Recent empirical research has examined the relationship between certain
indicators of environmental degradation and income, concluding that in some
cases an inverted U-shaped relationship, which has been called an
environmental Kuznets curve (EKC), exists between these variables. The source
of growth explanation is important for two reasons. First, it demonstrates
how the pollution consequences of growth depend on the source of growth.
Therefore, the analogy drawn by some in the environmental community between
the damaging effects of economic development and those of liberalized trade
is, at best, incomplete. Second, the source of growth explanation
demonstrates that a strong policy response to income gains is not necessary
for pollution to fall with growth. The aim of this paper investigates the
role of differences source of growth in environmental quality of Iran. The
results show the two growth resources in Iran cause, in the early stages, CO2
emission decreases until turning point but beyond this level of income per
capita, economic growth leads to environmental degradation. I find a U
relationship between environmental degradation (CO2 emission) and economic
growth in Iran.
Estimation of Environmental Kuznets Curve for CO2 emission: Role of renewable energy generation in India