This paper looks for evidence of an environmental
Kuznets curve for water pollution in countries that share major rivers as their
border. The data in this paper consist of a panel of 21 years and 30 countries,
seven of which are border countries. The turning point for the border countries
is much lower than that for the other subset. A t-test comparing group means for
income and biochemical oxygen demand levels for both subsets finds no
statistical difference for either variable, implying that countries
sharing a river may be able to enforce environmental regulations more
effectively than countries not sharing a river.
K. P. Paudel, H. Zapata and D. Susanto, “An Empirical Test of Environmental Kuznets Curve for Water Pollution,” Environmental and Resource Economics, Vol. 31, No. 3, 2005, pp. 325-348. http://dx.doi.org/10.1007/s10640-005-1544-5
C. Lee, Y. Chui and C. Sun, “The Environmental Kuznet’s Curve Hypothesis for Water Pollution: Do Regions Matter?” Energy Policy, Vol. 38, No. 1, 2010, pp. 12-23. http://dx.doi.org/10.1016/j.enpol.2009.05.004
G. Catalina, L. G. Pérez and J. C. Muñoz, “The Environmental Kuznets Curve for Water Quality: An Analysis of its Appropriateness Using Unit Root and Cointegration Tests,” Lectures of Economics, Vol. 69, No. 69, 2008, pp. 221-244.
M. H. Pesaran and R. Smith, “Estimating Long-Run Relationships from Dynamic Heterogeneous Panels,” Journal of Econometrics, Vol. 68, No. 1, 1995, pp. 621-634. http://dx.doi.org/10.1016/0304-4076(94)01644-F
M. H. Pesaran, Y. Shin and R. Smith, “Pooled Mean Group Estimation of Dynamic Heterogeneous Panels,” Journal of the American Statistical Association, Vol. 94, No. 446, 1999, pp. 621-634. http://dx.doi.org/10.1080/01621459.1999.10474156
G. S. Maddala and S. Wu, “A Comparative Study of Unit Root Tests with Panel Data and New Simple Test,” Oxford Bulletin of Economics and Statistics, Vol. 61, No. S1, 1999, pp. 631-652. http://dx.doi.org/10.1111/1468-0084.61.s1.13