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Income elasticity of building permits.  

Income elasticity of building permits.  

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This paper investigates the relationships between land consumption and per capita gross domestic product (GDP) for a panel of 20 Italian regions over the period 1980–2010. As proxy of land consumption, it uses the supply of new housing, being residential construction the main cause of soil sealing. To test this hypothesis it runs a panel data regre...

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... . 007 0 10000 20000 30000 40000 0 10000 20000 30000 40000 0 10000 20000 30000 40000 0 10000 20000 30000 40000 0 10000 20000 30000 26,000 euros the income elasticity becomes greater than 1 ( figure 3). This means that land (for housing) behaves like a luxury good. ...

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... According to Brown and McDonough (2016), the idea of the EKC is long-term. Taking this into consideration, the EKC represents a dynamic environment-economy relationship that focuses on long-run processes of change (Bimonte and Stabile 2017). In order to guarantee the concavity of the curve, the EKC is evaluated based on the nature of the income's impact and its square on environmental degradation. ...
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... Dasgupta et al. (2002),John and Pecchenino (1994),John et al. (1995),Selden and Song (1994),Cole (2007),Galeotti et al. (2006),Panayotou (1997) 4 Particularly in the literature that deals with European countries: Data and De (2021), Ma et al. (2021), Xu et al. (2020), Ali et al. (2020), Alsayed and Kun Sek (2013) for renewable energy; Jozwik et al. (2021), Topolewski (2021), Dogan et al., (2020), Balcilar et al. (2020), Li et al. (2020), Destek et al. (2016), Bozkurt and Okumus (2019), Al Mulali et al. (2015),Figuero and Pastén (2009), andSuri and Chapman (1998),Richmond and Kaufmann (2006a, b),Shahbaz et al. (2017),Ansari et al. (2020),Altıntas and Kassouri (2020), and Chen (2016) for non-renewable energy. 5 Environmental impact (I), population (P), affluence (A), and technology (T).6 Dinda (2004),Bimonte and Stabile (2017).Content courtesy of Springer Nature, terms of use apply. Rights reserved. ...
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... In contrast, land use challenges have been much less explored. In the available literature, researchers have identified substantial challenges in reversing the increasing impact of human land use (Bimonte and Stabile, 2017;Pontarollo and Serpieri, 2020). Thus, our cases serve as illustrations of scenarios in which the possibilities for decoupling consumption from environmental impacts differ. ...
... For example, Pontarollo and Serpieri (2020) studied residential built-up land in 42 Romanian counties from 2000 to 2014, and found an inverted EKC. These results are in line with an earlier study relating land consumption to per capita GDP in 20 Italian regions over the 1980-2010 period (Bimonte and Stabile, 2017), which reported an N-shaped curve with increasing impacts for very high levels of affluence. ...
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... For economic development, scholars mainly focused on the economic level, industrial structure and opening up, such as the environmental Kuznets curve (Youssef et al. 2016;Bimonte and Stabile 2017;Gill et al. 2018;Chang et al. 2021), industrial structure upgrading (Grossman and Krueger 1995;Li et al. 2018;Cheng et al. 2018), industrial spatial transfer or industrial spatial agglomeration (Hu and Cheng 2013;Martin and Hans 2011;Zhang et al. 2022b;Cai and Hu 2022), opening up, and the pollution refuge hypothesis (Ang 2009;Dean et al. 2009;Sun et al. 2017;Cai et al. 2018). In terms of economic institutions, they often play a crucial role in economic and social development, resulting in many models with Chinese characteristics (Bian et al. 2019). ...
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... The EKC is a long-run concept [28]. In light of this, the EKC reflects a dynamic environment-economy relationship concentrating on long-run processes of change [29]. The EKC is assessed through the nature of the effect of the income and its square (to ensure the concavity of the curve) on environmental degradation. ...
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Environmental changes based on factors like urbanization, population, economic growth, increase in energy consumption, and agricultural intensification are never far from the top of any agenda. The topics of environmental degradation and climate change cannot be confined to a single country or region but need to be addressed on a global scale. If the focus is on the relationship between environmental degradation and economic growth, then one hypothesis that is comprehensively used as an empirically model is the widely known Environmental Kuznets Curve. A substantial amount of research has been published about the Environmental Kuznets Curve, and this present study provides a detailed and extensive literature review of more than 200 articles from 1998 to 2022 to explain and assess its evolution. This literature review provides in detail the Environmental Kuznets Curve relationship under analysis, the additional variables included, the type of analysis and methods performed, the relationships obtained, and if the turning point is calculated. Furthermore, this comprehensive literature points out critical issues and gaps in the Environmental Kuznets Curve analysis. It is important to note that there are components that are not considered in the Environmental Kuznets Curve analysis. The Environmental Kuznets Curve only focuses on production and overlooks the impact of the consumption of imported goods on the environment. Consequently, environmental improvements from technological progress will be offset, and economic growth will result in more environmental degradation. This goes against the change in consumer behaviour which occurs with a rise in income, which is one basic assumption of the Environmental Kuznets Curve. The relocation of pollutant industries and consequent relocation of emissions could distort the emissions trajectory over the economic growth path and is also not considered in the Environmental Kuznets Curve analysis. On the other hand, the growth path traced by the inverted U-shaped is not efficient, and the environmental damage provoked in the first phases of the EKC might not be repairable. Therefore, technological progress, climate finance, and energy transition could improve the Environmental Kuznets Curve assessment.
... Since then, researchers have been using this template as an inspiration to analyze the long-term relationship between per capita income and environmental quality/damage. Among the many researchers that used different variables, different data span, different estimation techniques, and find the existence of partial environmental Kuznets curve or Ushape hypothesis include: Bimonte (2017) and Pontarollo and Muñoz (2020). Contrary to the findings of partial EKC, Jiang et al. (2019), Pontarollo and Serpieri (2020), Bimonte and Stabile (2017), Riti et al. (2017), and are among those that reveal full support of the EKC proposition. ...
... Contrary to the findings of partial EKC, Jiang et al. (2019), Pontarollo and Serpieri (2020), Bimonte and Stabile (2017), Riti et al. (2017), and are among those that reveal full support of the EKC proposition. For example, Bimonte (2017) uses a heuristic approach to analyze the relationship between per capita income and land consumption, as proxied by the number of Building Permits issued by public authorities. Using data from the Italian regions, we run a panel data regression model to test whether the EKC hypothesis holds. ...
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... The contentious analysis of the traditional quadratic EKC hypothesis allowed authors to examine different shapes for the EKC, from quadratic to cubic relationships. Among the relevant studies on the EKC hypothesis, some of the studies that have reported the authenticity of the inverted-U shaped economic growth-environmental quality association include Murshed (2020a) for Bangladesh, Apergis and Ozturk et al. 2016in 14 Asian countries, Bimonte and Stabile (2017) in 20 Italian regions, Pata (2018) for Turkey, Murshed (2020b) for South Asian countries, Al-Mulali et al. (2015) for a panel of 93 global economies, Sarkodie and Ozturk (2020) for Kenya, Ng et al. (2020) for a panel of 76 countries, Lau et al. (2019) for 18 Organization for Economic Cooperation and Development (OECD) countries, and Gormus and Aydin (2020) for Israel. On the other hand, several studies have also presented evidence of an N-shaped and/or inverted N-shaped EKC (López-Menéndez et al. 2014;Álvarez-Herránz et al. 2017;Tzeremes 2019;Barış-Tüzemen et al. 2020). ...
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This study examines the Environmental Kuznets Curve (EKC) hypothesis in the context of 12 members of the OPEC by utilizing data on both the aggregate gross value added and the services' sectors' value-added between 1992 and 2015. This empirical work contributes to the literature by applying the panel spatial techniques which resulted in the findings as follows. Firstly, the results verify the authenticity of the EKC hypothesis for the aggregate level of gross value added as perceived from its inverted-U shaped association with CO2 emissions. Secondly, the disaggregated analysis affirms the heterogeneity of the authenticity of the EKC hypothesis across the subsectors within the services sector which justifies the importance of analyzing the EKC hypothesis from a comprehensive (disaggregated) perspective for unearthing key sector-specific policy implications. The results reveal that the EKC hypothesis holds only in the context of construction services which calls for effective measures to be undertaken to address the adverse environmental impacts of the contributions of restaurant services, tourism and transportation to the aggregate level of GDP. Based on the results, it is recommended that the OPEC members reduce their monotonic dependency on the consumption of fossil fuels, oil in particular, and gradually incorporate renewable energy resources into the energy-mix particularly within the services sector.
... Assuming an accelerated wealth creation as a precondition for technological progress, the country's income indirectly sustains a more effective response to environmental degradation (Magnani 2000(Magnani , 2001Bimonte 2002). The EKC assumption illustrates a dynamic environment-economy relationship focusing on long-term processes of change (Bimonte and Stabile 2017b). These processes are mainly based on differentiated development paths, which are typical of countries that have experienced sequential stages of growth over time. ...
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A complex interplay of socio-ecological drivers of change exists at the different spatiotemporal scales affecting environmental degradation. This is a key issue worldwide and needs to be understood to develop efficient management solutions. One of the most applied theories in the regional analysis is the U-shaped relationship between environmental degradation and the level of income in a given economic system or Environmental Kuznets Curve (EKC). Specifically, the EKC hypothesis underlines the (potentially positive) role of formal responses to environmental degradation grounded on government policies that are usually more ambitious in wealthier economic systems. However, there is a lack of knowledge on the role of space in EKC, arguing that spatial variability in the environment-income relationship may indicate additional targets for integrated socio-environmental policies. We hypothesize that a spatially differentiated response to environmental degradation could better adapt to differentiated local contexts. Therefore, to achieve this goal, we present a multi-scale investigation of degradation processes at the local level, providing a refined knowledge of the environment-economy linkages considering more traditional, crosscountry and cross-region exercises. Our results demonstrated that-together with temporal, sectoral, and institutional aspects-space and, consequently, the related analysis' spatial scales, are significant dimensions in ecological economics, whose investigation requires improvements in data collection and dedicated statistical approaches.
... The purpose is therefore to determine whether and how the consequences of economic development coexist in a country undergoing profound and rapid transition. In the EU, this argument has been recently addressed by Bimonte and Stabile (2017a;2017b) for Italy, but relating economic development to building permits. 5 Romania is a distinctive case because it is subject to a set of rules which are common to other EU countries as a consequence of the 2007 accession, but it is still far from the average European stage of development. ...
... In our analysis, we use spatial panel econometric tools, which enable us to identify the sign and magnitude of spatial spill-overs due to interactions in space among neighbouring locations with similar characteristics. A similar approach has been adopted by Pontarollo and Mendieta Muñoz (2020) for Ecuador who, however, similarly to Bimonte and Stabile (2017a;2017b), concentrate on building permits. 6 ...
... First, we refer to those papers that analyse the wealth/land use relationship, still little investigated, at a territorial level lower than the national one. Among them, Bimonte and Stabile (2017a;2017b) explore this issue by adopting building permits as a proxy for land consumption. Using standard panel econometric techniques, with a focus on Italian regions, they conclude that an inverted EKC is occurring. ...
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The aim of the present study is to test empirically the Environmental Kuznets Curve (EKC) hypothesis for 42 Romanian counties over the 2000-2014 period. Specifically, we investigate the existence of an inverted U-shaped curve relationship between residential built-up land and economic development in a low-income EU country undergoing rapid and profound transition. We do so by making innovative use of spatial panel econometric techniques. Contrary to our expectations, the results indicate an inverted EKC, implying that higher levels of residential built-up area occur for higher levels of wealth. Moreover, we find that the built-up land in Romania mainly reflects processes of urban expansion, such as sprawl or suburbanization, that may have harmful environmental and social consequences. Spatial spill-overs in terms of built-up land arise and spread, albeit to a limited extent, to neighbouring locations. These findings are of potential significance for policy makers, because they highlight the need for coordination among neighbours. Furthermore, strengthening the institutional framework and local tax management, and planning urban regeneration better could curb and even reverse the extensive built-up land expansion and real estate speculation.
... The traditional EKC model was established with per capita GDP as the explanatory variable and per capita industrial waste emissions (solid waste, wastewater, waste gas) as the explained variable. Combined with the empirical literature of environmental economics [49,50], the above variables are in their natural logarithms. The model can be expressed as follows: where Psolid represents per capita industrial solid waste production, Pwater represents per capita industrial wastewater discharge, Pgas represents per capita industrial waste gas emissions, PGDP stands for per capita GDP, α0 indicates the intercept, ut is a random error component, and β1 and β2 are the undetermined coefficients. ...
... The traditional EKC model was established with per capita GDP as the explanatory variable and per capita industrial waste emissions (solid waste, wastewater, waste gas) as the explained variable. Combined with the empirical literature of environmental economics [49,50], the above variables are in their natural logarithms. The model can be expressed as follows: lnPsolid t = α 0 +β 1 lnPGDP t +β 2 ln 2 PGDP t +u t (2) lnPwater t = α 0 +β 1 lnPGDP t +β 2 ln 2 PGDP t +u t (3) lnPgas t = α 0 +β 1 lnPGDP t +β 2 ln 2 PGDP t +u t (4) where Psolid represents per capita industrial solid waste production, Pwater represents per capita industrial wastewater discharge, Pgas represents per capita industrial waste gas emissions, PGDP stands for per capita GDP, α 0 indicates the intercept, u t is a random error component, and β 1 and β 2 are the undetermined coefficients. ...
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Coal cities are an essential impetus for economic development and urbanization processes in China. However, a series of environmental issues provoked by resource exploitation cause the environmental sustainability of coal cities to face enormous challenges. Therefore, on the basis of the time series data of Yulin City from 1996 to 2017, this paper explores the nexus between socioeconomic development and industrial “three wastes” emissions by adopting the Tapio decoupling model, the environmental Kuznets curve (EKC) hypothesis, and the vector auto-regressive (VAR) model. The results show that Yulin’s economic development remains in an extensive stage and will not decouple from the environmental pollution in a short time. Except for the nexus of industrial solid waste and economic growth, which is an inverted U-shaped, the EKC hypothesis is not valid for industrial wastewater and industrial waste gas. Through the VAR (2) model, the impact of per capita gross domestic product (GDP) on industrial waste emissions is consistent with the results of the EKC hypothesis. Moreover, industrial waste emissions have a positive correlation with the per capita raw coal output, the energy consumption per unit of GDP, and the proportion of secondary industry. Hence, it is necessary to formulate targeted measures from industrial restructuring, industrial chain extension, governance model optimization, and waste comprehensive utilization to realize the environmental sustainability of coal cities.