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The relationship between CO2 emissions and income: evidence from Japan

Abstract

In this paper, using Japanese prefecture data sets for the period of 2006–2015, we attempt to empirically examine the validity of the environmental Kuznets curve (EKC) hypothesis for Japan. Overall, it is found that there is a monotonic nexus between CO2 emissions and per capita income, therefore implying that the EKC does not exist.

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Notes

  1. 1.

    Ibaragi, Tochigi, Gunma, Saitama, Chiba, Tokyo, Kanagawa, Toyama, Fukui, Shizuoka, Aichi, Mie, Shiga, Osaka, and Hiroshima.

  2. 2.

    Miyagi, Yamagata, Fukushima, Niigata, Ishikawa, Yamanashi, Nagano, Gifu, Kyoto, Hyogo, Wakayama, Okayama, Yamaguchi, Tokushima, Kagawa, and Fukuoka.

  3. 3.

    Hokkaido, Aomori, Iwate, Akita, Nara, Tottori, Shimane, Ehime, Kochi, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, Kagoshima, and Okinawa.

  4. 4.

    The model is given by: \(\Delta Y_{i,t} = \alpha_{i} + \beta Y_{i,t - 1} + \mathop \Sigma \nolimits_{k = 1}^{n} \varphi_{k} \Delta Y_{i,t - k} + \delta_{i} t + \varepsilon_{it}\). The null hypothesis of \(\beta = 0\) will be tested against the alternative hypothesis of \(\beta < 0\).

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Correspondence to Katsuya Ito.

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Ito, K. The relationship between CO2 emissions and income: evidence from Japan. Lett Spat Resour Sci (2021). https://doi.org/10.1007/s12076-021-00277-2

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Keywords

  • CO2 emissions
  • Environmental Kuznets curve
  • Japan

JEL classification

  • Q50