THE AUTOMOTIVE LEAD KUZNETS CURVE: AN ANALYSIS OF THE THEORY AND EMPIRICS

Resumen

This paper analyzes and criticizes Hilton and Levinson (1998), by showing that even though an interesting and well written paper, the theoretical background can be restrictive. For example, the composition effect does not allow for the existence of economies of scale of pollution and the scale effect theory does not permit a changing technology. Finally, we show that the empirical model could be giving spurious results due to the
presence of unit roots or its result could be inconclusive because it lacks other regressors that the literature has shown that explain the level of emissions in an economy. Additionally, the authors do no verify their theory with their empirical model. Consequently, some suggestions and future research that could validate their findings are proposed