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

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.

scholarly journals Revising the Environmental Kuznets Curve for Deforestation: An Empirical Study for Bulgaria

2019 ◽  
Vol 11 (16) ◽  
pp. 4364 ◽  
Author(s):  
Tsiantikoudis ◽  
Zafeiriou ◽  
Kyriakopoulos ◽  
Arabatzis
Keyword(s):  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
The European Union ◽  
Ekc Hypothesis ◽  
Economic Activities ◽  
Distributed Lag ◽  
Forested Areas ◽  
Negative Impacts ◽  
Usual Process

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.

scholarly journals The role of services in the environmental Kuznets curve

2020 ◽  
Vol 9 (4) ◽  
pp. 326-333
Author(s):  
Manuel Cantavella
Keyword(s):  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Economic Activities ◽  
Services Sector ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Curve Model ◽  
Carbon Dioxide Co2

This paper examines the influence of services activity in the environmental Kuznets curve (EKC) model regarding carbon dioxide (CO2) emissions. The analysis is applied for Spain during the period 1940-2014. It compares the standard environmental Kuznets curve model and its modification by isolating the evolution of services effect. The results through the autoregressive distributed-lag (ARDL) estimation strategy confirm that even though all economic activities tend to be more and more sustainable, it is the evolution of services sector that becomes fundamental in the reduction of per capita CO2 emissions.

scholarly journals ECONOMIC GROWTH AND CO2 EMISSIONS IN INDONESIA : INVESTIGATING THE ENVIRONMENTAL KUZNETS CURVE HYPOTHESIS EXISTENCE

2019 ◽  
Vol 12 (1) ◽  
pp. 42-52
Author(s):  
Azwar Iskandar
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
World Bank ◽  
Environmental Kuznets Curve ◽  
Co2 Emission ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Development Indicators ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag

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.

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 Malaysia’s Energy-Growth Nexus and Environmental Kuznets Curve Hypothesis: Empirical Analysis Using the VECM and ARDL Cointegration Techniques

2021 ◽  
Vol 8 (1) ◽  
pp. 1-27
Author(s):  
Takashi Fukuda
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Structural Break ◽  
Trade Openness ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Energy Growth ◽  
Distributed Lag ◽  
Causality Tests

This paper investigated Malaysia’s energy-growth nexus and environmental Kuznets curve (EKC) hypothesis over the period 1971-2014 by taking the globalization variables of trade openness and foreign direct investment (FDI) and the structural break dummy of the Asian financial crisis of 1997 into estimation. To give interference, the Granger causality tests were implemented in the framework of two cointegration techniques: vector error correction model (VECM) and autoregressive distributed lag (ARDL). As per Malaysia’s energy-growth nexus, referring to different results of the two approaches, we concluded that the presence of the energy-growth nexus was statistically confirmed, but it has not been fully established yet in the country. On the other hand, both the VECM and ARDL results provided the same conclusion for Malaysia’s EKC hypothesis, that is, in the initial stage, as the higher economic growth, the less CO2 emissions, but after a threshold, the higher economic growth, the more CO2 emissions.

scholarly journals Causal Interaction between FDI, Corruption and Environmental Quality in the MENA Region

Economies ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 14
Author(s):  
Wajdi Bardi ◽  
Mohamed Ali Hfaiedh
Keyword(s):  
Developed Countries ◽  
Kuznets Curve ◽  
Mena Region ◽  
Factors Affecting ◽  
Mena Countries ◽  
Distributed Lag ◽  
Empirical Estimates ◽  
Autoregressive Distributed Lag ◽  
The Impact

The present work analyzes the impact of foreign direct investment (FDI) and corruption on the quality of the environment in the MENA region. Indeed, the magnitude of corruption and the quality of institutions are often cited as the main factors affecting the FDI inflow. Here, the Autoregressive Distributed Lag (ARDL) approach was used to examine data on a group of MENA countries from 1990 to 2016. Our findings verify the Environmental Kuznets Curve. Furthermore, the empirical estimates approve the “pollution haven” hypothesis, which postulates that the polluting industrial activities of developed countries shift to developing countries which have less stringent environmental regulations. Based on the study findings, we recommend greater awareness of the harmful effects of corruption among political and economic actors.

scholarly journals Perkembangan Teknologi Informasi, TFP, dan Emisi Gas CO2 di Indonesia

2021 ◽  
Vol 21 (1) ◽  
pp. 31-40
Author(s):  
Ganiko Moddilani ◽  
Irwandi Irwandi
Keyword(s):  
Information Technology ◽  
Kuznets Curve ◽  
Factor Productivity ◽  
Ekc Hypothesis ◽  
Short Term ◽  
Gas Emissions ◽  
Co2 Gas ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag

This paper examines the development of information technology, total factor productivity (TFP), and urbanization of CO2 gas emissions in Indonesia from 1975–2014. To discuss empirically, this study uses the Autoregressive Distributed Lag (ARDL) model. There are several results in this study. Firstly, the TFP coefficient value in the short term is lower than the long term, so that the Enviromental Kuznets Curve (EKC) hypothesis is not proven. This is one of the causes of rising CO2 gas emissions. Secondly, information technology has a significant impact on the increase of CO2 gas emissions. Thirdly, Indonesia’s urbanization has reduced CO2 gas emissions. ................................................ Penelitian ini menjelaskan pengaruh perkembangan teknologi informasi, total faktor produktivitas (TFP), dan urbanisasi terhadap emisi gas CO2 di Indonesia dari tahun 1975–2014. Untuk menguji secara empiris, penelitian ini menggunakan model Autoregressive Distributed Lag (ARDL). Ada beberapa hasil dalam penelitian ini. Pertama, koefisien nilai TFP pada jangka pendek lebih rendah daripada nilai koefisiennya pada jangka panjang sehingga penelitian ini menunjukkan bahwa hipotesis Enviromental Kuznets Curve (EKC) tidak terbukti. Hal ini menjadi salah satu penyebab naiknya emisi gas CO2. Kedua, teknologi informasi memiliki dampak yang signifikan terhadap naiknya emisi gas CO2. Ketiga, urbanisasi di Indonesia mengurangi emisi gas CO2.

scholarly journals Quality of Institutions, Technological Progress, and Pollution Havens in Latin America. An Analysis of the Environmental Kuznets Curve Hypothesis

2019 ◽  
Vol 11 (13) ◽  
pp. 3708 ◽  
Author(s):  
José M. Cansino ◽  
Rocio Román-Collado ◽  
Juan C. Molina
Keyword(s):  
Environmental Stress ◽  
Latin American ◽  
Environmental Kuznets Curve ◽  
Technological Progress ◽  
Ghg Emissions ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Quality Of Institutions ◽  
Research Questions

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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