alexa Energy Regulation in the EKC Model with a Dampening Effect | OMICS International | Abstract
ISSN: 2380-2391

Journal of Environmental Analytical Chemistry
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Research Article

Energy Regulation in the EKC Model with a Dampening Effect

Agustín Alvarez-Herranz1* and Daniel Balsalobre-Lorente2

1Departament of Economía Española e Internacional, Econometría e Historia e Instituciones Económicas, Universidad de Castilla La Mancha, Spain

2Departament of Economía Política u Hacienda Pública, Estadística Económica y Empresarial, y Política Económica, Universidad de Castilla La Mancha, Spain

*Corresponding Author:
Agustín Alvarez-Herranz
Departament of Economía
Española e Internacional
Econometría e Historia e Instituciones Económicas
Universidad de Castilla La Mancha, Spain
Tel:347188426
E-mail: [email protected]

Received date: April 17, 2014; Accepted date: April 24, 2015; Published date: April 27, 2015

Citation: Agustín Alvarez-Herranz, Daniel Balsalobre-Lorente (2015) Energy Regulation in the EKC Model with a Dampening Effect. J Environ Anal Chem 2:137. doi: 10.4172/2380-2391.1000137

Copyright: © 2015 Agustín Alvarez-Herranz, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Abstract

The empirical environmental kuznets curve (EKC) model provides a popular means to analyze the correlation between economic growth and environmental destruction. This study seeks to verify if implementing environmental regulations has effects beyond the EKC. An elaborated panel data model applies to 28 OECD countries to analyze not only the relationship between economic growth and environmental destruction but also the effect of regulatory activities on the replacement of energy sources and their efficiency. The proposed model also accounts, for the first time, for the effect of level of income on the replacement of energy sources. Using the EKC, this study demonstrates that energy regulation measures help reduce greenhouse gas emissions (GHG). To validate this hypothesis, we have also added the dampening effect that income level has over the contribution of renewable energy sources to the total of energy consumption. The estimation reveals increases in the explanatory power of the model. This study concludes that pollution will not disappear automatically when economic growth increases. Therefore the need to develop energy efficiency RD&D in order to reduce environmental pollution.

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