Impacts of Regional Productivity Growth, Decoupling and Pollution Leakage

Cui, Cathy Xin and Hanley, Nick and McGregor, Peter and Swales, Kim and Turner, Karen and Yin, Ya Ping (2015) Impacts of Regional Productivity Growth, Decoupling and Pollution Leakage. University of Strathclyde.

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Abstract

This IPPI Occasional Paper examines the issues of decoupling regional economic growth and pollution and the extent to which pollution effects spill-over regional and national borders. Specifically, a UK, regionally-disaggregated, computable general equilibrium (CGE) model is used to investigate the relationship between economic growth and the level of CO2 emissions posited by the ‘Environmental Kuznets Curve’ (EKC) conjecture. The simulation results suggest that at the regional level the existence of an EKC relationship depends on the source of regional growth and how the EKC relationship is specified.

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