English, Article, Journal or magazine article edition: Regime Switching and the Shape of the Nektarios Aslanidis; Anastasios Xepapadeas

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Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Regime Switching and the Shape of the
Author
  • Nektarios Aslanidis
  • Anastasios Xepapadeas
Physical Description
  • preprint
Notes
  • We explore the idea of regime switching as a new methodological approach in the analysis of the emission - income relationship. We formalize the idea by using a simple static model of profit maximization where above a threshold income level a more stringent environmental policy induces a decreasing emission-income relationship. At the empirical level we estimate such a regime switching model and we find an inverse-V-shaped emission - income relationship. .Our findings are in line with the original papers in this literature. We estimate thresholds which can be viewed as turning points, and which occur at reasonable values.
  • Environmental Kuznets Curve, environmental policy,
  • RePEc:crt:wpaper:0206
Language
  • English
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