A multiscale analysis of the EKC for energy use and CO2 emissions

Building on a previous piece of research (Luzzati and Orsini 2009), this paper re-assesses the environmental Kuznets’ curve hypothesis (EKC) for total primary energy supply and extends it to CO2 emissions for the period 1971-2014. Two are the peculiar traits of our approach. 1) It performs a robustness exercise by (a) using both parametric and semi-parametric methods, and (b) analyzing different levels, that is, the world as a whole, a panel of 115 countries, some sub-samples of it, and single countries. 2) Consistently with the EKC narrative and with theoretical papers, Energy and CO2 are taken in absolute rather than in per capita terms. The reason is obvious, “Nature cares” about absolute impacts. Our exercise confirms that also for a time span that includes the great recession, evidence in favour of an Energy and/or CO2 EKC is either absent or a statistical artefact.