The Effect of Economic Growth and Oil Price Variations on CO2 Emissions: Evidence from Spain (1874-2011)

A structural analysis on an environmental Kuznets curve (EKC with oil prices is carried out for Spain from 1874 to 2011. The dynamics of the long and short-term relationships among carbon dioxide (CO2), economic growth and oil prices is captured through an autoregressive distributed lag (ARDL) model. The EKC hypothesis is supported in a context where real oil price increases play a significant role on the reduction of CO2 emissions. Hence, the results suggest that oil taxes should be taken into account as an effective tool of environmental policy.