Inference of the environmental Kuznets curve

Abstract

This article provides inference of the pollution and income relationship, typically known as the Environmental Kuznets Curve (EKC). We construct the Uniform Confidence Band (UCB) of the nonparametric component in the semiparametric EKC and test the hypothesis of an inverted U-shaped pattern.

Keywords:

• environmental Kuznets curve
• nonparametric function
• semiparametric kernel regression
• inference
• uniform confidence band

JEL Classification:

• C12
• C14
• Q50