Economic freedom and the greenhouse gas Kuznets curve

Abstract

If and how economic freedom is associated with environmental damage remains an open question. In this paper, I therefore combine data on greenhouse gas emissions and GDP per capita with the Economic Freedom of the World indices to test if economic freedom affects emissions. I do so in the context of estimating a standard Environmental Kuznets Curve in which economic freedom can both reduce overall levels as well as shift the shape of the curve. The results suggest that economic freedom reduces greenhouse gas emissions but also shifts the top point of the Kuznets Curve to the left.