Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/142235 
Year of Publication: 
2016
Series/Report no.: 
Economics Department Working Paper Series No. 15
Publisher: 
Technische Universität Braunschweig, Institut für Volkswirtschaftslehre, Braunschweig
Abstract: 
This paper studies the effect of carbon leakage on the environmental Kuznets curve (EKC) using satellite nighttime light data. I show that nighttime lighting is an important variable for estimating carbon dioxide emissions that is superior to other existing indicators and covers all countries in the world. I find evidence of an inverted-U shaped relationship between light and, thus, greenhouse gas emissions and income, with a turning point at approximately US $50,000. However, the relationship is primarily driven by changes in the structure of international trade, implying strong carbon leakage effects. Consequently, environmental regulations that become operative in only one part of the world may fail without global coordination.
Subjects: 
Environmental Kuznets Curve
Carbon Leakage
Nighttime Lighting
JEL: 
F18
F64
Q50
Document Type: 
Working Paper

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