Testing the existence of an environmental Knznets Curve for sulfur using panel data models

Abstract

This paper uses a dynamic panel data for 73 ( 23 OECD and 50 non-OECD) countries for the time period 1960-1990 in order to estimate the relationship between Gross Domestic  Product (GDP) and pollution in the form of sulphur emissions. For the purpose of performing our empirical estimate, fixed and random effects are used. This analysis shows significant differences between the most industrialized countries and the rest of the countries considered. This implies that a uniform policy pollution is not adequate. It is necessary to take into rthe specific economic situation as well as the in dustrial and the business sectors in each county. Finally, in terms of policy implications, the study presents the mai ment options for sulphur reduction.