Economic Guide Questions

Type your answers below the empty space provided (you may use more space of course) using BLUE in CALIBRI FONT: Then upload on designated portal on our course Bb on the date indicated.
Note we have two different due dates for submission.
 
These three readings all relate to economic growth-pollution relationship, but from a macroeconomic standpoint. This is how the readings and labs are related to each other and to other modules:  
 

1. The first HW due on this topic is for Pugel and Dasgupta together. Pugel reading (pages 284-288) provides the background on the relationship between economic growth and pollution, the components of those relationships, the shape of the traditional EKC and what it means. Dasgupta discusses the how the shape of the EKC can be different from the traditional EKC and the interventions needed to modify the shape. Note that these interventions relate to different types of regulations/interventions that we have discussed (standards, taxes, permits, VIBAs)

2. For EKC Lab 1: we will be estimating the turning point of the EKC: i.e., what level of GDP per capita will EKC start to slope down. The second HW due will be the Excel file that you did to re-create EKC Lab 1 results.

3. The third HW due date is for Cole which extends the EKC to incorporate trade. It is this inclusion of trade variables that will allow us to relate the EKC (the composition effect – see Pugel reading below) to pollution haven hypothesis (Dechezleprêtre and Sato reading). Note that the income effect (see below) is what relates EKC to regulation which is the topic in an earlier module). Note that Cole explains how inclusion of trade variables will affect the turning point of the EKC. Once again, our modules and concepts therein are inter-related and their linkages will get clearer as we go along. 

4. For EKC Lab 2: we will be analyzing whether the coefficients of the trade variables are as expected based from Cole, and estimate whether the turning point of the EKC in models with trade variables will behave as they did in the Cole paper. The fourth HW due date will be the Excel file that you did to re-create this EKC Lab 2 results.

 
Before you get started on the readings watch these:
https://www.youtube.com/watch?v=v-USvMNPNKM
https://www.youtube.com/watch?v=RXw_X9L_4TQ