scholarly journals Is there an environmental Kuznets inverted-U shaped curve?

2018 ◽  
Vol 65 (1) ◽  
pp. 79-94 ◽  
Author(s):  
Cüneyt Kiliç ◽  
Feyza Balan
Keyword(s):  
Energy Consumption ◽  
Co2 Emissions ◽  
Financial Development ◽  
Trade Openness ◽  
Institutional Quality ◽  
Ordinary Least Squares ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Cubic Polynomial ◽  
Carbon Dioxide Co2

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.

scholarly journals Environmental Kuznets Curve Hypothesis on CO2 Emissions: Evidence for China

2021 ◽  
Vol 14 (3) ◽  
pp. 93
Author(s):  
Jihuan Zhang
Keyword(s):  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Trade Openness ◽  
Co2 Reduction ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Distributed Lag ◽  
Long Run ◽  
Negative Effect

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.

scholarly journals Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Energies ◽  
2020 ◽  
Vol 13 (3) ◽  
pp. 526 ◽  
Author(s):  
Shujahat Haider Hashmi ◽  
Fan Hongzhong ◽  
Zeeshan Fareed ◽  
Roksana Bannya
Keyword(s):  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Quality ◽  
Service Sector ◽  
Trade Openness ◽  
Income Level ◽  
Ordinary Least Squares ◽  
Quadratic Term ◽  
Ekc Hypothesis

Our pioneer study is aimed at investigating the role of the service sector in affecting sustainable environment in Pakistan. Using time series data over 1971–2014 and applying an autoregressive distributive lag (ARDL) model with structural break analysis, we establish a long-term equilibrium relationship of carbon dioxide (CO2) emissions with energy consumption, income level, services and trade openness. Our findings support a service-induced environmental Kuznets curve (EKC) hypothesis in Pakistan. The income level sharply raises environmental degradation at the early stage; however, after reaching a certain threshold, it improves environmental quality but at a lower rate. There exists an inverted U-shaped nexus between services and CO2 emissions, which implies that the service sector is less energy-intensive in terms of mitigating pollution in Pakistan. Moreover, the energy consumption has an inverted U-shaped effect on carbon emissions, which implies energy efficiencies and adoption of renewable energy has reduced pollution in the long run. The trade openness increases CO2 emissions in both the short term and long term. The quadratic term of income level has a negatively inelastic impact on CO2 emissions, which implies a very slow rate of improvement in environmental quality. On the other hand, the quadratic term of services shows a highly elastic impact on pollution, which induces the EKC hypothesis. Our robustness checks such as fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (OLS), and Toda and Yamamoto (TY) causality tests further confirm the existence of the service-induced EKC hypothesis in Pakistan. Moreover, there exists a unidirectional causality from energy consumption to CO2 emissions, a bidirectional causal relationship between economic growth and CO2 emissions, and a unidirectional causal linkage between services and CO2 emissions. Lastly, we discuss certain policy implications for designing appropriate environmental and energy policies to mitigate the pollution in Pakistan.

scholarly journals Carbon Emissions and Income Trajectory in Eight Heterogeneous Countries: The Role of Trade Openness, Energy Consumption and Population Dynamics

2013 ◽  
Vol 9 (2) ◽  
Author(s):  
OLUWOLE OWOYE ◽  
OLUGBENGA A. ONAFOWORA
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Trade Openness ◽  
Policy Decision ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Sample Mean ◽  
Long Run ◽  
Wide Range

This paper examines the long-run and dynamic temporal relationships between economic growth, energy consumption, population density, trade openness, and carbon dioxide    (CO2) emissions in Brazil, China, Egypt, Japan, Mexico, Nigeria, South Korea, and South Africa based on the environment Kuznets curve (EKC) hypothesis. We employ the ARDL Bounds test to cointegration and CUSUM and CUSUMSQ tests to ensure long-run cointegration and parameter stability.  The estimated results show that the inverted U-shaped EKC hypothesis holds in Japan and South Korea.  In the other six countries, the long-run relationship between economic growth and CO2 emissions follows an N-shaped trajectory and the estimated turning points are much higher than the sample mean. In addition, the results indicate that energy consumption Granger-causes both CO2 emissions and economic growth in all the countries.  An important implication of our findings is that it would be ill-advised for the policy decision makers to adopt the EKC postulate as the conceptual basis for policies favoring economic growth unconditionally. A wide range of policy initiatives that would induce increased demand for better environment quality and its sustainability should be explored in tandem with measures to spur economic growth.

scholarly journals The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 174
Author(s):  
Khalid Eltayeb Elfaki ◽  
Rossanto Dwi Handoyo ◽  
Kabiru Hannafi Ibrahim
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Least Squares ◽  
Financial Development ◽  
Correction Term ◽  
Trade Openness ◽  
Ordinary Least Squares ◽  
Distributed Lag ◽  
Long Run ◽  
The Impact

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over the period 1984–2018. To do so, the study employed the autoregressive distributed lag (ARDL) model to estimate the long-run and short-run nexus among the variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic least squares (DOLS), and canonical cointegrating regression (CCR) were used for a more robust examination of the empirical findings. The result of cointegration confirms the presence of cointegration among the variables. Findings from the ARDL indicate that industrialization, energy consumption, and financial development (measured by domestic credit) positively influence economic growth in the long run. However, financial development (measured by money supply) and trade openness demonstrate a negative effect on economic growth. The positive nexus among industrialization, financial development, energy consumption, and economic growth explains that these variables were stimulating growth in Indonesia. The error correction term indicates a 68% annual adjustment from any deviation in the previous period’s long-run equilibrium economic growth. These findings provide a strong testimony that industrialization and financial development are key to sustained long-run economic growth in Indonesia.

scholarly journals Energy, Emissions and the Economy: Empirical Analysis from Pakistan

2014 ◽  
Vol 53 (4II) ◽  
pp. 383-401 ◽  
Author(s):  
Muhammad Tariq Mahmood ◽  
Sadaf Shahab
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Fossil Fuels ◽  
Kuznets Curve ◽  
Bounds Testing ◽  
Long Run ◽  
Negative Impacts ◽  
Energy Emissions ◽  
Carbon Dioxide Co2

It is now an established fact that the most important environmental problem of our era is global warming.1 The rising quantity of worldwide carbon dioxide (CO2) emissions seems to be escalating this problem. As the emissions generally result from consumption of fossil fuels, decreasing energy spending seems to be the direct way of handling the emissions problem. However, because of the possible negative impacts on economic growth, cutting the energy utilisation is likely to be the “less preferred road”. Moreover, if the Environmental Kuznets Curve (EKC) hypothesis applies to the emissions and income link, economic growth by itself may become a solution to the problem of environmental degradation [Rothman and de Bruyn (1998)]. Coondoo and Dinda (2002), however, argue that both developing and developed economies must sacrifice economic growth. Still, countries may opt for different policies to fight global environmental problems, mainly depending on the type of relationship between CO2 emissions, income, and energy consumption over the long run [Soytas and Sari (2006)]. Hence, the emissions-energy-income nexus needs to be studied carefully and in detail for every economy, but more so for the developing countries. In this paper, we investigate the relationship between energy consumption, CO2 emissions and the economy in Pakistan from a long run perspective, in a multivariate framework controlling for gross fixed capital, labour and exports by employing ARDL bounds testing approach.

scholarly journals Do Aging and Low Fertility Reduce Carbon Emissions in Korea? Evidence from IPAT Augmented EKC Analysis

2020 ◽  
Vol 17 (8) ◽  
pp. 2972 ◽  
Author(s):  
Jaehyeok Kim ◽  
Hyungwoo Lim ◽  
Ha-Hyun Jo
Keyword(s):  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Population Aging ◽  
The Elderly ◽  
Ordinary Least Squares ◽  
Low Fertility ◽  
Kuznets Curve ◽  
Long Run ◽  
Carbon Dioxide Co2 ◽  
Robustness Check

The purpose of this article is to empirically find the Environmental Kuznets Curve (EKC) relationship between income and carbon dioxide (CO2) emissions and to analyze the influence of population aging on such emissions. We utilize Korean regional panel data of 16 provinces during the period from 1998 to 2016. To account for the nonstationary time series in the panel, we employ a fully modified ordinary least squares (FMOLS) and estimate long-run elasticity. From the empirical results, we can find the nonlinear relationship between income and CO2 emissions. Additionally, we verify the fact that population aging reduces CO2 emissions. A 1% increase in the proportion of the elderly results in a 0.4% decrease in CO2 emissions. On the other hand, the younger population increases CO2 emissions. These results were in line with those of additional analysis on residential and transportation CO2 emissions, for the robustness check.

scholarly journals Environmental Accounting of Financial Development and Foreign Investment: Spatial Analyses of East Asia

2018 ◽  
Vol 11 (1) ◽  
pp. 13 ◽  
Author(s):  
Haider Mahmood ◽  
Maham Furqan ◽  
Omar Bagais
Keyword(s):  
Co2 Emissions ◽  
Spatial Econometrics ◽  
Trade Openness ◽  
Spillover Effects ◽  
Environmental Accounting ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Fdi Inflows ◽  
Per Capita ◽  
Financial Market Development

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).

scholarly journals ENVIRONMENTAL KUZNETS CURVE HYPOTHESIS IN SELECTED EU COUNTRIES: KYOTO EFFECT

2019 ◽  
Vol 2 (2) ◽  
pp. 134-139
Author(s):  
​Cuma Bozkurt ◽  
İlyas Okumuş
Keyword(s):  
Energy Consumption ◽  
Environmental Pollution ◽  
Co2 Emissions ◽  
Trade Openness ◽  
Gdp Growth ◽  
Ekc Hypothesis ◽  
Eu Countries ◽  
Dummy Variable ◽  
Real Gdp ◽  
Per Capita

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.

scholarly journals An Evaluation of the Tourism-Induced Environmental Kuznets Curve (T-EKC) Hypothesis: Evidence from G7 Countries

2020 ◽  
Vol 12 (21) ◽  
pp. 9150 ◽  
Author(s):  
Cem Ișik ◽  
Munir Ahmad ◽  
Uğur Korkut Pata ◽  
Serdar Ongan ◽  
Magdalena Radulescu ◽  
...  
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Renewable Energy Consumption ◽  
G7 Countries ◽  
Group Of Seven ◽  
The Uk

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.

scholarly journals FINANCIAL DEVELOPMENT, INCOME, TRADE, AND URBANIZATION ON CO2 EMISSIONS: NEW EVIDENCE FROM KYOTO ANNEX COUNTRIES

2018 ◽  
Vol 9 (3) ◽  
pp. 17 ◽  
Author(s):  
Muhammad Rizwan Nazir ◽  
Muhammad Imran Nazir ◽  
Shujahat Haider Hashmi ◽  
Zeeshan Fareed
Keyword(s):  
Co2 Emissions ◽  
Financial Development ◽  
Environmental Degradation ◽  
Trade Openness ◽  
Negative Influence ◽  
Financial Reforms ◽  
Long Run ◽  
Short Run ◽  
Carbon Dioxide Co2 ◽  
The Impact

This study attempts to empirically investigate the impact of financial development, income, trade openness, and urbanization on carbon dioxide (CO2) emissions for the 21 Kyoto Annex countries using a balance panel data and GMM system over the period of 1970-2016. The results show a positive relationship between income and CO2 emissions in long-run. All models support the EKC hypothesis which assumes an inverted U-shaped relationship among income and environmental degradation. Financial development has a long-run negative influence on CO2 emissions, indicating that financial development reduces the environmental degradation. This means that financial development can be used as an implement to keep the degradation environmental clean by presenting financial reforms. The urbanization declines the CO2 emissions; however, it is essential for the policymakers and urban planners in these countries to control the rapid increase in urbanization. The panel causality confirms that bi-directional causal relationship between financial development, CO2 emissions, income, trade openness, and Urbanization in short-run.

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