Environmental Latecomer's Effects in Developing Countries: The Case of SO2 and CO2 Emissions

Abstract

Using the analytical framework of the environmental Kuznets curve, this study examines whether developing countries in the world enjoy the latecomer's advantage or suffer the latecomer's disadvantage in the area of environmental management and technology, with a focus on representative environmental indices of sulfur emissions and carbon emissions. The study's two main findings represent clear contrasts in panel estimation results between sulfur emissions and carbon emissions First, sulfur emissions follow the expected inverted U-shape pattern of the environmental Kuznets curve, while carbon emissions show monotonous increasing trends with per capita income in the observed range. Second, sulfur emissions represent the dominance of the latecomer's advantage while carbon emissions reveal that of the latecomer's disadvantage. The contrast in the emission-income patterns appears to come from the difference in the origin of emissions: sulfur emissions mainly from production (emissions from production are easily regulated on the local level), and carbon emissions from both production and consumption (emissions from consumption are easily externalized). In addition, the contrast in the latecomer's effects seems to be related to the degree of maturity in the know-how and technology to abate emissions: prevailing desulfurization and unrestricted "carbon leakage."