3 years ago

Taming the SO 2 and NO x emissions: evidence from a SUR model for the US

Thanasis Stengos, Michael Polemis

Abstract

We construct a Seemingly Unrelated Regression (SUR) model to investigate the link between local environmental pollution (sulfur dioxide-SO2 and nitrogen oxides-NOx emissions) and economic growth on a panel data set framework for the US over the period 1990–2012. The presence of different polynomials of GDP for each equation of SO2 and NOx respectively allows us to utilize a SUR model to estimate jointly the two equations in order to examine the total effect of environmental degradation. While we find evidence of a quartic relationship between SO2 emissions and economic development in a single equation framework this outcome does not seem to hold when we utilize a SUR model controlling for cross section dependence.

Publisher URL: https://link.springer.com/article/10.1007/s12076-018-0203-8

DOI: 10.1007/s12076-018-0203-8

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