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1
Bozkurt, Cuma, and İlyas Okumuş. "ENVIRONMENTAL KUZNETS CURVE HYPOTHESIS IN SELECTED EU COUNTRIES: KYOTO EFFECT." Balkans Journal of Emerging Trends in Social Sciences 2, no. 2 (2019): 134–39. http://dx.doi.org/10.31410/balkans.jetss.2019.2.2.134-139.
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The purposes of this study is to investigate the relationship between per capita CO2 emissions, per capita energy consumption, per capita real GDP, the squares of per capita real GDP, trade openness and Kyoto dummies in selected 20 EU countries over the periods from 1991 to 2013 in order to analyze the connection between environmental pollution and Kyoto Protocol using Environmental Kuznets Curve (EKC) framework. According to EKC hypothesis, there is an inverted-U shape relation between environmental pollution and economic growth. Generally, the relationship between environmental pollution, per capita GDP and energy consumption has been analyzed for testing EKC hypothesis. In this study, it is used dummy variable to analyze the effects of Kyoto protocol on environmental degradation in the context of EKC hypothesis model. The dummy variable indicates Kyoto Protocol agreement year 2005. The results show that there is long run cointegration relationship between CO2, energy consumption, GDP growth, and the squares of GDP growth, trade openness and Kyoto dummy variable. Energy consumption and GDP growth increase the level of CO2 emissions. On the contrary, Kyoto dummy variable decreases CO2 emissions in EU countries. In addition, the results reveal that the squares of per capita real GDP and trade openness rate are statistically insignificant. As a result of analysis, the inverted-U shape EKC hypothesis is invalid in these EU countries over the periods from 1991 to 2013.
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Krishnan, T. S. "Global Anthropogenic Carbon Dioxide Emission in 2005: Environmental Kuznets Curve Hypothesis and Implications for Policy." International Journal of Environment 5, no. 2 (May 26, 2016): 48–60. http://dx.doi.org/10.3126/ije.v5i2.15006.
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Environmental Kuznets Curve (EKC) hypothesis provides support for public policies that emphasize economic growth at the expense of environmental degradation. This hypothesis postulates an inverted U-shaped relationship between economic growth and environmental degradation with plausible explanations. We contribute to the discussion on EKC hypothesis by focusing on anthropogenic carbon dioxide (CO2) emission (a greenhouse gas) during an extreme year. In the year 2005, concentration of anthropogenic CO2 became higher than the natural range observed over the last 650,000 years. Using econometric modeling of data from 122 countries for the year 2005, we study the key question: Does EKC hypothesis hold for anthropogenic CO2 emission after controlling for energy consumption and environmental governance? We do not find statistical support for EKC hypothesis. But, we find that improvements in environmental governance reduces CO2 emission. This suggests support for environmental policies that specifically promote CO2 emission reduction and does not emphasize economic growth at the expense of environmental degradation.INTERNATIONAL JOURNAL OF ENVIRONMENTVolume-5, Issue-2, March-May 2016, Page: 48-60
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Maneejuk, Nutnaree, Sutthipat Ratchakom, Paravee Maneejuk, and Woraphon Yamaka. "Does the Environmental Kuznets Curve Exist? An International Study." Sustainability 12, no. 21 (November 2, 2020): 9117. http://dx.doi.org/10.3390/su12219117.
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This study aims to examine the relationship between economic development and environmental degradation based on the Environmental Kuznets Curve (EKC) hypothesis. The level of CO2 emissions is used as the indicator of environmental damage to determine whether or not greater economic growth can lower environmental degradation under the EKC hypothesis. The investigation was performed on eight major international economic communities covering 44 countries across the world. The relationship between economic growth and environmental condition was estimated using the kink regression model, which identifies the turning point of the change in the relationship. The findings indicate that the EKC hypothesis is valid in only three out of the eight international economic communities, namely the European Union (EU), Organization for Economic Co-operation and Development (OECD), and Group of Seven (G7). In addition, interesting results were obtained from the inclusion of four other control variables into the estimation model for groups of countries to explain the impact on environmental quality. Financial development (FIN), the industrial sector (IND), and urbanization (URB) were found to lead to increasing CO2 emissions, while renewable energies (RNE) appeared to reduce the environmental degradation. In addition, when we further investigated the existence of the EKC hypothesis in an individual country, the results showed that the EKC hypothesis is valid in only 9 out of the 44 individual countries.
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Arango Miranda, Raul, Robert Hausler, Rabindranarth Romero Lopez, Mathias Glaus, and Jose Ramon Pasillas-Diaz. "Testing the Environmental Kuznets Curve Hypothesis in North America’s Free Trade Agreement (NAFTA) Countries." Energies 13, no. 12 (June 16, 2020): 3104. http://dx.doi.org/10.3390/en13123104.
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In force since 1994, the North American Free Trade Agreement (NAFTA) is still the most comprehensive agreement ever developed, conforming to the world’s largest trade market. However, the environmental impacts cannot be neglected, particularly greenhouse gas emissions. The environmental Kuznets curve (EKC) hypothesis is revisited, studying Canada, Mexico, and the U.S.A. in relation to carbon dioxide (CO2) emissions, gross domestic product (GDP), energy, and exergy consumption. Ordinary least squares, vector autoregression, and Granger causality tests are conducted. Additionally, exergy indicators and the human development index (HDI) are proposed. Results for Mexico and the U.S.A. describe similar and interesting outcomes. In the search of the environmental Kuznets curve (EKC), the EKC hypothesis is confirmed for Mexico and the U.S.A. However, for Canada, the EKC hypothesis does not stand. The Granger causality test displays the existence of a uni-directional causality running from CO2 emissions to economic growth; a similar behavior was observed while testing the for the exergetic control variables. The most intriguing Granger causal results are those from the U.S.A. A bidirectional relation was observed between exergy intensity and CO2 emissions. Moreover, the EKC curve was plotted by both variables. Furthermore, Mexico’s outcomes reveal that increasing renewable exergy share will decrease CO2 emissions. On the contrary, increasing HDI will grow CO2 emissions. Policy implications arise for NAFTA countries to minimize CO2 emissions by means of the growing renewable energy share. Exergy tools offer an appealing insight into energetic and environmental strategies.
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Rahman, Arifur, S. M. Woahid Murad, Fayyaz Ahmad, and Xiaowen Wang. "Evaluating the EKC Hypothesis for the BCIM-EC Member Countries under the Belt and Road Initiative." Sustainability 12, no. 4 (February 17, 2020): 1478. http://dx.doi.org/10.3390/su12041478.
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This paper attempts to examine the environmental Kuznets curve (EKC) hypothesis for the BCIM-EC (Bangladesh–China–India–Myanmar economic corridor) member countries under the Belt and Road Initiative (BRI) of China. Both time series and panel data are covered, with respect to carbon dioxide (CO2) emissions, GDP per capita, energy use, and trade openness. For panel data analysis, GDP per capita and energy consumption have positive effects on CO2, while the effect of the quadratic term of GDP per capita is negative in the short-run. However, the short-run effects do not remain valid in the long-run, except for energy use. Therefore, the EKC hypothesis is only a short-run phenomenon in the case of the panel data framework. However, based on the Autoregressive Distributed Lag (ARDL) approach with and without structural breaks, the EKC hypothesis exists in India and China, while the EKC hypothesis holds in Bangladesh and Myanmar with regard to disregarding breaks within the short-run. The long-run estimates support the EKC hypothesis of considering and disregarding structural breaks for Bangladesh, China, and India. The findings of the Dumitrescu and Hurlin panel noncausality tests show that there is a unidirectional causality that runs from GDP per capita to carbon emission, squared GDP to carbon emission, and carbon emission to trade openness. Therefore, the BCIM-EC under the BRI should not only focus on connectivity and massive infrastructural development for securing consecutive economic growth among themselves, but also undertake a long-range policy to cope with environmental degradation and to ensure sustainable green infrastructure.
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Cansino, José M., Rocio Román-Collado, and Juan C. Molina. "Quality of Institutions, Technological Progress, and Pollution Havens in Latin America. An Analysis of the Environmental Kuznets Curve Hypothesis." Sustainability 11, no. 13 (July 6, 2019): 3708. http://dx.doi.org/10.3390/su11133708.
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A set of 17-year panel data (1996–2013) across a representative sample from eighteen Latin American countries is used to respond four research questions: Did Latin American Greenhouse Gas (GHG) emissions prove the Environmental Kuznets Curve (EKC) hypothesis? Did the quality of institutions play a compensating role for income on environmental stress? Did technological progress help decouple income from environmental stress? Has the Pollution Haven Hypothesis (PHH) been proven? In order to answer the research questions, the paper expands the traditional EKC approach by including an exclusive quality analysis of institutions, technological progress, and PHH as part of the model. This innovation is developed considering the most recent literature about EKC as a starting point. Major findings show that the relationship between income and GHG emissions is adjusted to the traditional EKC hypothesis for the analyzed period. They also show that the quality of institutions and technological progress improve environmental sustainability. However, the variables, Foreign Direct Investment and International Trade, provide a negative answer to the fourth question. The main methodological contribution of this paper is to use a threefold extended classic EKC model to conduct the feasible generalized least squares method. The paper also contributes to the growing body of PHH literature.
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Sadik-Zada, Elkhan Richard, and Mattia Ferrari. "Environmental Policy Stringency, Technical Progress and Pollution Haven Hypothesis." Sustainability 12, no. 9 (May 9, 2020): 3880. http://dx.doi.org/10.3390/su12093880.
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The present inquiry provides a common ground for the analysis of two strands of literature, the environmental Kuznets curve (EKC) and the pollution haven hypothesis (PHH). To this end, the study sets out a simple variational model, which identifies the structural composition of the economy and the level of economic development as the primary determinants of the magnitude of the domestic environmental degradation. The juxtaposition of the mentioned literature strands undermines the optimistic view that economic growth, in the long run, leads to the reduction of atmospheric pollution. To assess the empirical validity of the pollution haven conjecture, the study employs the OECD Environmental Policy Stringency Index and the refined data on carbon emissions embodied in imports for the dataset of 26 OECD countries in the time interval between 1995 and 2011. By employing pooled mean group (PMG) estimators, the study, for the first time, accounts for a number of issues mentioned in the literature as factors that confine the inferential power of existing empirical studies on the EKC. The strong and robust confirmation of the pollution haven conjecture indicates that at least in the context of global common pool resources, a purely national perspective of the EKC is not satisfactory.
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Rani, Ritu, and Naresh Kumar. "Investigating the Presence of Environmental Kuznets Curve Hypothesis in India and China: An Autoregressive Distributive Lag Approach." Jindal Journal of Business Research 8, no. 2 (December 2019): 194–210. http://dx.doi.org/10.1177/2278682119880510.
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The Environmental Kuznets Curve (EKC) hypothesis advocates a reversed U-shaped association between different pollutants and per capita income. EKC postulates that speedy growth certainly results in environmental degradation due to glut use of natural resources and emission of pollutants. The study used carbon dioxide (CO2) emissions, economic growth, energy consumption, and the annual growth rate of population to investigate the EKC hypothesis in India and China for the period of 1971–2013. Furthermore, to explore the long-run and short-run relationship among competing variables, the autoregressive distributed lag model (ARDL) is used. Granger causality test is used to investigate the long-run and short-run causality between variables under study. The results support the EKC hypothesis in India and China, in both long-run and short-run, and inverse U-shaped association is found between CO2 emission and economic growth. Unidirectional causality seen in both countries in terms of economic growth and CO2 emissions. In addition, the coefficient of economic growth in a short-run model provides the evidence that there has been a gradual decline in environmental degradation (downward sloping of EKC) and the quality of the environment is gradually improving in China. Based on the findings, the study suggests that environmental policymakers, especially in India, should seriously address the issue of CO2 emissions as it has a tendency to move faster in the coming years.
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Mahmood, Haider, Tarek Tawfik Yousef Alkhateeb, Muhammad Tanveer, and Doaa H. I. Mahmoud. "Testing the Energy-Environmental Kuznets Curve Hypothesis in the Renewable and Nonrenewable Energy Consumption Models in Egypt." International Journal of Environmental Research and Public Health 18, no. 14 (July 8, 2021): 7334. http://dx.doi.org/10.3390/ijerph18147334.
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The Environmental Kuznets Curve (EKC) association between income and pollution emissions proxies has been extensively tested in the environmental literature. However, testing of the energy-EKC is scanty. This present research examined the energy–EKC in the cubic relationship of economic growth and different renewable and nonrenewable energy proxies in Egypt from 1965–2019. In the long run, we corroborate the N-shaped relationships in the case of primary energy, oil, and coal consumption models, and confirm the long run energy–EKC association in these energy proxies. Moreover, we find turning points of the N-curve for these energy sources in 1998, 2000, and 1979–2005, in primary energy, oil, and coal consumption models, respectively. Hence, economic growth is responsible for increasing nonrenewable energy consumption and has environmental consequences in Egypt. In the short run, we find N-shaped relationships in the case of primary energy, oil, and coal consumption. Further, we find an inverted U-shaped relationship in the case of natural gas consumption. In addition, we corroborate an inverted N-shaped relationship in the case of hydroelectricity consumption, a renewable energy source. Hence, we confirm the short-run energy–EKC relationship in all investigated renewable and nonrenewable energy proxies.
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Setyadharma, Andryan, Shanty Oktavilia, Yayu Tika Atmadani, and Indah Fajarini Sri Wahyuningrum. "A New Insight of the Existence of the Environmental Kuznets Curve in Indonesia." E3S Web of Conferences 202 (2020): 03023. http://dx.doi.org/10.1051/e3sconf/202020203023.
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Natural resources play as vital inputs for economic activities, mainly in developing countries. However, massive use of natural resources puts more pressure on the environment and as the result, the quality of environment is deteriorating. The body of economic literature have shown that income is associated with harm to the natural environment. The relationship between income and degradation of the environment is known as the Environmental Kuznets Curve (EKC) hypothesis. Previous studies of EKC hypothesis in Indonesia are still limited and the results are inconclusive due to different results. Therefore, the aim of this study is to present a new insight of the existence of EKC in Indonesia using different method. Most of previous studies of EKC in Indonesia employ Autoregressive distributed lag (ARDL) method, while this study uses data panel regression method from 33 provinces in Indonesia during 2012 to 2018. The result confirms the existence of EKC hypothesis in Indonesia. This study also estimates the turning point, a level of income that starts give positive impact on the environment. This result gives new insight to the existing literature. The policy implication for policymakers are straightforward, i.e. improve wealth of the society through higher income for the protection of the environment.
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Silvère Konan, Yao, and Kodjo Aklobessi. "Revisiting the environmental Kuznets curve: Evidence from West Africa." Environmental Economics 12, no. 1 (May 6, 2021): 64–75. http://dx.doi.org/10.21511/ee.12(1).2021.06.
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This paper analyzes the revenue-pollution relationship by revisiting the Environmental Kuznets Curve (EKC) hypothesis for West African countries over the period of 1980–2014. The study approximates the income measurement by GDP per capita and uses carbon dioxide (CO2), nitrogen oxide (NO2), and methane emissions as various environmental quality measures. The paper uses parametric and non-parametric estimation techniques to test the EKC hypothesis. The results support the existence of the U-inverted relationship between income and methane emission, on one hand, and between income and nitrogen dioxide emission on the other. The estimates also show a mixed result for the U-inverted hypothesis between income and carbon dioxide emissions. Thus, the verification of the curve depends on the estimation techniques and the measurement of the pollutant used. The obtained results led to the conclusion that the EKC hypothesis is validated for West African countries.
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Iskandar, Azwar. "ECONOMIC GROWTH AND CO2 EMISSIONS IN INDONESIA : INVESTIGATING THE ENVIRONMENTAL KUZNETS CURVE HYPOTHESIS EXISTENCE." Jurnal BPPK : Badan Pendidikan dan Pelatihan Keuangan 12, no. 1 (July 5, 2019): 42–52. http://dx.doi.org/10.48108/jurnalbppk.v12i1.369.
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Peningkatan ancaman polusi udara dan pemanasan global telah dibahas secara luas dalam berbagai event internasional. Environmental Kuznets Curve (EKC) menjadi sebuah isu riset yang memotivasi banyak studi dalam mengklaim adanya hubungan antara pendapatan ekonomi dan emisi CO2 melalui pembuktian hipotesis inverted U-shaped, dimana hipotesis ini menjelaskan bahwa pada tahap awal pertumbuhan ekonomi, degragdasi lingkungan akan terjadi, tetapi pada tahap puncak pertumbuhannya justru akan mengurangi emisi CO2 bagi lingkungan. Penelitian ini bertujuan untuk menguji keberadaan Environmental Kuznets Curve (EKC) Hypothesis dalam hubungan antara pertumbuhan ekonomi dan emisi karbondioksida di Indonesia selama periode tahun 194-2016. Penelitian ini menggunakan teknik analisis Autoregressive Distributed Lag (ARDL) co-integration. Data yang digunakan merupakan data sekunder yang berasal dari World Bank Development Indicators. Hasil penelitian mengindikasikan bahwa hipotesis EKC tidak terdapat di Indonesia. Selain itu, permodelan jangka panjang menunjukkan bahwa pertumbuhan ekonomi khususnya pada sektor electricity and heat production memberikan dampak positif dan signifikan terhadap emisi karbondioksida di Indonesia. Atas dasar temuan-temuan tersebut, penelitian ini mengisyaratkan adanya kebutuhan mendesak bagi Indonesia untuk menekankan perluasan service intensive economy daripada resource intensive, serta pengembangan sumber-sumber energi terbarukan dalam rangka memitigasi degradasi lingkungan seiring perkembangan dan pertumbuhan ekonomi.
The increasing threat of air pollution and global warming has been widely discussed in various international events. Environmental Kuznets Curve (EKC) become an independent research issue and motivated a bulky number of studies that claims an inverted U-shaped relationship between income and CO2 emission : at early stage of development, environmental degradation occurs, but at certain point the increase in economic development will decrease CO2 emission. This study aims to investigate the existing of EKC hypothesis and the dynamic relationship between CO2 emission and economic growth and in Indonesia case the period 1981-2016 using Autoregressive Distributed Lag (ARDL) co-integration framework. Data were retrieved from World Bank Development Indicators. The findings reveal that EKC Hypothesis does not exist. In addition, the long run model show that economy growth appear to have significant positive impact on CO2 emission especially from electricity and heat production. These findings suggest a dire need for Indonesia to shift towards service intensive economy rather than resource intensive, and alternative renewable energy sources in order to mitigate environmental degradation as well as promote economic development.
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Galuh Nuansa, Citrasmara, and Wahyu Widodo. "Environmental Kuznets Curve Hypothesis: A Perspective of Sustainable Development in Indonesia." E3S Web of Conferences 31 (2018): 09021. http://dx.doi.org/10.1051/e3sconf/20183109021.
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Sustainable development with three main pillars, namely environmental, economic, and social, is the concept of country’s development to achieve inclusive economic growth, good environmental quality, and improvement of people's welfare. However, the dominance of economic factors cause various environmental problem. This phenomenon occurs in most of developing countries, including in Indonesia. The relationship between economic activity and environmental quality has been widely discussed and empirically tested by scholars. This descriptive research analysed the hypothesis called Environmental Kuznets Curve (EKC) from a perspective of sustainable development in Indonesia. EKC hypothesis illustrates the relationship between economic growth and environmental degradation forming an inverted U-curve, indicating that at the beginning of development, environmental quality will decrease along with increasing economic growth, and then reached a certain point the environmental quality will gradually improve. In this paper will be discussed how the relationship between environmental quality and economic growth in Indonesia was investigated. The preliminary results show that most of the empirical studies use the conventional approach, in which the CO2 emission used as the proxy of environmental degradation. The existence of inverted U-curve is also inconclusive. Therefore, the extension research on the relationship between economic growth and environmental quality in Indonesia using the EKC hypothesis is required.
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Mahmood, Haider, Nabil Maalel, and Olfa Zarrad. "Trade Openness and CO2 Emissions: Evidence from Tunisia." Sustainability 11, no. 12 (June 14, 2019): 3295. http://dx.doi.org/10.3390/su11123295.
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We investigated the asymmetrical effects of trade openness on CO2 emissions and the environmental Kuznets curve (EKC) hypothesis in Tunisia during the period 1971–2014. The integration analysis suggests a mixed order of integration and the cointegration analysis corroborates the long- and short-run relationships. The EKC was proved true with a turning point gross domestic product (GDP) of approximately 292.335 billion constant US dollars, and Tunisia was found at the first phase of EKC. Moreover, we corroborate the asymmetrical effects of trade openness on CO2 emissions. The effects of increasing and decreasing trade openness are found to be positive and insignificant on CO2 emissions, respectively. The pollution haven hypothesis is found to be true in Tunisia, along with negative environmental effects associated with increasing foreign trade.
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Beşe, Emrah, and Salih Kalayci. "Environmental Kuznets curve (EKC): Empirical relationship between economic growth, energy consumption, and CO2 emissions: Evidence from 3 developed countries." Panoeconomicus, no. 00 (2020): 4. http://dx.doi.org/10.2298/pan180503004b.
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In this study, the environmental Kuznets curve (EKC) hypothesis is examined for 3 developed countries, which are Denmark, the United Kingdom, and Spain, for the period between 1960 and 2014. The EKC hypothesis is examined under 2 nexuses which are GDP, CO2 and energy consumption, and GDP, CO2, energy consumption and the square of GDP. Causal and long-term relationships between GDP, CO2, and energy consumption are examined for these 3 developed countries using the ARDL bounds test, the Toda and Yamamoto Granger non-causality test, the VAR Granger Causality/Block Exogeneity Wald test, and the Johansen cointegration test. Long-term relationships between GDP, CO2, energy consumption, and the square of GDP are examined by the Johansen cointegration test. The EKC hypothesis is not confirmed for Denmark, the United Kingdom, and Spain, and the neutrality hypothesis is confirmed for these 3 developed countries. Unidirectional causality running from energy consumption to CO2 is found for Denmark, and unidirectional causality running from CO2 to energy consumption is found for the United Kingdom.
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SHAHBAZ, MUHAMMAD, SALEHEEN KHAN, AMJAD ALI, and MITA BHATTACHARYA. "THE IMPACT OF GLOBALIZATION ON CO2 EMISSIONS IN CHINA." Singapore Economic Review 62, no. 04 (September 2017): 929–57. http://dx.doi.org/10.1142/s0217590817400331.
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This paper examines the environmental kuznets curve (EKC) hypothesis for China in the presence of globalization. We have applied Bayer and Hanck combined cointegration test as well as the auto regressive distributed lag (ARDL) bounds testing approach to cointegration by accommodating structural breaks in the series. The causal relationship among the variables is investigated by applying the vector error correction method (VECM) causality framework. The study covers the period of 1970–2012. The results confirm the presence of cointegration among the variables. Furthermore, the EKC hypothesis is valid in China both in short and long runs. Coal consumption increases carbon dioxide (CO2) emissions significantly. The overall index and sub-indices of globalization indicate that globalization in China is decreasing CO2 emissions. The causality results reveal that economic growth causes CO2 emissions confirming the existence of the EKC hypothesis. The feedback effect exists between coal consumption and CO2 emissions. CO2 emissions Granger causes globalization (social, economic and political).
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Bongers, Anelí. "The Environmental Kuznets Curve and the Energy Mix: A Structural Estimation." Energies 13, no. 10 (May 22, 2020): 2641. http://dx.doi.org/10.3390/en13102641.
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The Environmental Kuznets Curve (EKC) hypothesis establishes the existence of an inverted U-shaped relationship between income and environmental deterioration. This paper studies the relationship between the energy mix and pollutant emissions and uses an environmental dynamic general equilibrium model to carry out a structural estimation of the EKC hypothesis. The model considers a three-input production function, including energy. Energy is a composite of fossil fuels and renewable energy sources. The flow of pollutant emissions depends on fossil fuels’ consumption, which accumulates in a pollution stock, resulting in a negative externality that adversely impacts aggregate productivity. Simulations of the model support the existence of a steady-state EKC relationship between Gross Domestic Product (GDP) and the stock of pollution, where the negative slope side of the curve is very flat. We find that (i) the EKC hypothesis is only fulfilled when the elasticity of substitution between fossil fuel and renewable energy is high enough; (ii) the higher the elasticity of the productivity to the stock of pollution, the lower the optimal stock of pollution as a function of output; and (iii) emissions efficiency has a positive impact on the environment in the short-run, but negative in the long-run.
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Li, Zhe, Renjin Sun, Manman Qin, and Dongou Hu. "Gasoline to Diesel Consumption Ratio: A New Socioeconomic Indicator of Carbon Dioxide Emissions in China." Sustainability 12, no. 14 (July 13, 2020): 5608. http://dx.doi.org/10.3390/su12145608.
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In recent years, gross domestic product (GDP) has grown rapidly in China, but the growth rate of carbon dioxide (CO2) emissions has begun to decline. Some scholars have put forward the environmental Kuznets curve (EKC) hypothesis for CO2 emissions in China. This paper utilized the panel data of 30 provinces in China from 1997 to 2016 to verify the EKC hypothesis. To explore the real reasons behind the EKC, the index gasoline to diesel consumption ratio (GDCR) was introduced in this paper. The regression results showed that CO2 emissions and GDP form an inverted U-shaped curve. This means that the EKC hypothesis holds. The regression results also showed that a 1% GDCR increase was coupled with a 0.118186% or 0.114056% CO2 emission decrease with the panel fully modified ordinary least squares or panel dynamic ordinary least squares method, respectively. This means that CO2 emissions negatively correlate with GDCR. From the discussion of this paper, the growth rate reduction of CO2 emissions is caused by the economic transition in China. As changes of GDCR can, from a special perspective, reflect the economic transition, and as GDCR is negatively correlated with CO2 emissions, GDCR can sometimes be used as a new socioeconomic indicator of carbon dioxide emissions in China.
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Li, Yubo, Qingtao Xu, Biao Gao, and Shougang Yan. "Empirical Study on the Relationship between Economic Growth and Environmental Pollution Level in Jilin Province." Advanced Materials Research 962-965 (June 2014): 2129–32. http://dx.doi.org/10.4028/www.scientific.net/amr.962-965.2129.
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Based on the Environmental Kuznets Curve hypothesis (EKC), the measurement models of various environmental pollution indicators with economic growth indicators were obtained by using the regression simulation of PASW Statistics 18.0 statistical software based on the data of environmental indicators and economic growth indicators in Jilin Province, and analyzed the characteristics of EKC. The result indicated that the EKC of environmental indicators did not completely accord with the “U” shape. The EKC of industrial wastewater discharge amount showed the “U + inverted U” shape, the inflection point appeared in 2009; The EKC of industrial waste gas emissions was in continuous growth without an inflection point; The EKC of industrial solid waste output showed the left half part of the “U” shape, the inflection point will appear in 2014. The EKC of industrial dust emissions was a shape of logarithmic function, being in a gradually decreasing trend without an inflection point; The EKC of industrial SO2 emissions showed the “U + inverted U” shape, the inflection point appeared in 2008; The EKC of COD discharge amount of industrial wastewater showed the unobvious “U + inverted U” shape, the inflection point appeared in 2009. The overall environmental pollution level in Jilin Province was in the stage of continuous improvement.
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Kiliç, Cüneyt, and Feyza Balan. "Is there an environmental Kuznets inverted-U shaped curve?" Panoeconomicus 65, no. 1 (2018): 79–94. http://dx.doi.org/10.2298/pan150215006k.
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This study examines the relationship among carbon dioxide (CO2) emissions, income, energy consumption, trade openness, financial development and institutional quality based on the environmental Kuznets curve (EKC) hypothesis in 151 countries for the period 1996-2010, using the pooled ordinary least squares methods. The results support cubic specification of the EKC hypothesis, which assumes a cubic polynomial inverted-U shaped relationship between income and environmental degradation. Other empirical results indicate that energy consumption, trade openness, financial development and institutional quality are significant variables in explaining CO2 emissions.
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Rana, Ritu, and Manoj Sharma. "Dynamic causality testing for EKC hypothesis, pollution haven hypothesis and international trade in India." Journal of International Trade & Economic Development 28, no. 3 (November 7, 2018): 348–64. http://dx.doi.org/10.1080/09638199.2018.1542451.
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Okon, Emmanuel Okokondem. "Population structure and environmental degradation." Bussecon Review of Social Sciences (2687-2285) 1, no. 2 (October 20, 2019): 18–27. http://dx.doi.org/10.36096/brss.v1i2.110.
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The primary objective of this paper is to test the hypothesis that the population age structure could contribute to carbon dioxide emission levels (environmental degradation) in Nigeria. Real income (Gross Domestic Product) was used as another determinant of CO2 emissions to test the EKC hypothesis in this study. Also, the autoregressive distributed lag (ARDL) econometric technique was applied in this paper to annual time series data from 1970 to 2018. The results show that age structure’s influence on the environment is significant. As expected, young adults (LOGYONG, i.e., ages 15-64) and children (LOGCHIL, i.e., ages 0-14) are environmentally intensive (due to energy-intensive goods consumed). But the older age group (LOGOLD i.e., ages 65 and above) exert a negative effect. The results of long-term estimation for the population structure-induced EKC hypothesis show that none of the coefficients of economic growth were statistically significant at any of the conventional levels. In other words, this finding did not prove the existence of EKC hypothesis. However, appropriate macroeconomic policies, technological innovations, and institutional developments are very important in maintaining a sound environment in Nigeria.
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Ahmed, Khalid, and Wei Long. "An empirical analysis of CO2emission in Pakistan using EKC hypothesis." Journal of International Trade Law and Policy 12, no. 2 (June 14, 2013): 188–200. http://dx.doi.org/10.1108/jitlp-10-2012-0015.
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Gokmenoglu, Korhan K., and Nigar Taspinar. "Testing the agriculture-induced EKC hypothesis: the case of Pakistan." Environmental Science and Pollution Research 25, no. 23 (May 31, 2018): 22829–41. http://dx.doi.org/10.1007/s11356-018-2330-6.
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Katircioğlu, Salih Turan. "Testing the tourism-induced EKC hypothesis: The case of Singapore." Economic Modelling 41 (August 2014): 383–91. http://dx.doi.org/10.1016/j.econmod.2014.05.028.
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RAYMOND, LEIGH. "Economic Growth as Environmental Policy? Reconsidering the Environmental Kuznets Curve." Journal of Public Policy 24, no. 3 (December 2004): 327–48. http://dx.doi.org/10.1017/s0143814x04000145.
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Some research has posited that while initially damaging to the environment, continued economic growth eventually leads to superior environmental quality. This relationship is often described as an ‘Environmental Kuznets Curve’ (EKC), after a similar hypothesis regarding income inequality made by economist Simon Kuznets. Following such findings, the EKC is sometimes offered as a rationale for encouraging economic growth as the best environmental policy option. This paper reconsiders the policy-relevance of the EKC idea, drawing on a wide range of international data collected in the Environmental Sustainability Index (ESI) project. Specifically, it tests the theoretical arguments advanced by Arrow and others (1995) that EKC relationships are unlikely to hold for environmental problems that are intergenerational in time or spread across national boundaries. The results of this research substantially confirm those arguments, providing more evidence that the EKC idea is an inadequate guide for environmental policy makers around the globe.
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Mazur, Anna, Zaur Phutkaradze, and Jaba Phutkaradze. "Economic Growth and Environmental Quality in the European Union Countries – Is there Evidence for the Environmental Kuznets Curve?" International Journal of Management and Economics 45, no. 1 (March 1, 2015): 108–26. http://dx.doi.org/10.1515/ijme-2015-0018.
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Abstract This research empirically explores the relation between carbon dioxide emission and economic growth during the period 1992-2010, using panel data on the European Union countries. Both fixed and random effect models are employed to test the Environmental Kuznets Curve (EKC) relationship between CO2 emissions and GDP per capita. While no U-shaped EKC was confirmed empirically for all 28 current EU member states, the graphical analysis demonstrates a justified turning point for CO2 emissions as GDP per capita reaches the level of 23,000 USD. Furthermore, there is a firm empirical ground for the EKC hypothesis based on data from 16 older, relatively high-income EU states. Thus, though not empirically confirmed, there is ample data verifying the existence of the EKC in EU economies.
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Ișik, Cem, Munir Ahmad, Uğur Korkut Pata, Serdar Ongan, Magdalena Radulescu, Festus Fatai Adedoyin, Engin Bayraktaroğlu, Sezi Aydın, and Ayse Ongan. "An Evaluation of the Tourism-Induced Environmental Kuznets Curve (T-EKC) Hypothesis: Evidence from G7 Countries." Sustainability 12, no. 21 (November 3, 2020): 9150. http://dx.doi.org/10.3390/su12219150.
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This paper analyzes the legitimacy of the Environmental Kuznets Curve (EKC) hypothesis for a group of seven (G7) countries over the period 1995–2015. In addition to testing the EKC speculation, the authors also would like to understand the ways in which increases in renewable energy consumption and the international tourism receipt affect the CO2 emissions in G7 countries, because the energy and tourism sectors may have considerable direct impacts on CO2 emissions. In this investigation, a panel bootstrap cointegration test and an augmented mean group (AMG) estimator were applied. The empirical findings indicate that the tourism-induced EKC hypothesis is valid only for France. Additionally, it was detected that a rise in renewable energy consumption has a negative (reduction) impact on CO2 emissions in France, Italy, the UK, and the US. However, an increase in the receipt of international touristm has a positive (additional) impact on Italy’s CO2 emissions. Hence, this country’s decision-makers should re-review their tourism policy to adopt a renewable-inclusive one for sustainable tourism and the environment.
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O. Okon, Emmanuel. "Empirical Analysis of the Environmental Kuznets Curve for Co2 Emissions in Nigeria: The Role of Industrialization and Urbanization." Sumerianz Journal of Economics and Finance, no. 312 (December 22, 2020): 265–72. http://dx.doi.org/10.47752/sjef.312.265.272.
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The proposed inverted U-type relationship between environmental degradation and per capita income under EKC hypothesis has been examined in this paper for Nigeria over the period 1970-2019. Using the ARDL bounds testing approach to cointegration and ECM (OLS Approach), the EKC hypothesis does not seem to hold both in short-run and long-run. The estimated coefficients of the long-run relationship shows that LOGCO2(-1) is the only statistically significant variable explaining environmental degradation while the short run results indicate that D(LOGCO2(-1)) is the most significant variable in explaining environmental degradation in Nigeria followed by D(LOGIND(-1)).
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Arango-Miranda, Raúl, Robert Hausler, Rabindranarth Romero-Lopez, Mathias Glaus, and Sara Ibarra-Zavaleta. "Carbon Dioxide Emissions, Energy Consumption and Economic Growth: A Comparative Empirical Study of Selected Developed and Developing Countries. “The Role of Exergy”." Energies 11, no. 10 (October 7, 2018): 2668. http://dx.doi.org/10.3390/en11102668.
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Diverse factors may have an impact in carbon dioxide (CO2) emissions; thus, three main contributors, energy consumption, gross domestic product (GDP) and an exergy indicator are examined in this work. This study explores the relationship between economic growth and energy consumption by means of the hypothesis postulated for the Environmental Kuznets Curve (EKC). Panel data for ten countries, from 1971 to 2014 have been studied. Despite a wide gamma of research on the EKC, the role of an exergy variable has not been tested to find the EKC; for this reason, exergy analysis is proposed. Exergy analyses were performed to propose an exergetic indicator as a control variable and a comparative empirical study is developed to study a multivariable framework with the aim to detect correlations between them. High correlation between CO2, GDP, energy consumption, energy intensity and trade openness are observed, on the other hand not statistically significant values for trade openness and energy intensity. The results do not support the EKC hypothesis, however exergy intensity opens the door for future research once it proves to be a useful control variable. Exergy provides opportunities to analyze and implement energy and environmental policies in these countries, with the possibility to link exergy efficiencies and the use of renewables.
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Ogundari, Kolawole, Adebola Abimbola Ademuwagun, and Olajide Abraham Ajao. "Revisiting Environmental Kuznets Curve in Sub-Sahara Africa." International Journal of Social Economics 44, no. 2 (February 13, 2017): 222–31. http://dx.doi.org/10.1108/ijse-02-2015-0034.
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Purpose The purpose of this paper is to revisit the Environmental Kuznets Curve (EKC) model in Sub-Saharan Africa (SSA) countries by focusing on two indicators of environmental change (EC), namely rate of deforestation (RD) and all greenhouse gas emissions from agriculture (Agric_GHG) with aim of addressing two key objectives in the study. First, to investigate whether the EKC hypothesis exists for both indicators considered in the region. Second, to examine the effects of macroeconomic and institutional variables on both indicators in the study. Design/methodology/approach The authors employ a balanced panel data covering 43 countries from 1990-2009 in the study. Subsequently, the study uses serial correlation/autoregressive order one corrected cross-section time series model based on Feasible Generalized Least Square method. Findings The empirical results show that the EKC exists (i.e. as inverted U-shaped) only for all GHG emissions from agriculture. Agricultural production and trade openness increase significantly both indicators of EC considered in the study. Other results show that, population growth reduces significantly Agric_GHG, while economic growth increases significantly RD in SSA. Originality/value This is the very first study to investigate the applicability of EKC hypothesis to emissions from non-oil sector such as agriculture (i.e. all GHG emissions from agriculture) in the region.
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Gill, Fouzia Latif, Abid Rashid Gill, K. Kuperan Viswanathan, and Mohd Zaini B. Abid Karim. "Analysis of pollution haven hypothesis (PHH) and environmental Kuznets curve (EKC) in selected Association of South-East Asian Nations (ASEAN) countries." Review of Economics and Development Studies 6, no. 1 (March 31, 2020): 83–95. http://dx.doi.org/10.47067/reads.v6i1.186.
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The Pollution Haven Hypothesis (PHH) claims that following the international trade, developing countries tend to specialize and export pollution-intensive goods to advanced countries. The current study examines the PHH claim in the context of exports of the six major ASEAN countries to Japan in the Environmental Kuznets Curve (EKC) framework for the period 1989-2017. The Fully Modified Ordinary Least Square (FMOLOS) panel co-integration approach has been employed to estimate the coefficients of the EKC model. The results reveal that the EKC does exist while the exports of pollution-intensive goods from the ASEAN to Japan increase the CO2 emission. The study concludes that world pollution cannot be curtailed unless advanced countries reduce the consumption of pollution-intensive goods. Therefore, an integrated well-devised global program is imperative to tackle the alarming issue of global warming, and advanced countries should lead this program.
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Shahbaz, Muhammad, and Avik Sinha. "Environmental Kuznets curve for CO2 emissions: a literature survey." Journal of Economic Studies 46, no. 1 (January 7, 2019): 106–68. http://dx.doi.org/10.1108/jes-09-2017-0249.
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Purpose The purpose of this paper is to provide a survey of the empirical literature on environmental Kuznets curve (EKC) estimation of carbon dioxide (CO2) emissions over the period of 1991–2017. Design/methodology/approach This survey categorizes the studies on the basis of power of income in empirical models of EKC. It has been hypothesized that the EKC shows an inverted U-shaped association between economic growth and CO2 emissions. Findings For all the contexts, the results of EKC estimation for CO2 emissions are inconclusive in nature. The reasons behind this discrepancy can be attributed to the choice of contexts, time period, explanatory variables, and methodological adaptation. Research limitations/implications The future studies in this context should not only consider new set of variables (e.g. corruption index, social indicators, political scenario, energy research and development expenditures, foreign capital inflows, happiness, population education structure, public investment toward alternate energy exploration, etc.), but also the data set should be refined, so that the EKC estimation issues raised by Stern (2004) can be addressed. Originality/value By far, no study in the literature of ecological economics has focused on the empirical estimation of EKC for CO2 emissions. This particular context has been used for this study, as CO2 is one of the highest studied pollutants in the ecological economics, and especially within the EKC hypothesis framework.
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Ibrahim, Mansor H., and Syed Aun R. Rizvi. "Emissions and trade in Southeast and East Asian countries: a panel co-integration analysis." International Journal of Climate Change Strategies and Management 7, no. 4 (November 16, 2015): 460–75. http://dx.doi.org/10.1108/ijccsm-11-2013-0131.
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Purpose – The purpose of this paper is to analyse the implication of trade on carbon emissions in a panel of eight highly trading Southeast and East Asian countries, namely, China, Indonesia, South Korea, Malaysia, Hong Kong, The Philippines, Singapore and Thailand. Design/methodology/approach – The analysis relies on the standard quadratic environmental Kuznets curve (EKC) extended to include energy consumption and international trade. A battery of panel unit root and co-integration tests is applied to establish the variables’ stochastic properties and their long-run relations. Then, the specified EKC is estimated using the panel dynamic ordinary least square (OLS) estimation technique. Findings – The panel co-integration statistics verifies the validity of the extended EKC for the countries under study. Estimation of the long-run EKC via the dynamic OLS estimation method reveals the environmentally degrading effects of trade in these countries, especially in ASEAN and plus South Korea and Hong Kong. Practical implications – These countries are heavily dependent on trade for their development processes, and as such, their impacts on CO2 emissions would be highly relevant for assessing their trade policies, along the line of the gain-from-trade hypothesis, the race-to-the-bottom hypothesis and the pollution-safe-haven hypothesis. Originality/value – The analysis adds to existing literature by focusing on the highly trading nations of Southeast and East Asian countries. The results suggest that reassessment of trade policies in these countries is much needed and it must go beyond the sole pursuit of economic development via trade.
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Lieb, Christoph M. "The environmental Kuznets curve and satiation: a simple static model." Environment and Development Economics 7, no. 3 (July 2002): 429–48. http://dx.doi.org/10.1017/s1355770x02000268.
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The environmental Kuznets curve (EKC) is a hypothesis stating that pollution rises with income at low income levels but falls at higher ones. We analyse the EKC in a representative consumer model in which pollution is generated by consumption and can be abated. We show that at low income levels no abatement is optimal and pollution increases with income. Once abatement expenditures are positive, we demonstrate that satiation in consumption is not only sufficient to find an EKC, but a tendency to satiation—or in other words the condition that environmental quality is a normal good—is even necessary if we assume a standard functional form for the pollution function. Finally, we reconsider the results of two related models of the literature: We verify that the relationship between the income elasticity of demand for environmental quality and the EKC is ambiguous.(JEL: D62, O40, Q20)
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Balin, Billur Engin, and H. Dilara Mumcu Akan. "EKC Hypothesis and the Effect Of Innovation: A Panel Data Analysis." Pressacademia 4, no. 1 (March 31, 2015): 81. http://dx.doi.org/10.17261/pressacademia.201519952.
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Polemis, Michael L., and Mike G. Tsionas. "Bayesian nonlinear panel cointegration: an empirical application to the EKC hypothesis." Letters in Spatial and Resource Sciences 12, no. 2 (June 19, 2019): 113–20. http://dx.doi.org/10.1007/s12076-019-00230-4.
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Rofiuddin, Mohammad, Siti Aisyah, Desy Nur Pratiwi, Arna Asna Annisa, Rosana Eri Puspita, and Rifda Nabila. "Does Economic Growth Reduce Pollution? Empirical Evidence from Low Income Countries." E3S Web of Conferences 125 (2019): 06002. http://dx.doi.org/10.1051/e3sconf/201912506002.
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The issue of environmental degradation has long been associated as a residue of the economic development process, especially in low income countries. Development activities have to continue nevertheless, because people's welfare is the goal. This study aims to find the impact of economic growth, population and energy consumption to environmental pollution. Another purpose is to prove the Environmental Kuznets Curve (EKC) hypothesis. The methods utilized is panel data regression with fixed effect model using Drisscol-Kraay estimator. The result of the study indicates that increased per capita GDP and population leads to environmental pollution in low income countries, while energy consumption has no significant effect. The result also confirmed the EKC hypothesis in low income countries.
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Pavlović, Aleksandra, Milica Njegovan, Andrea Ivanišević, Mladen Radišić, Aleksandar Takači, Alpar Lošonc, and Sebastian Kot. "The Impact of Foreign Direct Investments and Economic Growth on Environmental Degradation: The Case of the Balkans." Energies 14, no. 3 (January 22, 2021): 566. http://dx.doi.org/10.3390/en14030566.
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The aspiration of this study was to examine the impact of foreign direct investments (FDI) and economic growth on environmental degradation in the Balkans for the period 1998–2019. Balkan countries were classified into two groups, high income countries (HIC) and upper-middle income countries (UMIC). Thus, two hypotheses have been set. The effect of FDI on environmental degradation was observed through pollution haven hypothesis (PHH). To examine that connection, we used Pearson correlation for all countries, HIC and UMIC. Furthermore, the impact of economic growth on environmental degradation was tested through the environmental Kuznets curve (EKC) hypothesis. For that purpose, polynomial linear regression was applied. In order to examine the dependence of environmental degradation in relation to all predictors in the model, a multivariate linear regression was used. PHH was confirmed in Serbia, Albania, Croatia, Romania, and Bulgaria, the Balkans as a whole, and HIC, and the EKC hypothesis was rejected. This paper represents a contribution to a very scarce number of studies regarding the impact of FDI and economic growth on the environment in the Balkans, as a whole. The results of this study can be useful to policy makers in the terms of inducting stricter environmental rules.
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Sheikh, Aisha, and Owais Ibni Hassan. "An Empirical Analysis of the Environmental Kuznets Curve for River Water Pollution in Uttar Pradesh." Indian Economic Journal 68, no. 1 (March 2020): 101–17. http://dx.doi.org/10.1177/0019466220963512.
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This article attempts to test the environmental Kuznets curve (EKC) hypothesis for river water pollution for a panel dataset of 15 districts of Uttar Pradesh. There are sharp socio-economic and demographic variations within India; therefore, a regional study can give a better insight into the pollution income relationship of a specific region compared to a national study. Panel unit root tests, Pedroni cointegration test and fully modified ordinary least square (FMOLS) method have been employed to investigate EKC for two water pollutants—biochemcial oxygen demand (BOD) and total coliform (TC). Findings suggest that there is no evidence of an EKC for BOD, but results validate the existence of an EKC for TC. The Swachha Bharat Mission launched in 2014 aimed at eliminating open defecation and increasing toilet access in rural India can be a credited for the reduction in TC levels since 2014. The success of NAMAMI Gange so far seems to be localised to regions where political thrust has expedited the completion of projects.
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Twerefou, Daniel Kwabena, Frank Adusah-Poku, and William Bekoe. "An empirical examination of the Environmental Kuznets Curve hypothesis for carbon dioxide emissions in Ghana: an ARDL approach." Environmental & Socio-economic Studies 4, no. 4 (December 1, 2016): 1–12. http://dx.doi.org/10.1515/environ-2016-0019.
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AbstractThe Environmental Kuznets Curve (EKC) hypothesis postulates an inverted U-shaped relationship between different pollutants and economic growth. In Ghana, as in many other developing countries, there exist scanty studies that confirm or otherwise the EKC hypothesis with regards to CO2 emissions as well as the factors that drive CO2 emissions. This work aims to bridge this knowledge gap by addressing these two major questions using data from 1970 to 2010 and the Auto Regressive Distributed Lag (ARDL) Bounds Testing approach. The results rather suggest a U-shaped relationship between per capita GDP and CO2 emissions per capita indicating the non-existence of the EKC hypothesis for CO2 in Ghana. This implies that further increase in per capita Gross Domestic Product (GDP) will only be associated with increase in CO2 emissions as the income per capita turning point of about $624 at constant 2000 prices occurred between 1996 and 1997. Furthermore, our results reveal energy consumption and trade openness are positive long run drivers of CO2 emissions. It is therefore recommended that the enhancement of trade liberalization policies should ensure the use of cleaner technologies and products while investment in cleaner energy alternatives could help reduce CO2 emissions. We also recommend the implementation of the Low Carbon Development Strategy which integrates development and climate change mitigation actions.
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Xu, Lan. "Theory of Environmental Kuznets Curve." Advanced Materials Research 361-363 (October 2011): 1697–702. http://dx.doi.org/10.4028/www.scientific.net/amr.361-363.1697.
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The paper develops a two-state-variable environmental growth model to derive the optimal growth path for the relationship between pollution and economic growth, which is used to verify the existence of the Environmental Kuznets Curve (EKC) hypothesis. It is found that the theoretical outcomes imply the existence of the EKC relationship between environmental degradation and economic growth, which is dependent on the combining effects of the pollution intensity, abatement technology of pollution emission, production technology, and the return rate of capital stock.
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He, Yu Wei, and Jin Rong Jiang. "Technology Innovation Based on Environmental Kuznets Curve Hypothesis." Advanced Materials Research 573-574 (October 2012): 831–35. http://dx.doi.org/10.4028/www.scientific.net/amr.573-574.831.
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Low-carbon economy was an inevitable choice in response to climate warming. With the deep analysis of the environmental Kuznets curve (EKC), this paper used two models to analyze the relationship between the growth of a country’s economic and the quantity of pollutants produced in the process. The empirical study compare the two groups of samples, which described energy consumption per unit of industrial added value, each group contains five symbolic provinces or municipalities in coastal and western areas. The outcome proved the positive significance of technology innovation.
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Borhan, Halimahton, and Elsadig Musa Ahmed. "Air pollutants in Malaysia : the contribution of economic growth towards it." Social and Management Research Journal 5, no. 1 (June 2, 2008): 123. http://dx.doi.org/10.24191/smrj.v5i1.5154.
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It is possible to distinguish three main channels whereby income growth affects the quality of the environment as first suggested by Grossman (1995). These are (1) scale effect, (2) composition effect and (3) techn ologi cal pr ogr ess. A recent resear ch criticism by Cole (2003 and 2004) of the environmental Kuznets curve (EKC) hypothesis is based on the occurrence of foreign direct investment and international trade. In the previous EKC literature. EKC is always estimated in the form of a single equation. However, since both income and environmental quality are endogenous variables in which they impact upon each other, the estimation of single equation relationships where simultaneity exists will produce biased and inconsistent estimates. The general objective ofthis study is to measure the relationship between economic growth and different indicators ofair pollution in Malaysia. Air pollution indicators were assessed on a number of measures: Carbon Monoxide (CO), Sulfur Dioxide (SO). Nitrogen Dioxide (NO). Ozone (0) and Particulat e Matter (PM,). The income level per capita GDP (Gross Domestic Product) were measured from the year 1996 to 2006 quarterly. This study contributes to the available literature by Hung et al (2004) AND Shen (2006), This study also estimates population density as an endogenous variable. It formulates a four- equation simultaneous model for empirical research. It tests for exogeneity using the Hausman test and estimates the simultaneity model using the two-stages least squares method. The EKC hypothesis is supported in the cases ofso] and PM/oand there are several differences found between single polynomial equation estimators commonly used in EKC literatures and simultaneous equation estimators.
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Liu, Hongbo, Hanho Kim, Shuanglu Liang, and Oh-Sang Kwon. "Export Diversification and Ecological Footprint: A Comparative Study on EKC Theory among Korea, Japan, and China." Sustainability 10, no. 10 (October 12, 2018): 3657. http://dx.doi.org/10.3390/su10103657.
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This study examines the Environmental Kuznets Curve (EKC) hypothesis by adopting a country’s ecological footprint as an indicator of environmental degradation in three East Asian countries: Japan, Korea, and China. During the development process, countries intend to balance between stabilizing export demand and maintaining sustainable economic improvement in the context of deteriorating global warming and climate change. The Environmental Kuznets Curve (henceforth, EKC) was originally developed to estimate the correlation between environment condition and economic development. In this paper, we started from the EKC model and adopted an Error Correction Methodology (henceforth, ECM) to estimate the EKC relationships in Japan, Korea (two developed countries), and China (a developing country) over the period of 1990 to 2013. Besides this, instead of only using Gross Domestic Product (henceforth, GDP), two subdivisions of trade diversification—export product diversification and export market diversification—are introduced as proxy variables for economic development in rectification of the EKC. The results demonstrate that both Korea and Japan satisfy the EKC theory by demonstrating an inverted U-shaped relationship between economic development and ecological footprint, while analysis based on data from China does not display the same tendency. For both export product diversification and market diversification, the more diversified the country’s export is, the bigger its ecological footprint. The policy implications of this econometric outcome are also discussed.
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Ghazi Alajmi, Reema. "The Relationship between Economic Growth and Municipal Solid Waste & Testing the EKC Hypothesis: Analysis for Saudi Arabia." JOURNAL OF INTERNATIONAL BUSINESS RESEARCH AND MARKETING 1, no. 5 (2016): 20–25. http://dx.doi.org/10.18775/jibrm.1849-8558.2015.15.3003.
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This paper empirically investigates two main points: application of the VECM test to examine the relationship between economic growth and municipal solid waste (MSW) generation using municipal services, GDP and population growth; and the application of the OLS regression to validate the Environmental Kuznets Curve (EKC) hypothesis for MSW over the period of 1980-2012 in Saudi Arabia. The results show that there is a long-standing relationship between the variables under examination, and that the EKC hypothesis is not valid for MSW in Saudi Arabia. Even though there is an inverted U-shaped because the turning point is very high compared with GDP in that period. Saudi Arabia needs to implement new policies and adopt new technologies that help to reduce MSW generation in order to achieve sustainable development in future.
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Zhai, Xiaowei, Zhuo Cheng, Keyu Ai, and Bo Shang. "Research on Environmental Sustainability of Coal Cities: A Case Study of Yulin, China." Energies 13, no. 10 (May 14, 2020): 2470. http://dx.doi.org/10.3390/en13102470.
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Coal cities are an essential impetus for economic development and urbanization processes in China. However, a series of environmental issues provoked by resource exploitation cause the environmental sustainability of coal cities to face enormous challenges. Therefore, on the basis of the time series data of Yulin City from 1996 to 2017, this paper explores the nexus between socioeconomic development and industrial “three wastes” emissions by adopting the Tapio decoupling model, the environmental Kuznets curve (EKC) hypothesis, and the vector auto-regressive (VAR) model. The results show that Yulin’s economic development remains in an extensive stage and will not decouple from the environmental pollution in a short time. Except for the nexus of industrial solid waste and economic growth, which is an inverted U-shaped, the EKC hypothesis is not valid for industrial wastewater and industrial waste gas. Through the VAR (2) model, the impact of per capita gross domestic product (GDP) on industrial waste emissions is consistent with the results of the EKC hypothesis. Moreover, industrial waste emissions have a positive correlation with the per capita raw coal output, the energy consumption per unit of GDP, and the proportion of secondary industry. Hence, it is necessary to formulate targeted measures from industrial restructuring, industrial chain extension, governance model optimization, and waste comprehensive utilization to realize the environmental sustainability of coal cities.
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Madaleno, Mara, and Victor Moutinho. "Analysis of the New Kuznets Relationship: Considering Emissions of Carbon, Methanol, and Nitrous Oxide Greenhouse Gases—Evidence from EU Countries." International Journal of Environmental Research and Public Health 18, no. 6 (March 12, 2021): 2907. http://dx.doi.org/10.3390/ijerph18062907.
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Decreased greenhouse gas emissions (GHG) are urgently needed in view of global health threat represented by climate change. The goal of this paper is to test the validity of the Environmental Kuznets Curve (EKC) hypothesis, considering less common measures of environmental burden. For that, four different estimations are done, one considering total GHG emissions, and three more taking into account, individually, the three main GHG gases—carbon dioxide (CO2), nitrous oxide (N2O), and methane gas (CH4)—considering the oldest and most recent economies adhering to the EU27 (the EU 15 (Old Europe) and the EU 12 (New Europe)) separately. Using panel dynamic fixed effects (DFE), dynamic ordinary least squares (DOLS), and fully modified ordinary least squares (FMOLS) techniques, we validate the existence of a U-shaped relationship for all emission proxies considered, and groups of countries in the short-run. Some evidence of this effect also exists in the long-run. However, we were only able to validate the EKC hypothesis for the short-run in EU 12 under DOLS and the short and long-run using FMOLS. Confirmed is the fact that results are sensitive to models and measures adopted. Externalization of problems globally takes a longer period for national policies to correct, turning global measures harder and local environmental proxies more suitable to deeply explore the EKC hypothesis.
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Mahmood, Haider, Nabil Maalel, and Muhammad Shahid Hassan. "Probing the Energy-Environmental Kuznets Curve Hypothesis in Oil and Natural Gas Consumption Models Considering Urbanization and Financial Development in Middle East Countries." Energies 14, no. 11 (May 29, 2021): 3178. http://dx.doi.org/10.3390/en14113178.
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Economic growth, urbanization, and financial market development (FMD) may increase energy demand in any economy. Non-renewable sources of energy consumption, i.e., oil consumption and natural gas consumption (NGC), could have environmental consequences. We examine the effects of economic growth, urbanization, and FMD on the oil consumption and NGC in Middle East countries using the period 1975–2019. In the panel results, we found a positive effect of income and a negative effect of income-squared on oil and natural gas consumption. Hence, we corroborate the existence of the environmental Kuznets curve (EKC) hypothesis in oil and natural gas consumption models of the Middle East region. Urbanization has a positive effect on oil and natural gas consumption. FMD has a positive effect on oil consumption and has a negative effect on NGC. From the long-run, country-specific results, we validate the existence of the EKC hypothesis in the oil consumption models of Iran and Iraq. The EKC is also found in the natural gas consumption models of Iran, Kuwait, and the UAE. From the short-run results, the EKC hypothesis is validated in the oil consumption models of Iran, Iraq, and Israel. The EKC is also corroborated in the NGC models of Iran, Kuwait, and the UAE. In the long run, urbanization has a positive effect on oil consumption in Iraq, Kuwait, Saudi Arabia, and Qatar. Further, urbanization has a positive effect on the NGC in Iraq, Israel, and Saudi Arabia. Conversely, urbanization has a negative effect on oil consumption in Israel. In the short run, urbanization has a positive effect on oil consumption in Iraq, Israel, Kuwait, and Qatar. Moreover, urbanization has a positive effect on the NGC in Iraq. On the other hand, urbanization has a negative effect on oil consumption in Saudi Arabia and Iran. In the long run, FMD has a positive effect on oil consumption in Saudi Arabia and Israel. In the short run, FMD has a positive effect on oil consumption in Israel, Kuwait, and Saudi Arabia. In contrast, FMD has a negative effect on oil consumption in the UAE. Moreover, a positive effect of FMD on NGC is found in the UAE. However, FMD has a negative effect on the NGC in Israel.
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Jóźwik, Bartosz, Antonina-Victoria Gavryshkiv, Phouphet Kyophilavong, and Lech Euzebiusz Gruszecki. "Revisiting the Environmental Kuznets Curve Hypothesis: A Case of Central Europe." Energies 14, no. 12 (June 9, 2021): 3415. http://dx.doi.org/10.3390/en14123415.
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The rapid economic growth observed in Central European countries in the last thirty years has been the result of profound political changes and economic liberalization. This growth is partly connected with reducing carbon dioxide (CO2) emissions. However, the problem of CO2 emissions seems to remain unresolved. The aim of this paper is to test whether the Environmental Kuznets Curve (EKC) hypothesis holds true for Central European countries in an annual sample data that covers 1995–2016 in most countries. We examine cointegration by applying the Autoregressive Distributed Lag bound testing. This is the first study examining the relationship between CO2 emissions and economic growth in individual Central European countries from a long-run perspective, which allows the results to be compared. We confirmed the cointegration, but our estimates confirmed the EKC hypothesis only in Poland. It should also be noted that in all nine countries, energy consumption leads to increased CO2 emissions. The long-run elasticity ranges between 1.5 in Bulgaria and 2.0 in Croatia. We observed exceptionally low long-run elasticity in Estonia (0.49). Our findings suggest that to solve the environmental degradation problem in Central Europe, it is necessary to individualize the policies implemented in the European Union.