energy consumption income and foreign trade in the case of second long run relationship income is determined by carbon emissions energy consumption and foreign trade an augmented form of granger causality analysis is conducted amongst the variables the long run relationship of co2 emissions energy consumption income and foreign trade equation is also checked for the parameter stability the empirical results suggest that income is the most significant variable in explaining the carbon emissions in turkey which is followed by energy consumption and foreign trade moreover there exists a stable carbon emissions function the results also provide important policy recommendations

assessing the energy saving effect of urbanization in china based on stochastic impacts by regression on population affluence and technology stirpat model abstract the rapid urbanization process has posed great challenges to china s energy system this paper uses the stochastic impacts by regression on population affluence and technology stirpat model to evaluate the energy saving effect of china s urbanization based on provincial panel data the results suggest that 1 the urbanization induces the energy consumption with a notable negative energy saving effect 2 the heterogeneity of urbanization impact on energy consumption is analyzed in different stages of urbanization showing that the energy saving effect of urbanization follows a u shaped path 3 considering the heterogeneity of the energy saving effect of urbanization at different income levels the energy saving effect increases with income level the outcome may draw a causation picture on the relationship between energy consumption and urbanization in addition an in depth causation analysis on energy inefficiency of china s urbanization is carried out and policy recommendations are put forward accordingly

public choice and the economic analysis of anarchy a survey public choice economists began studying anarchy in the 1970s since then the amount of research on anarchy has burgeoned this article surveys the important public choice contributions to the economics of anarchy following early public choice economists many economists are researching how individuals interact without government from non public interested explanations of the creation of government to historical studies of internalizing externalities under anarchy public choice scholars are arriving at a more realistic perspective of human interaction with and without government although the economics of politics receives more attention the economics of anarchy is an important area of research in public choice

sources of production inefficiency and productivity growth in china a global data envelopment analysis abstract the current mode of production in china is extensive and inefficient and has caused great stress on both resources and the environment this paper focuses on analyzing the sources of production inefficiency and productivity growth in china here a developed slacks based measure is utilized to decompose production inefficiency into three components input inefficiency economic output inefficiency and environmental inefficiency furthermore by applying a method based on global data envelopment analysis we take a further step to analyze the key factors responsible for the change of environmental productivity during 2003 2011 from the point of view of technical progress productive scale and management level the results show that redundancy in energy and labor inputs and excessive emission of sulfur dioxide chemical oxygen demand and ammonia nitrogen are the main sources of production inefficiency in china during the sample period the efficiency in all inputs and environmental emissions has improved except for capital input efficiency which had a decreasing trend further analysis shows that the overall environmental productivity in china has begun to follow an ascending path technical progress is the most powerful contributor to china s productivity growth while the decreases in scale and management efficiency are the two main obstacles preventing productivity improvement

the environmental kuznets curve ekc theory part a concept causes and the co2 emissions case abstract the main purpose of this study is to capture the main features of the environmental kuznets curve ekc concept according to the ekc theory the process of economic growth is expected eventually to limit the environmental degradation created in the early stages of development the ekc concept leads many researchers from the early 1990s to assume that each economy should focus on its growth and any environmental problems will be eventually eliminated by the process of economic growth several studies attempt to test empirically the ekc hypothesis using data on many countries and examining various types of environmental degradation while other studies examine the underlying factors that may drive such a relationship this article reviews the evolution of the ekc concept and the possible causes of an ekc pattern like the distribution of income the international trade pollution haven hypothesis structural changes technical progress and improvements in energy efficiency institutions and governance and consumer preferences as co2 emissions are a pollutant with global effects several studies deal with the possible ekc pattern for co2 emissions and these studies are discussed separately the various critiques on the ekc concept are reviewed in the second article of this work

the international effects of global financial uncertainty shocks abstract in this paper we study the impact of sudden rises in global financial uncertainty on small open economies to this end we extract a global factor from the realised volatilities of about 1000 risky asset returns from around the world we then analyse how shocks to this factor affect economic activity in 44 advanced and emerging small open economies by estimating local projections in a panel regression framework we find that shocks increasing global financial uncertainty have adverse consequences on output trade and unemployment while their impact on nominal variables is more heterogeneous across countries furthermore the effects are more severe in countries with a higher degree of trade or financial openness higher levels of vulnerabilities weaker institutions or during economic downturns

the rebound effect microeconomic definitions limitations and extensions abstract the rebound effect results in part from an increased consumption of energy services following an improvement in the technical efficiency of delivering those services this increased consumption offsets the energy savings that may otherwise be achieved if the rebound effect is sufficiently large it may undermine the rationale for policy measures to encourage energy efficiency the nature and magnitude of the rebound effect is the focus of long running dispute with energy economics this paper brings together previous theoretical work to provide a rigorous definition of the rebound effect to clarify key conceptual issues and to highlight the potential consequences of various assumptions for empirical estimates of the effect the focus is on the direct rebound effect for a single energy service indirect and economy wide rebound effects are not discussed beginning with khazzoom s original definition of the rebound effect we expose the limitations of three simplifying assumptions on which this definition is based first we argue that capital costs form an important part of the total cost of providing energy services and that empirical studies that estimate rebound effects from variations in energy prices are prone to bias second we argue that energy efficiency should be treated as an endogenous variable and that empirical estimates of the rebound effect may need to apply a simultaneous equation model to capture the joint determination of key variables third we explore the implications of the opportunity costs of time in the production of energy services and highlight the consequences for energy use of improved time efficiency the influence of time costs on the rebound effect and the existence of a parallel rebound effect with respect to time each of these considerations serves to highlight the difficulties in obtaining reliable estimates of the rebound effect and the different factors that need to be controlled for we discuss the implications of these findings for econometric studies and argue that several existing studies may overestimate the magnitude of the effect

estimating the rebound effect in us manufacturing energy consumption abstract the energy price shocks of the 1970s are usually assumed to have increased the search for new energy saving technologies where eventual gains in energy efficiencies will reduce the real per unit price of energy services and hence the consumption of energy will rise and partially offset the initial reduction in the usage of energy sources this is the rebound effect which is estimated for the us manufacturing sector using time series data applying the dynamic ols method dols when allowing for asymmetric price effects the rebound effect is found to be approximately 24 for the us manufacturing sector

net exports consumption volatility and international business cycle models abstract conventional two country rbc models interpret countercyclical net exports as reflecting primarily the dynamics of capital i show that quantitatively theoretical economies rely on counterfactual terms of trade effects trade fluctuations on the contrary are driven by consumption smoothing thus generating procyclical net trade in goods i then consider a class of preferences that embeds home production in a reduced form consumption volatility increases so that countercyclical net exports reflect primarily a strong relation between consumption and imports as in the data the major discrepancy between theory and data concerns the variability of international prices

risk matters the real effects of volatility shocks comment we show that the risk shock business cycle model of fernandez villaverde et al 2011 must be recalibrated because it underpredicts the targeted business cycle moments by a factor of three once a time aggregation error is corrected recalibrating the corrected model for the benchmark case of argentina the peak response and the contribution of interest rate risk shocks to business cycle volatility increase however the recalibrated model does worse in capturing the business cycle properties of net exports once an additional error in the computation of net exports is corrected

edward stringham ed anarchy state and public choice is anarchy a viable desirable form of organization of society anarchy intrigues economists as the limit of the process of privatization can all government s functions be turned over to market forces in the early 1970s winston bush led an exploration of anarchy at the public choice center at virginia tech the new book anarchy state and public choice edited by edward stringham brings together some of the old school public choice contributions with contemporary research the book consists of seven papers reprinted from gordon tullock s edited volumes explorations in the theory of anarchy and further explorations in the theory of anarchy along with six modern responses and four original retrospective prospective papers the reprinting of some of the earlier papers should provide new life into this research and the paired contemporary papers illustrate that significant progress has been made in the intervening decades a paper by winston bush from explorations on equilibrium in an anarchy model and a response by jason osborne lead off the volume bush s paper is a now familiar description of the equilibrium in an anarchy economy emphasizing the natural distribution of income resulting from comparative advantage in predation osborne offers an intriguing two part response the first examines the impact of a contract enforcer on relative well being in the bush anarchy economy while the second considers the implications of research on contingent cooperation in a prisoner s dilemma recent research emphasizes the benefits of contingent cooperation and how well developed abilities to detect cheating allow the prisoner s dilemma to be overcome without third party enforcement increasing the potential for a workable anarchy the next two papers from explorations by gordon tullock and j patrick gunning and the contemporary responses by christopher coyne and peter leeson deal with contract enforcement tullock and gunning argue that government must enforce contracts particularly deals over time or when one party has a lot at stake the replies by coyne and leeson draw

examining the determinants and the spatial nexus of city level co2 emissions in china a dynamic spatial panel analysis of china s cities abstract china now the world s top co2 emitter is facing increasingly pressure to instigate energy saving and emission reduction measures as a result great attention is being paid to the driving forces behind co2 emissions in china literature has to date however tended to exclude the city level due to a scarcity of energy statistics at that scale using gis technology and dynamic spatial panel data models and aided by spatiotemporal modeling that integrates remote sensing data and statistical data this study identifies the determinates and the spatial nexus of co2 emissions at china s city level the results show that the co2 emissions of all of china s cities increased between 1992 and 2013 with the highest co2 emission levels occurring in eastern rather than western or central china in addition an obvious spatial agglomeration effect was observed in city level co2 emissions highlighting the influence cities exert on their neighbors our empirical results also emphasize the influence that factors such as economic growth population the industrialization level capital investment and population density all exert in relation to raising co2 emissions as such the study found little evidence in support of the ekc hypothesis these results further imply that if china persists in its current development pattern the estimated factors will inevitably lead to increased co2 emissions in the long term road density and the traffic coupling factor were in contrast both found to exert strong influences to the mitigation of co2 emissions as such improving the coupling degree between the urban spatial structure of a city and its traffic organization could play an important role in reducing co2 emissions our findings merit attention from chinese policy makers as they shed new light on the path toward developing low carbon cities

economic growth and greenhouse gas emissions abstract recent empirical research has examined the relationship between certain indicators of environmental degradation and income concluding that in some cases an inverted u shaped relationship which has been called an environmental kuznets curve ekc exists between these variables unfortunately this inverted u shaped relationship does not hold for greenhouse gas emissions one explanation of the absence of ekc like behavior in greenhouse gas emissions is that greenhouse gases are special pollutants that create global not local disutility but the international nature of global warming is not the only reason that prevents de linking greenhouse gas emissions from economic growth the intergenerational nature of the negative impact of greenhouse gas emissions may have also been an important factor preventing the implementation of greenhouse gas abatement measures in the past in this paper we explore the effect that the presence of intergenerational spillovers has on the emissions income relationship we use a numerically calibrated overlapping generations model of climate economy interactions we conclude that 1 the intertemporal responsibility of the regulatory agency 2 the institutional capacity to make intergenerational transfers and 3 the presence of intergenerationally lagged impact of emissions constitute important determinants of the relationship between economic growth and greenhouse gas emissions

direct rebound effect on urban residential electricity use an empirical study in china abstract though improving energy efficiency is an important approach to decrease the energy consumption the rebound effect caused by technology progress negatively affects the effectiveness of energy efficiency policies this paper empirically investigates direct rebound effect of urban residential electricity use in china using china s 30 provincial government panel data from1996 to 2010 we build a co integration equation and a panel error correction model to analyze the direct rebound effect the results indicate that an obvious rebound effect in the chinese urban residential electricity consumption does exist specifically the long term rebound effect is 0 74 while the short term rebound effect is 0 72 therefore the rebound effect significantly impairs functions of energy efficiency policies for this reason chinese government should take the rebound effect into consideration when formulating energy policies

impact of urbanization growth on malaysia co2 emissions evidence from the dynamic relationship abstract urbanization is a phenomenon of economic and social modernization investigating the link between urbanization growth and co2 emissions is necessary and helpful for malaysia to achieve its pollution reduction targets ecological modernization and augmented cobb douglas production theories are used in order to gain the best understanding of interaction between co2 emissions and urbanization for the 1971 2015 period this study aims to examine the relationships among co2 emissions urbanization growth energy consumption gdp domestic investment and financial development the f bounds test and vecm granger causality are utilized the dynamic relationship among variables and the inverted u shaped relationship between co2 emissions and urbanization in the long run are examined the elasticity of co2 urbanization is found positive elastic in the early stage of urbanization but it turns to negative inelastic at the higher urbanization stage furthermore the unidirectional causality from urbanization to co2 emissions in the short run are at a 1 percent level of significance and the bidirectional causality between co2 emissions and urbanization is at a 5 percent level of significance in the long run also we captured bidirectional causality among energy consumption domestic investment gdp co2 emissions and unidirectional causality from financial development to co2 emissions at least at a 5 percent level of significance these findings could support policymakers in managing urbanization development and considering clean investment and other green aspects for urban sustainable development which can save many people from natural disaster

the impact of energy price uncertainty on macroeconomic variables abstract this paper evaluates the macroeconomic implications of energy price volatility through the lens of a dynamic stochastic general equilibrium dsge model in an open economy the model develops a small open economy in which households consume energy products and firms use energy as productivity inputs where the country is so small that it needs to import energy the price of which is determined abroad whereas positive energy price shocks cause an economic slowdown due to higher costs for consumers and firms energy price volatility shocks generate an increase in gdp in the short run and a reversal in the long run these findings are empirically supported by estimates from a panel var model applied to 10 asian economies where energy price volatility has a positive impact on gdp in the short run moreover the paper finds that increasing demand or supply uncertainty also affect energy prices with amplified fluctuations relative to a model that abstracts from energy market volatility leads households to cut consumption for precautionary savings motives which in turn increases investment both energy price and uncertainty fluctuation lead to high macroeconomic volatility in the business cycle policy makers should encourage investment in energy security and renewable energy such that households and firms would become less responding to fluctuations in the non renewable energy market

the effectiveness of energy efficiency improvement in a developing country rebound effect of residential electricity use in south korea abstract the government of south korea considers an energy efficiency improvement policy an effective economic measure for climate change like many other governments but it is unaware of any rebound effect the unexpected result of energy efficiency improvement so the rebound effect of residential electricity use in south korea was estimated using two different scales in this paper at the macro level the rebound effect was estimated indirectly by using price elasticity and at the micro level the rebound effect of individual home appliances was estimated directly by using a non linear relationship between energy efficiency and energy use at the macro level the long and short term results of rebound effect were estimated at 30 and 38 respectively also at the micro level the rebound effect of air conditioners was 57 70 while refrigerators showed only a composite of rebound and income effects finally there was no backfire effect and efficiency improvement brought energy reduction in conclusion these suggest that rebound effect is an important factor that the government of south korea must consider when planning its energy efficiency improvement policy

income inequality and carbon emissions in the united states a state level analysis 1997 2012 abstract this study investigates the relationship between u s state level co 2 emissions and two measures of income inequality the income share of the top 10 and the gini coefficient each of the inequality measures which focus on unique characteristics of income distributions is used to evaluate the arguments of different analytical approaches results of the longitudinal analysis for the 1997 to 2012 period indicate that state level emissions are positively associated with the income share of the top 10 while the effect of the gini coefficient on emissions is non significant the statistically significant relationship between co 2 emissions and the concentration of income among the top 10 is consistent with analytical approaches that focus on political economy dynamics and veblen effects which highlight the potential political and economic power and emulative influence of the wealthy the null effect of the gini coefficient is generally inconsistent with the marginal propensity to emit approach which posits that when incomes become more equally distributed the poor will increase their consumption of energy and other carbon intensive products as they move into the middle class

impact of urbanization on energy related co2 emission at different development levels regional difference in china based on panel estimation abstract we examined the influence of urbanization on co2 emission at different development levels employing the stochastic impacts by regression on population affluence and technology stirpat model on provincial panel data from 1995 to 2013 for china to investigate regional differences based on development levels in the effects of urbanization on co2 emission we divided the 29 provinces of china into three regions according to their per capita real gdp at constant value 1990 100 the panel estimation for the whole dataset and the three regions showed an inverted u relationship between urbanization and co2 emission in the major regions of china specifically the effects of urbanization vary significantly across the regions in region 2 and region 3 a threshold level was identified beyond which the emission urbanization elasticity was negative and further increases in the urbanization rate did not contribute to higher emissions however in region 1 only population and affluence rather than urbanization were significant factors affecting co2 emissions in addition the results did not confirm the environmental kuznets curve relationship between income and co2 emission where co2 emission increases monotonically with income we propose a series of policy implications based on these outcomes to help realize emission reduction targets better

coordination without command stretching the scope of spontaneous order how far can we stretch the scope of spontaneous order gordon tullock s important work on the economics of non human societies shows how these societies are able to coordinate without command despite features economists typically see as limiting the scope of spontaneous order using tullock s insights i search for the human ant nest spontaneous institutional arrangements that create human cooperation despite the presence of these obstacles i find two significant examples of this both in precolonial africa the first demonstrates the effectiveness of spontaneous order in the face of threats of violent theft the second shows the effectiveness of spontaneous order in the face of social heterogeneity these cases suggest a broader scope for spontaneous order than conventional wisdom permits

how urbanization affects energy use in developing countries abstract this paper identifies mechanisms whereby urbanization affects energy consumption industrialization and urbanization accompany each other during economic development but urbanization exerts a number of independent influences on energy use it permits economies of scale in production but requires more transportation food must be transported to urbanized populations and relatively smaller agricultural populations must modernize entailing considerable increases in agricultural energy use in cities a number of production activities which were domestically provided in rural areas using human or animal energy shift to sources outside the household using modern energy sources the largest single source of change in energy use is personal transportation passenger transport in cities is heavily weighted towards fuel using modes particularly as incomes increase to assess the overall impact a regression analysis of 59 developing countries for 1980 is conducted holding constant per capita income and the extent of industrialization the elasticity of energy consumption per capita and per dollar of gdp is between 0 35 and 0 48

international real business cycles we ask whether a two country real business cycle model can account simultaneously for domestic and international aspects of business cycles with this question in mind we document a number of discrepancies between theory and data the most striking discrepancy concerns the correlations of consumption and output across countries in the data outputs are generally more highly correlated across countries than consumptions in the model we see the opposite