Water pollution and income relationships: A seemingly unrelated partially linear analysis

Document Type

Article

Publication Date

10-1-2016

Abstract

© 2016. American Geophysical Union. All Rights Reserved. We used a seemingly unrelated partially linear model (SUPLM) to address a potential correlation between pollutants (nitrogen, phosphorous, dissolved oxygen and mercury) in an environmental Kuznets curve study. Simulation studies show that the SUPLM performs well to address potential correlation among pollutants. We find that the relationship between income and pollution follows an inverted U-shaped curve for nitrogen and dissolved oxygen and a cubic shaped curve for mercury. Model specification tests suggest that a SUPLM is better specified compared to a parametric model to study the income-pollution relationship. Results suggest a need to continually assess policy effectiveness of pollution reduction as income increases.

Publication Source (Journal or Book title)

Water Resources Research

First Page

7668

Last Page

7689

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