An integrated specification for the nexus of water pollution and economic growth in China: Panel cointegration, long-run causality and environmental Kuznets curve

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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The Trade-Off Between Tourism and Pollution for Japanese Economic Growth

Tourism ◽

10.37741/t.69.3.4 ◽

2021 ◽

Vol 69 (3) ◽

pp. 381-394

Author(s):

Giovanni Bella ◽

Carla Massidda

Keyword(s):

Economic Growth ◽

Environmental Kuznets Curve ◽

Kuznets Curve ◽

Correction Model ◽

Trade Off ◽

Vector Error Correction ◽

Vector Error ◽

Long Run ◽

Polluting Emissions ◽

The Relationship

This paper proposes a vector error correction model to investigate the relationship between polluting emissions and GDP levels in Japan, in the period 1970-2014, and tests the validity of the Environmental Kuznets Curve (EKC) hypothesis driven by tourist arrivals. Our results validate the existence of two different causality channels among the selected variables. In particular, we find that a trade-off might exist between increasing the number of tourists, which drives economic growth, and the pattern of a sustainable development, due to the increase of polluting emissions. The analysis allows us to propose appropriate policy strategies to promote a robust and sustainable long run economic growth.

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Environmental Kuznets Curve for Sustainable Development

International Journal of Innovative Technology and Exploring Engineering - Special Issue ◽

10.35940/ijitee.l1185.10812s19 ◽

2019 ◽

Vol 8 (12S) ◽

pp. 813-818

Keyword(s):

Economic Growth ◽

Purchasing Power Parity ◽

Environmental Kuznets Curve ◽

Theoretical Framework ◽

Kuznets Curve ◽

Power Parity ◽

China And India ◽

Long Run ◽

Energy Needs ◽

Installed Capacity

Economies today are relying on coal and other finite sources for their energy needs which has not only resulted in exhaustion of finite resources but also has adversely affected the environment as burning of coal alone is responsible for emission of Green House Gases . As the economy grows the consumption of power also rises and in order to keep pace with the growing demand for power, economies are forced to increase the installed capacity. But in economies like US, China and India dependence on coal has been in rise for last few decades. Simon Kuznet rightly brought this to our notice and established the relationship between carbon emission and GDP which would be positively related initially but growth in GDP would enable the economies to find out some alternatives and reduce the emissions n long run. This paper critically analyses the existence of hypothesized relationship of Environmental Kuznets Curve (EKC) between Gross Domestic Product (GDP) and CO2 emissions of U.S., India and China. In trying to prove the theoretical framework that economic growth (GDP) in terms of purchasing power parity and environmental deterioration are strongly related, the paper used the data of developed and developing countries mentioned above. The main aim of the paper is to check the applicability of Environmental Kuznets Curve (EKC) on the economic growth of U.S., China and India. The researcher used regression for time series analysis in analyzing the data from 1999-2018. The paper is divided into three sections with the first section covering the introduction; the second section is theoretical framework. Data analysis and presentation of findings formed the third section. The researcher finally concluded the paper by giving some suggestions in lieu of the findings.

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A validity of environmental Kuznets curve under the role of urbanization, financial development index and foreign direct investment in Pakistan

Journal of Economic and Administrative Sciences ◽

10.1108/jeas-10-2021-0219 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Abdul Farooq ◽

Ahsan Anwar ◽

Muhammad Ahad ◽

Ghulam Shabbir ◽

Zulfiqar Ali Imran

Keyword(s):

Economic Growth ◽

Unit Root ◽

Environmental Kuznets Curve ◽

Direct Investment ◽

Structural Break ◽

Cointegration Analysis ◽

Kuznets Curve ◽

Content Type ◽

Long Run

PurposeThis research aims to inspect the existence of the “environmental Kuznets curve” (EKC) in the presence of foreign direct investment (FDI), financial development (FD) and urbanization throughout 1972–2018 for Pakistan.Design/methodology/approachFor time series analysis, Phillips and Perron (PP) and Augmented Dickey–Fuller (ADF) unit root tests are used to confirm the level of integration. For robustness, Kim and Perron (2009)’s structural break unit root test is employed, which identifies the order of integration in the presence of structural break years. Further, combined cointegration analysis is performed to confirm the existence of a long-run association between underlying variables. Furthermore, autoregressive distributed lag (ARDL) analysis is employed for the robustness of the cointegration approach.FindingsThe cointegration analysis confirms the existence of a long-run association among variables. The authors find a positive and significant impact of urbanization, FD and foreign development on environmental degradation in the long run. Similarly, only FDI increases environmental degradation in the short run. In addition, the authors find an inverted U-shape relationship between economic growth and environmental quality which, further, confirms the presence of EKC in Pakistan.Originality/valueThis research contributes to applied economics in many ways: the combined effect of urbanization, FD, FDI and economic growth on carbon dioxide (CO2) emission is checked simultaneously. To avoid ambiguity, this study constructs the FD index through the principal component analysis (PCA). Moreover, the role of structural breaks has been considered through the analysis. Novel Bayer-Hanck combined cointegration analysis is employed to detect the existence of long-run relationships among underlying variables.

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The relation between water pollution and economic growth using the environmental Kuznets curve: a case study in South Korea

Water International ◽

10.1080/02508060.2015.1036387 ◽

2015 ◽

Vol 40 (3) ◽

pp. 499-512 ◽

Cited By ~ 9

Author(s):

Jaesung Choi ◽

Robert Hearne ◽

Kihoon Lee ◽

David Roberts

Keyword(s):

Water Pollution ◽

Economic Growth ◽

South Korea ◽

Environmental Kuznets Curve ◽

Kuznets Curve

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Investigating the Presence of Environmental Kuznets Curve Hypothesis in India and China: An Autoregressive Distributive Lag Approach

Jindal Journal of Business Research ◽

10.1177/2278682119880510 ◽

2019 ◽

Vol 8 (2) ◽

pp. 194-210

Author(s):

Ritu Rani ◽

Naresh Kumar

Keyword(s):

Economic Growth ◽

Environmental Degradation ◽

Environmental Kuznets Curve ◽

Kuznets Curve ◽

Annual Growth Rate ◽

Ekc Hypothesis ◽

Causality Test ◽

Long Run ◽

Short Run ◽

India And China

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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Investigating The Environmental Kuznets Curve (Ekc) Hypothesis For India: Does India Have Enough Capital To Supplement Renewable Energy Usage In The Correction of Carbon Emissions?

10.21203/rs.3.rs-1061246/v1 ◽

2021 ◽

Author(s):

Soumen Rej ◽

Barnali Nag

Keyword(s):

Economic Growth ◽

Renewable Energy ◽

Environmental Kuznets Curve ◽

Manufacturing Sector ◽

Capital Formation ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Long Run ◽

Interaction Term ◽

Reduce Emissions

Abstract India’s sustainable development goals consist of higher economic growth through strengthening of the manufacturing sector on the one hand and ambitious carbon emission reduction plans through increased renewables on the other. This paper studies the dynamic association between CO2 emissions, economic growth, renewable energy (RE) consumption and gross capital formation and tests for the existence of Environmental Kuznets Curve (EKC) hypothesis for India over the time period 1970-2018. It also tries to see if there is any possible conflict between the economic and energy goals using an interaction term between RE consumption and gross capital formation. The empirical results not only confirm long run relationship among the underlying variables but also indicate an ‘N’ shaped EKC in the long run for India indicating a departure from the traditional inverted U-shaped EKC hypothesis. RE consumption is found to reduce emissions, whereas gross capital formation and the interaction term between RE consumption and gross capital formation are found to raise emissions in the long run. The study concludes that India needs to align its economic policy of ‘Make in India’ with its energy policy so that investments under the former facilitate extensive penetration, adaptation and usage of renewable energy. A policy dichotomy between the two goals may defeat India’s INDC objective of drastic reduction in CO2 emissions through increased renewables by 2030.

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The Role of Energy Consumption, Economic Growth and Globalization in Environmental Degradation: Empirical Evidence from the BRICS Region

Sustainability ◽

10.3390/su13041924 ◽

2021 ◽

Vol 13 (4) ◽

pp. 1924

Author(s):

Habib Ur Rahman ◽

Umer Zaman ◽

Jarosław Górecki

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Least Squares ◽

Environmental Degradation ◽

Carbon Emission ◽

Panel Cointegration ◽

Ordinary Least Squares ◽

Kuznets Curve ◽

Annual Data ◽

Long Run

This paper examines the effect of energy consumption, globalization, and economic growth on the CO2 emission of the BRICS (Brazil, Russian Federation, India, China and South Africa) region. Using annual data from 1989 to 2019, this research applies a panel cointegration approach. In this framework, we use Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) methods to examine the long-run relationship between the selected variables. This empirical investigation reveals that there is a long-run association between these variables, and energy consumption positively and significantly affects the carbon emission in these countries. These results indicate that energy consumption is the primary source of environmental degradation in the region. In contrast, the globalization (KOF Index of Globalization) negatively and significantly affects the carbon emission, implying the improvement of environmental quality. Further, this research could not find the presence of environmental Kuznets curve in the region. Policy guidelines are suggested in the line of findings.

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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 ◽

10.3390/ijerph18147334 ◽

2021 ◽

Vol 18 (14) ◽

pp. 7334

Author(s):

Haider Mahmood ◽

Tarek Tawfik Yousef Alkhateeb ◽

Muhammad Tanveer ◽

Doaa H. I. Mahmoud

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Environmental Kuznets Curve ◽

Primary Energy ◽

Environmental Literature ◽

Kuznets Curve ◽

Coal Consumption ◽

Long Run ◽

Short Run ◽

Nonrenewable Energy

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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Role of Economic Growth, Financial Development, Trade, Energy and FDI in Environmental Kuznets Curve for Lithuania: Evidence from ARDL Bounds Testing Approach

Engineering Economics ◽

10.5755/j01.ee.31.1.22087 ◽

2020 ◽

Vol 31 (1) ◽

pp. 39-49 ◽

Cited By ~ 4

Author(s):

Habib-ur Rahman ◽

Ahmad Ghazali ◽

Ghulam Ali Bhatti ◽

Safdar Ullah Khan

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Financial Development ◽

Environmental Kuznets Curve ◽

Series Data ◽

Kuznets Curve ◽

Bounds Testing ◽

Long Run ◽

Ardl Bounds Testing

This paper examines the long-run relationship between carbon dioxide (CO2) emission and economic growth, financial development, trade, energy consumption, and foreign direct investment in the case of Lithuania by employing time series data of 1989-2018. In particular, this paper aims to test whether the Environmental Kuznets Curve (EKC) relationship for economic growth and financial development holds or not. The autoregressive distributed lag (ARDL) bounds testing procedure is employed for the empirical analysis. The results validate the existence of EKC in the long-run as well as in the short-run since there is an inverted U-shaped relation between CO2 emissions and economic growth. Conversely, we could not validate the EKC relationship between CO2 emissions and financial development. Trade and energy consumption are other significant determinants of CO2 emissions. The causality analysis results show that unidirectional causality runs from economic growth to CO2 emissions and trade to CO2 emissions. The validity of the EKC hypothesis indicates that Lithuania can achieve short-term, medium-term, and long-term climate change mitigation and adoption goals and objectives approved by the Parliament of the Republic of Lithuania without deteriorating its economic growth.

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