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Abstract
This paper examines why some countries have experienced environmental Kuznets
curve (EKC)-type reductions in carbon dioxide (CO2) emissions, while others have
not. The hypothesis that climbing to the upper rungs of the electricity ladder (nuclear
power and modern renewables) has been the primary mechanism via which countries
have achieved substantial reductions in per capita CO2 emissions is tested using a
binomial dependent variable modelling approach for a sample of 105 countries. The
findings suggest that electricity mix transitions caused by long-run growth in per capita
incomes are indeed the primary determinant of carbon Kuznets curve downturns.
The paper explores additional mechanisms via which carbon Kuznets curves may have
been generated, but the results indicate that these are of lesser overall importance than
the electricity mix effect. The evidence also suggests that countries with larger fossil
fuel endowments are less likely to experience carbon Kuznets curve downturns, an
additional curse of natural resources.