The EKC for SO2: does firm size matter?

Bruno Merlevede, Tom Verbeke () and M. de Clercq ()
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M. de Clercq: -

Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium from Ghent University, Faculty of Economics and Business Administration

Abstract: The environmental Kuznets curve hypothesis (EKC) predicts and inverse U-shaped relationship between environmental pollution and per capita income. The literature with respect to the EKC is vast but far from conclusive. This paper adds firm size to the standard EKC reduced form regression and analyses whether firm size matters once income and composition are controlled for. Results suggest that countries whose average firm is larger are initially associated with higher levels of environmental damage. However, as economies develop, large firm countries find it easier to adopt environmental legislation. Environmental damage starts to decrease at lower levels of income and the decrease is much larger compared to countries whose firms are on average small.

Keywords: Environmental Kuznets Hypothesis; Firm size (search for similar items in EconPapers)
Pages: 30 pages
Date: 2004-01
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Citations: View citations in EconPapers (1)

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http://wps-feb.ugent.be/Papers/wp_04_218.pdf (application/pdf)

Related works:
Journal Article: The EKC for SO2: Does firm size matter? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:rug:rugwps:04/218

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