Revisiting the environmental Kuznets curve (EKC) hypothesis in India: the effects of energy consumption and democracy

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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Environmental Kuznets Curve Hypothesis on CO2 Emissions: Evidence for China

Journal of Risk and Financial Management ◽

10.3390/jrfm14030093 ◽

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.

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Analyzing the Impact of Energy, Export Variety, and FDI on Environmental Degradation in the Context of Environmental Kuznets Curve Hypothesis: A Case Study of India

Energies ◽

10.3390/en12061076 ◽

2019 ◽

Vol 12 (6) ◽

pp. 1076 ◽

Cited By ~ 9

Author(s):

Tijjani Adamu ◽

Ihtisham Haq ◽

Muhammad Shafiq

Keyword(s):

Energy Consumption ◽

Environmental Degradation ◽

Carbon Emissions ◽

Environmental Kuznets Curve ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Long Run ◽

Export Variety ◽

Short Run ◽

The Impact

The economic size of the Indian economy and its status as one of the major global emitters of carbon emissions makes the country a good place to study the determinants of environmental degradation in India. The study aims at analyzing the impact of energy, export variety, and foreign direct investment (FDI) on environmental degradation in India in the context of environmental Kuznets curve (EKC) hypothesis. The long run relationship was found between variables of the study through a cointegration test, whereas long run estimates were obtained through cointegration and dynamic ordinary least squares (DOLS). Results of the study reveal that energy consumption, export variety, FDI, and income positively contributed to environmental degradation in India. Results also unveil that the EKC hypothesis does not exist in India. Causality analyses document unidirectional causality from income and FDI to environmental degradation, and bidirectional causality was witnessed between energy consumption and environmental degradation and between export variety and environmental degradation in the long run. The long run and the short run causality highlight that India has to forego the short run economic growth in order to improve its environmental quality and reduce global carbon emissions; however, it will not affect its long term economic development process.

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Environmental Kuznets curve (EKC): Empirical relationship between economic growth, energy consumption, and CO2 emissions: Evidence from 3 developed countries

Panoeconomicus ◽

10.2298/pan180503004b ◽

2020 ◽

pp. 4-4 ◽

Cited By ~ 4

Author(s):

Emrah Beşe ◽

Salih Kalayci

Keyword(s):

United Kingdom ◽

Energy Consumption ◽

Environmental Kuznets Curve ◽

Developed Countries ◽

Cointegration Test ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

The United Kingdom ◽

Johansen Cointegration Test

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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Revisiting the Environmental Kuznets Curve Hypothesis: A Case of Central Europe

Energies ◽

10.3390/en14123415 ◽

2021 ◽

Vol 14 (12) ◽

pp. 3415

Author(s):

Bartosz Jóźwik ◽

Antonina-Victoria Gavryshkiv ◽

Phouphet Kyophilavong ◽

Lech Euzebiusz Gruszecki

Keyword(s):

Economic Growth ◽

Co2 Emissions ◽

Central Europe ◽

Environmental Kuznets Curve ◽

European Countries ◽

Kuznets Curve ◽

The European Union ◽

Ekc Hypothesis ◽

Central European ◽

Long Run

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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Technology Innovation Based on Environmental Kuznets Curve Hypothesis

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.573-574.831 ◽

2012 ◽

Vol 573-574 ◽

pp. 831-835 ◽

Cited By ~ 2

Author(s):

Yu Wei He ◽

Jin Rong Jiang

Keyword(s):

Energy Consumption ◽

Environmental Kuznets Curve ◽

Technology Innovation ◽

Added Value ◽

Kuznets Curve ◽

Low Carbon ◽

Low Carbon Economy ◽

Environmental Kuznets Curve Hypothesis ◽

The Relationship ◽

Carbon Economy

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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Testing the Environmental Kuznets Curve Hypothesis for Turkey: The Role of Clean Energy Consumption and Ecological Footprint

10.21203/rs.3.rs-124967/v1 ◽

2020 ◽

Author(s):

Suleyman Yurtkuran

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Capita Income ◽

Environmental Kuznets Curve ◽

Ecological Footprint ◽

Clean Energy ◽

Kuznets Curve ◽

Per Capita ◽

Environmental Kuznets Curve Hypothesis

Abstract This study aims to investigate the dynamic relationship between income, clean energy consumption, exports, imports, urbanization and ecological footprint for Turkey from 1973 to 2015 using the environmental Kuznets curve hypothesis. The long-term coefficients derived from the ARDL approach demonstrate that import increase the ecological footprint, whereas urbanization and clean energy consumption do not have an impact on environmental pollution in the long-term. In addition, the 2001 dummy variable is negative and statistically significant. The crisis in 2001 slowed down the economic growth rate. This situation also caused reduction of environmental pollution. Moreover, the long run estimates indicate that the EKC hypothesis is valid in Turkey. However, the turning point of per capita income was calculated as $16,045 that outside of the analyzed period. As economic activities increase, human pressure on nature continues to increase. Consequently, the only factor that reduces the ecological footprint has been determined as exports. In contrast, economic growth and clean energy consumption cannot be used as a tool to reduce the ecological footprint. Turkey needs a higher level of per capita income than the threshold level to improve environmental quality.

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A New Insight of the Existence of the Environmental Kuznets Curve in Indonesia

E3S Web of Conferences ◽

10.1051/e3sconf/202020203023 ◽

2020 ◽

Vol 202 ◽

pp. 03023

Author(s):

Andryan Setyadharma ◽

Shanty Oktavilia ◽

Yayu Tika Atmadani ◽

Indah Fajarini Sri Wahyuningrum

Keyword(s):

Natural Resources ◽

Environmental Kuznets Curve ◽

Positive Impact ◽

The Body ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Economic Activities ◽

Distributed Lag ◽

Autoregressive Distributed Lag

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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Interrelationships Among Carbon Emission, Economic Growth, Energy Consumption and Foreign Direct Investment in Eurasian Countries

10.36880/c13.02519 ◽

2021 ◽

Author(s):

Özge Yüksel

Keyword(s):

Foreign Direct Investment ◽

Energy Consumption ◽

Unit Root ◽

Environmental Kuznets Curve ◽

Direct Investment ◽

Carbon Emission ◽

Carbon Dioxide Emission ◽

Kuznets Curve ◽

Environmental Kuznets Curve Hypothesis ◽

The Impact

The main aim of this study is to empirically investigate the impact of energy consumption and foreign direct investments on carbon emissions and the validity of the Environmental Kuznets Curve hypothesis in Eurasian countries over the period of 1993-2013. In this context, firstly cross-section dependency and homogeneity tests were applied for the the panel. The existence of unit root was investigated by one of the second-generation unit root test CIPS. The cointegration relationship between the variables was investigated with the Gengenbach, Urbain ve Westerlund panel cointegration test and finally, the causality relationship was examined using the Dumitrescu and Hurlin causality test. Empirical results indicate that there is no cointegraion between carbon dioxide emission representing environmental pollution and other variables. Also, it was concluded that the inverted U-shaped Environmental Kuznets curve hypothesis is not valid. There is a bidirectional causality between carbon emission and GDP, the square of GDP, energy consumption and foreign direct investment.

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