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1
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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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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STERN, DAVID I. "Progress on the environmental Kuznets curve?" Environment and Development Economics 3, no. 2 (May 1998): 173–96. http://dx.doi.org/10.1017/s1355770x98000102.
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The environmental Kuznets curve (EKC) hypothesis proposes that there is an inverted U-shape relation between environmental degradation and income per capita. This has been taken to imply that economic growth will eventually redress the environmental impacts of the early stages of economic development. The literature on this issue has developed rapidly over the last few years. This paper examines whether progress has been made on both understanding the EKC phenomenon and on addressing the various criticisms raised against some of the empirical studies and their interpretation in the policy literature. Though basic EKC studies continue to be carried out, recent work has focused on the effect of a variety of conditioning variables on the environmental impact-GDP relationship. Some attempts have also been made to examine the history of the relationship in individual countries. The econometric techniques used have improved. However, empirical decompositions of the EKC into proximate or underlying causes are either limited in scope or non-systematic, and explicit testing of the various theoretical models has not yet been attempted.
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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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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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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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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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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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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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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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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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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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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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Ben Zaied, Younes, Nidhaleddine Ben Cheikh, and Pascal Nguyen. "Long-run analysis of Environmental Kuznets Curve in the Middle East and North Africa." Environmental Economics 8, no. 4 (December 7, 2017): 72–79. http://dx.doi.org/10.21511/ee.08(4).2017.09.
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The main originality of this paper is to empirically investigate the long-run relationship between carbone dioxide (CO2) emissions, energy use and real GDP per capita in the Middle East and North Africa (MENA) during the last three decades. Using panel cointegration tests (Westerlund, (2007) and DOLS estimation method, we validate the Environmental Kuznets Curve (EKC) hypothesis in the long run for the MENA region countries. Therefore, we conclude that oil producer countries have adopted several policy decisions in favor of CO2 emissions reduction. The estimated turning point of the EKC confirms our intuitions that only oil producer countries achieve CO2 emissions reduction goal.
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Arnaut, Javier, and Johanna Lidman. "Environmental Sustainability and Economic Growth in Greenland: Testing the Environmental Kuznets Curve." Sustainability 13, no. 3 (January 25, 2021): 1228. http://dx.doi.org/10.3390/su13031228.
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The environmental Kuznets curve (EKC) hypothesis assumes there is an inverted U-shape relationship between pollution and income per capita, implying an improvement in environmental quality when a growing economy reaches a high level of economic development. This study evaluated empirically the existence of the environmental Kuznets curve in Greenland for the period 1970–2018. Using an autoregressive distributed lag (ARDL) approach, the results show evidence of a U-shaped EKC in Greenland instead of the hypothesized inverted U-shape. The findings indicate that Greenland had initially experienced a decoupling transition during an early development stage associated with structural conditions of a small subsistence economy. However, once the country began to expand its industry, the trend began to reverse, creating a positive and significant relationship between CO2 emissions and GDP per capita that is potentially detrimental to the Arctic natural environment.
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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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Zhang, Jihuan. "Environmental Kuznets Curve Hypothesis on CO2 Emissions: Evidence for China." Journal of Risk and Financial Management 14, no. 3 (February 26, 2021): 93. http://dx.doi.org/10.3390/jrfm14030093.
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China is the largest CO2 emitter in the world, and it shared 28% of the global CO2 emissions in 2017. According to the Paris Agreement, it is estimated that China’s CO2 emissions will reach its peak by 2030. However, whether or not the CO2 emissions in China will rise again from its peak is still unknown. If the emission level continues to increase, the Chinese policymakers might have to introduce a severe CO2 reduction policy. The aim of this paper is to conduct an empirical analysis on the long-standing relationship between CO2 emissions and income while controlling energy consumption, trade openness, and urbanization. The autoregressive distributed lag (ARDL) model and the bounds test were adopted in evaluating the validity of the Environmental Kuznets Curve (EKC) hypothesis. The quantile regression was also used as an inference approach. The study reveals two major findings: first, instead of the conventional U-shaped EKC hypothesis, there is the N-shaped relationship between CO2 emissions and real gross domestic product (GDP) per capita in the long run. Second, a positive effect of energy consumption and a negative effect of urbanization on CO2 emissions, in the long run, are also estimated. Quantitatively, if energy consumption rises by 1%, then CO2 emissions will increase by 0.9% in the long run. Therefore, the findings suggest that a breakthrough, in terms of policymaking and energy innovation under China’s specific socioeconomic and political circumstances, are required for future decades.
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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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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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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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Mitić, Petar, Milena Kresoja, and Jelena Minović. "A Literature Survey of the Environmental Kuznets Curve." Economic Analysis 52, no. 1 (June 24, 2019): 109–27. http://dx.doi.org/10.28934/ea.19.52.12.pp109-127.
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Since the 1970s, the issue of environmental degradation has received considerable attention. Environmental Kuznets curve is one of the most well-known hypotheses that explains the relationship between economic growth and environmental pollution. It represents an important model that enables policymakers to deliver quality information-based decisions. In this paper we provide the theoretical framework of the Environmental Kuznets curve and examine existing literature on the EKC hypothesis. The systematic literary survey includes studies conducted for single countries as well as for group of countries. The most of the studies were testing empirically existence of inverted U-shaped relationship between economic growth and carbon dioxide emissions. Due to the chosen time period, set of independent variables and methodological framework, the results are inconclusive in nature, which is consistent with previous literature surveys on the same topic.
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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.
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BARBIER, EDWARD B. "Introduction to the environmental Kuznets curve special issue." Environment and Development Economics 2, no. 4 (November 1997): 357–67. http://dx.doi.org/10.1017/s1355770x97000181.
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This special issue is concerned with environmental Kuznets curves (EKC) - the hypothesis that there is an ‘inverted-U’ relationship between various indicators of environmental degradation and levels of per capita income. Explanations as to why environmental degradation should first increase then decline with income have focused on a number of underlying relationships, including:the effects of structural economic change on the use of the environment for resource inputs and to assimilate waste;the link between the demand for environmental quality and income;types of environmental degradation and ecological processes.
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Li, Jin Ying, Ya Jun Wei, and Peng Cheng. "Research on the Relationship between Economic Development and Environmental Quality Based on Environmental Kuznets Curve." Advanced Materials Research 281 (July 2011): 69–73. http://dx.doi.org/10.4028/www.scientific.net/amr.281.69.
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With economy growth and industrialization, resources and environmental issues become seriously increasingly. People argue about that economy growth is whether the reason for environmental issues or the dynamic of resolving environmental issues. This argue give rise to the research upsurge of the relation of environment and economy. Environmental Kuznets Curve (EKC) hypothesis is the most typical among those. EKC is applied to analyze the relationship between economic growth and the changes of environment quality, it aims to provide a scientific reference for the decision-making policies of relevant department.
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Soberon, Alexandra, and Irene D’Hers. "The Environmental Kuznets Curve: A Semiparametric Approach with Cross-Sectional Dependence." Journal of Risk and Financial Management 13, no. 11 (November 23, 2020): 292. http://dx.doi.org/10.3390/jrfm13110292.
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This paper proposes a new approach to examine the relationship between CO2 emissions and economic developing. In particular, we propose to test the Environmental Kuznets Curve (EKC) hypothesis for a panel of 24 OECD countries and 32 non-OECD countries by developing a more flexible estimation technique which enables to account for functional form misspecification, cross-sectional dependence, and heterogeneous relationships among variables, simultaneously. We propose a new nonparametric estimator that extends the well-known Common Correlated Effect (CCE) approach from a fully parametric framework to a semiparametric panel data model. Our results corroborates that the nature and validity of the income–pollution relationship based on the EKC hypothesis depends on the model assumptions about the functional form specification. For all the countries analyzed, the proposed semiparametric estimator leads to non-monotonically increasing or decreasing relationships for CO2 emissions, depending on the level of economic development of the country.
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Tachega, Mark Awe, Xilong Yao, Yang Liu, Dulal Ahmed, Wilhermina Ackaah, Mohamed Gabir, and Justice Gyimah. "Income Heterogeneity and the Environmental Kuznets Curve Turning Points: Evidence from Africa." Sustainability 13, no. 10 (May 18, 2021): 5634. http://dx.doi.org/10.3390/su13105634.
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The concept of environmental sustainability aims to achieve economic development while achieving a sustainable environment. The inverted U-shape relationship between economic growth and environmental quality, also called Environmental Kuznets Curve (EKC), describes the correlation between economic growth and carbon emissions. This study assesses the role of agriculture and energy-related variables while evaluating the EKC threshold in 54 African economies, and income groups, according to World Bank categorization, including low income, lower-middle, upper-middle, and high-income in Africa. With 1990–2015 panel data, the results are estimated using panel cointegration, Fully Modified Ordinary Least Square (FMOLS), and granger causality tests. The results are: (1) The study validated the EKC hypothesis in the low-income, lower-, and upper-middle-income economies. However, there is no evidence of EKC in the full African and high-income panels. Furthermore, the turning points of EKC in the income group are meagerly low, showing that Africa could be turning on EKC at lower income levels. (2) The correlation between agriculture with CO2 is found positive in the high-income economy. However, agriculture has a mitigation effect on emissions in the lower-middle-income and low-income economies, and the full sample. Also, renewable energy is negatively correlated with emissions in Africa and the high-income economy. In contrast, non-renewable energy exerts a positive effect on emissions in all income groups except the low-income economies.
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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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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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Chen, Jingling, Tao Eric Hu, and Rob van Tulder. "Is the Environmental Kuznets Curve Still Valid: A Perspective of Wicked Problems." Sustainability 11, no. 17 (August 30, 2019): 4747. http://dx.doi.org/10.3390/su11174747.
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Historically, academia has paid much attention to environmental Kuznets curve (EKC) associated hypotheses, and the EKC per se has triggered conflicting reactions since first posited. Yet, all controversies seem not to have any base framework to address further pollution-related strategies. Built upon an extensive critical review of the extant EKC literature, this paper attempts to address the gap by introducing the theory of wicked problems that can be used to reframe the extant EKC research. Integrating and synthesizing the theories and empirical findings of the extant EKC literature, this paper develops a conceptual framework (a research agenda), and suggests that, given humans’ bound rationality and societal uncertainties, the EKC pattern may not be valid for the situations of more wicked pollution. Mainly focusing on this type of pollution, the paper contributes to the EKC study in proposing a set of causal relationships built upon the attitudes of societal sectors. The paper points to the necessity of distinguishing the less wicked pollution situations from the more wicked ones that require different practical and academic strategies to deal with. The former can be addressed along with economic growth, and the latter requires proactive attitudes, proactive leadership, and strong organization of societal sectors. In doing so, we hope to advance the conversation surrounding EKC studies and the abatement practice adaption. Contributions of this study and future research avenues for empirical verifications of the theory are then discussed.
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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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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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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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Mosconi, Enrico Maria, Andrea Colantoni, Filippo Gambella, Eva Cudlinová, Luca Salvati, and Jesús Rodrigo-Comino. "Revisiting the Environmental Kuznets Curve: The Spatial Interaction between Economy and Territory." Economies 8, no. 3 (September 14, 2020): 74. http://dx.doi.org/10.3390/economies8030074.
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A complex interplay of socio-ecological drivers of change exists at the different spatiotemporal scales affecting environmental degradation. This is a key issue worldwide and needs to be understood to develop efficient management solutions. One of the most applied theories in the regional analysis is the U-shaped relationship between environmental degradation and the level of income in a given economic system or Environmental Kuznets Curve (EKC). Specifically, the EKC hypothesis underlines the (potentially positive) role of formal responses to environmental degradation grounded on government policies that are usually more ambitious in wealthier economic systems. However, there is a lack of knowledge on the role of space in EKC, arguing that spatial variability in the environment–income relationship may indicate additional targets for integrated socio–environmental policies. We hypothesize that a spatially differentiated response to environmental degradation could better adapt to differentiated local contexts. Therefore, to achieve this goal, we present a multi-scale investigation of degradation processes at the local level, providing a refined knowledge of the environment–economy linkages considering more traditional, cross-country and cross-region exercises. Our results demonstrated that—together with temporal, sectoral, and institutional aspects—space and, consequently, the related analysis’ spatial scales, are significant dimensions in ecological economics, whose investigation requires improvements in data collection and dedicated statistical approaches.
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Tsiantikoudis, Zafeiriou, Kyriakopoulos, and Arabatzis. "Revising the Environmental Kuznets Curve for Deforestation: An Empirical Study for Bulgaria." Sustainability 11, no. 16 (August 12, 2019): 4364. http://dx.doi.org/10.3390/su11164364.
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The evolution of human societies along with efforts to enhance economic welfare may well lead to the deterioration of the environment. Deforestation is a usual process throughout evolution that poses pressing and potentially irreversible environmental risks, despite the ecological and modernization processes that aim to limit those risks. The economic growth–environmental degradation relationship—namely, the environmental Kuznets curve (EKC) hypothesis—is studied in alignment with the autoregressive distributed lag (ARDL) approach. The novelty of the study is attributed to the use of the carbon emissions equivalent derived by deforestation as an index for environmental degradation in Bulgaria as a new entrant into the European Union (EU). In addition, we use the gross domestic product (GDP) per capita as a proxy for income, being determined as an independent variable. Research findings cannot validate the inverted U-shape of the EKC hypothesis; instead, an inverted N pattern is confirmed. The implementation of appropriate policies aiming at the protection of the environment through the diversification of economic activities is related to the use of forest land and other resources, or related sectors (agroforestry, ecotourism activities, and scientific research), rather than only the direct utilization of forested areas; the limitation of afforestation processes and their negative impacts on citizens’ welfare are also addressed.
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Sterpu, Mihaela, Georgeta Soava, and Anca Mehedintu. "Impact of Economic Growth and Energy Consumption on Greenhouse Gas Emissions: Testing Environmental Curves Hypotheses on EU Countries." Sustainability 10, no. 9 (September 18, 2018): 3327. http://dx.doi.org/10.3390/su10093327.
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This study analyses the relationship between per capita greenhouse gas (GHG) emissions, gross domestic product, gross inland energy consumption, and renewable energy consumption for a panel of 28 countries of European Union in the period 1990–2016. Two theoretical models, a quadratic and a cubic one, are used to estimate the shape of the environmental curve and to test the Kuznets hypothesis. The panel cointegration approach proved the existence of long-run equilibrium relations among the four macroeconomic indicators. Empirical estimations, using panel data techniques, as well as heterogeneous regression for each individual country in the panel, show non-conclusive evidence for the environmental Kuznets curve (EKC) hypothesis. The least square estimates, with the variables in log per capita form, reveal that the inverted U-shaped EKC hypothesis is verified for the panel and for 17 of the 28 EU countries. Estimates of the cubic model show that the environmental curve has an inverted N-shaped form. These results do not hold when the values are in non-logarithmic form. In addition, the estimations for all models show that an increase of gross energy consumption leads to an increase of GHGs, while an increase of renewable energy consumption leads to a reduction in GHG emissions.
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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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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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Halkos, George E. "Environmental Kuznets Curve for sulfur: evidence using GMM estimation and random coefficient panel data models." Environment and Development Economics 8, no. 4 (September 17, 2003): 581–601. http://dx.doi.org/10.1017/s1355770x0300317.
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The purpose of this study is to test empirically the hypothesis of the inverted U-shaped relationship between environmental damage from sulfur emissions and economic growth as expressed by GDP. Using a large database of panel data consisting of 73 OECD and non-OECD countries for 31 years (1960–1990) we apply for the first time random coefficients and Arellano-Bond Generalized Method of Moments (A–B GMM) econometric methods. Our findings indicate that the EKC hypothesis is not rejected in the case of the A–B GMM. On the other hand there is no support for an EKC in the case of using a random coefficients model. Our turning points range from $2805–$6230/c. These results are completely different compared to the results derived using the same database and fixed and random effects models.
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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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Zhang, Jie, Majed Alharthi, Qaiser Abbas, Weiqing Li, Muhammad Mohsin, Khan Jamal, and Farhad Taghizadeh-Hesary. "Reassessing the Environmental Kuznets Curve in Relation to Energy Efficiency and Economic Growth." Sustainability 12, no. 20 (October 10, 2020): 8346. http://dx.doi.org/10.3390/su12208346.
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Energy consumption and its efficiency are significant factors for economic growth and environmental stress. This study postulates the occurrence of the Environmental Kuznets Curve hypothesis (EKC) by using the Autoregressive-Distributed Lag (ARDL) model. Furthermore, a data envelopment analysis (DEA) model is used to measure energy efficiency, energy intensity, and environment to view the trajectory of EKC for the underline economies. For this purpose, a panel dataset from 1990–2013 of 15 developing countries is analyzed to verify the objectives mentioned above. The results of the panel ARDL support EKC’s theory for underline economies, as GDP positively impacts carbon emissions, while the square of GDP is negatively related. The DEA-based results found relatively low environmental conditions in these emerging economies due to high energy intensity and low energy efficiency. This outcome suggests that renewable energy sources must be treated as an essential factor for achieving sustainable economic goals without environmental degradation.
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Ouédraogo, Mohamed, Daiyan Peng, Xi Chen, Shujahat Haider Hashmi, and Mamoudou Ibrahima Sall. "Dynamic Effect of Oil Resources on Environmental Quality: Testing the Environmental Kuznets Curve Hypothesis for Selected African Countries." Sustainability 13, no. 7 (March 25, 2021): 3649. http://dx.doi.org/10.3390/su13073649.
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This paper examines the environmental Kuznets curve (EKC) theory, augmenting the role of oil resources and energy consumption in carbon dioxide (CO2) emissions using the annual data of 11 African oil-producing countries from 1980 to 2014. We apply advanced panel cointegration and panel autoregressive distributive lag (ARDL) techniques coupled with Granger non-causality analysis to account for cross-sectional dependence and heterogeneity. The results of the augmented mean group (AMG) reveal that oil resources abundance degrades the environmental quality in Angola while abating CO2 emissions in Algeria, Gabon, Morocco, and Nigeria. Contrarily, energy consumption escalates pollution in the Congo Democratic Republic (COD), Côte d’Ivoire (CIV), Gabon, Morocco, and Tunisia. Our findings support the EKC hypothesis only in Cameroon, CIV, and Nigeria while exhibiting a U-shaped curve in Algeria and Morocco. Causality analysis unveils that oil resources Granger cause energy consumption, suggesting the balance between renewable and non-renewable energy sources. The current study has important policy implications for promoting green technology, economic diversification, service sector, and green investments.
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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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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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Al rosyid, Ali Hasyim, Irham Irham, and Jangkung Handoyo Mulyo. "Hypothesis Testing on Environmental Kuznets Curve of Agricultural Sector in Java Island: Panel Data Analysis." Agro Ekonomi 28, no. 1 (June 28, 2017): 95. http://dx.doi.org/10.22146/jae.25703.
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One obstacle in the improvement of community welfare in the agricultural sector, especially in Java, is the environmental externality which constantly exists in every economic activity. The objective of this research was to estimate greenhouse gas emission coming from agricultural sector in Java and identify whether farmers in Java had allocated environmental conservation costs as the impact of greenhouse gas emission from agricultural activities in Java. The inventory method of greenhouse gas emission from agricultural sector is based on inventory guidelines published by IPCC (Intergovernmental Panel on Climate Change) in 2006. As for the analysis to determine the relationship between greenhouse gas emission and GRDP of agricultural subsector per agricultural labor, The Environmental Kuznets Curve (EKC) was employed, alongside greenhouse gas emission indicators representing environmental degradation and GRDP of agricultural subsector per agricultural worker representing of per capita income of agricultural. Overall, greenhouse gas emissions, both CH4 methane emissions and carbon dioxide emission (CO2) - produced from rice cultivation, fertilizer application, livestock enteric fermentation and poultry manure - are gradually increasing. And the relationship between greenhouse gas emission and GRDP per worker has inverted-U shape; and it is in line with EKC hypothesis. Thereby, the role of the entire community elements and government support in implementing mitigation technology and agricultural adaptation is needed to cope with impacts of greenhouse gas emission, such as climate change.
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Alhannom, Essa, and Ghaleb Mushabab. "Economic Growth And Carbon Dioxide Emissions: The Environmental Kuznets Curve Hypothesis In Yemen." Iraqi Journal For Economic Sciences 2021, no. 68 (March 13, 2021): 42–58. http://dx.doi.org/10.31272/ijes2021.68.3.
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Abstract This study investigates the validity of the Environmental Kuznets Curve hypothesis in Yemen and the causal relationships between Carbon dioxide emissions, per capita income, energy consumption, trade openness, and industrial share to GDP. ARDL bounds testing approach to cointegration, Error Correction Model, and Toda-Yamamoto procedure to Granger causality techniques were employed on annual data covering the period from 1990 to 2010. long run relationship between CO2 emissions and its determinants with significant effects for per capita GDP and trade openness, whereas, energy consumption and trade openness appear to be important determinants of CO2 emissions in the short run. Besides, based on Narayan and Narayan (2010) approach, it is found that the EKC hypothesis does not hold in Yemen and therefore the effect of per capita income on CO2 emissions is monotonically increasing. Toda-Yamamoto causality test proved the existence of bidirectional causal relationships between economic growth and CO2 emissions, between energy consumption and economic growth, and between trade openness and energy consumption
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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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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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Mahmood, Haider, Maham Furqan, and Omar Bagais. "Environmental Accounting of Financial Development and Foreign Investment: Spatial Analyses of East Asia." Sustainability 11, no. 1 (December 20, 2018): 13. http://dx.doi.org/10.3390/su11010013.
Full textAbstract:
This paper aspires to examine the environmental effects of financial market development (FMD), foreign direct investment (FDI), and trade openness on the CO2 emissions per capita along with the environmental Kuznets curve (EKC) hypothesis in six East Asian countries from 1991–2014. For this purpose, spatial econometrics is applied to consider the spillover effects from neighboring countries. The results of the study corroborate the spillover effects from neighboring countries’ CO2 emissions per capita, FMD, FDI, and trade openness, and the EKC hypothesis is proven true in this region. Local FDI inflows, trade openness, and energy intensity are found to be responsible for local environmental degradation. Local FMD has an insignificant environmental effect, but neighboring countries’ FMD has contributed to the local CO2 emissions per capita. Further, positive (negative) environmental spillover effects are found from neighboring countries’ FDI (trade openness).