A comparative analysis of environmental quality and Kuznets curve between two newly industrialized economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kanon Kumar Sen ◽  
Md. Thasinul Abedin

PurposeDue to large amounts of coal burning, huge carbon dioxide emission and poor environmental quality, it is important to identify whether environmental Kuznets curve exists in China and India since in downward period of environmental Kuznets curve, economic growth in these countries will largely contribute to world environmental quality. Further, it helps to make a comparative analysis between China and India on how economic growth will contribute to the environmental quality in both upward and downward period of environmental Kuznets curve due to energy consumption.Design/methodology/approachThis study uses the data of carbon dioxide emission, per capita GDP and energy consumption from 1972 to 2017 to identify individual and panel-level environmental Kuznets curve of China and India. Before going to regression and causality analysis, unit root and cointegration tests are performed.FindingsThis study finds the existence of environmental Kuznets curve in China and India at both individual and panel level. Further, due to high energy consumption, environmental quality in China will deteriorate at a lower rate in the long run than that of India. Next, the increase in economic growth or per capita GDP in the long run will deteriorate environmental quality at a lower rate in China than that of India. Besides, with the zero level of energy consumption and per capita GDP, the environmental quality of China will be worse than that of India. However, increase in per capita GDP after threshold level will improve environmental quality in India at a higher rate than that of China.Research limitations/implicationsIt helps to formalize the comparative relationship between the two large Asian economies by knowing the influence of economic growth on environmental degradation due to energy consumption. However, this study cannot conclude exactly when China and India can avail the downturn in environmental Kuznets curve.Originality/valueIt firstly establishes a link among energy consumption, economic growth and environmental quality between China and India including comparative pace in both upward and downward period of environmental Kuznets curve.

2020 ◽  
Author(s):  
Suleyman Yurtkuran

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.


2021 ◽  
Vol 9 ◽  
Author(s):  
Muhammad Imran Khan ◽  
Muhammad Kamran Khan ◽  
Vishal Dagar ◽  
Bahareh Oryani ◽  
Syeda Saba Akbar ◽  
...  

This study intends to examine the validity of the Environmental Kuznets Curve (EKC) in the United States of America (USA), considering the vital role of macroeconomic variables, such as economic growth, institutional quality, globalization, energy consumption, financial development, urbanization, and remittance from 1985 to 2020. The impact of positive/negative shock in a regressor on CO2 emissions keeps other regressors unchanged and has been investigated using the novel dynamic stimulated autoregressive distributed lag (ARDL) model. The empirical findings revealed the positive impact of economic growth and negative impact of the square economic growth on environmental degradation in the short- and long term. It indicates the validity of the EKC hypothesis in the case of the USA. Moreover, financial development, energy consumption, globalization, remittances inflow, and urbanization reduce the environmental quality. On the contrary, institutional quality improves the environmental quality by reducing CO2 emissions. The appropriate recommendations to design the inclusive economic-environment national energy policy were proposed.


2021 ◽  
Vol 50 (3) ◽  
pp. 241-268
Author(s):  
Mohammed Touitou

This study aimed at examining the Environmental Kuznets curve hypothesis for Atmospheric pollution and economic growth in Algeria, in the period 1980–2017. As indicators of pollution emissions were chosen CO2 emissions per capita (PECO2), SO2 emissions per capita (PESO2), and NOx emissions per capita (PENOx). To prove these relations, we are using time series data in Vector Autoregression model supported by cointegration tests. The results indicated that the assumption of Environmental Kuznets curve was confirmed for the case of Algeria, where the mapping showed us a curve in inverse U-shape Environmental Kuznets curve characterized by a rising phase that peaked when the level GDP was highest to move to a new downward phase where environmental quality is improving over time. In terms of the direction of causality, we identified a causal relationship to Granger from GDP to the different emissions, which justifies that the implementation of a range of measures protecting the environmental quality of Algeria should be the top priority in the context of sustainable development and enhancing the long-run growth. To reduce pollution emissions, Algeria is called upon to increase significantly the use of renewable energies and the establishment of a more efficient energy policy.


2015 ◽  
Vol 45 (1) ◽  
pp. 108-126 ◽  
Author(s):  
Anna Mazur ◽  
Zaur Phutkaradze ◽  
Jaba Phutkaradze

Abstract This research empirically explores the relation between carbon dioxide emission and economic growth during the period 1992-2010, using panel data on the European Union countries. Both fixed and random effect models are employed to test the Environmental Kuznets Curve (EKC) relationship between CO2 emissions and GDP per capita. While no U-shaped EKC was confirmed empirically for all 28 current EU member states, the graphical analysis demonstrates a justified turning point for CO2 emissions as GDP per capita reaches the level of 23,000 USD. Furthermore, there is a firm empirical ground for the EKC hypothesis based on data from 16 older, relatively high-income EU states. Thus, though not empirically confirmed, there is ample data verifying the existence of the EKC in EU economies.


2021 ◽  
Vol 2021 (68) ◽  
pp. 42-58
Author(s):  
Essa Alhannom ◽  
Ghaleb Mushabab

Abstract This study investigates the validity of the Environmental Kuznets Curve hypothesis in Yemen and the causal relationships between Carbon dioxide emissions, per capita income, energy consumption, trade openness, and industrial share to GDP. ARDL bounds testing approach to cointegration, Error Correction Model, and Toda-Yamamoto procedure to Granger causality techniques were employed on annual data covering the period from 1990 to 2010. long run relationship between CO2 emissions and its determinants with significant effects for per capita GDP and trade openness, whereas, energy consumption and trade openness appear to be important determinants of CO2 emissions in the short run. Besides, based on Narayan and Narayan (2010) approach, it is found that the EKC hypothesis does not hold in Yemen and therefore the effect of per capita income on CO2 emissions is monotonically increasing. Toda-Yamamoto causality test proved the existence of bidirectional causal relationships between economic growth and CO2 emissions, between energy consumption and economic growth, and between trade openness and energy consumption


Author(s):  
Junran Ma

With the development of economy, environmental problems gradually outstanding in China. This article adopts the method of empirical study, have collected the data of China's industrial added value, per capita GDP and emissions of the three major pollutants from 2004 to 2015. The VAR model was established on the basis of the logarithm values of the three factors mentioned above, so as to conduct impulse- response analysis to discuss the relationship between industrialization level, economic development and environmental pollution. The conclusion is as follows: (1) At present, the increase of China's industrial added value can promote the decline of China's environmental pollution emissions to a certain extent; (2) China is now at the left of the turning point of the Environmental Kuznets Curve, and the increase of per capita GDP will aggravate environmental pollution.


2021 ◽  
Author(s):  
Özge Yüksel

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.


2013 ◽  
Vol 807-809 ◽  
pp. 773-782
Author(s):  
Qing Song Li ◽  
Kai Kang ◽  
Jia Wei Zhu ◽  
Qing Xiang Meng ◽  
Su Jun Deng

The study set up the model of per capita GDP and the environmental index based on the Environmental Kuznets Curve (EKC) with the support of SPSS software and the 2003-2011 economics and environment data of Puyang City. And the result shows that the environmental Kuznets Curve (EKC) of industrial wastewater discharge and industrial sulfur dioxide emissions both display inverted U-shape; and just across the turning point, the discharge present downward trend with the increasing of per capita GDP; while the EKC of industrial fumes emissions display positive U-shape, and its emission present upward trend first and then downward with the increasing of per capita GDP. It shows that the environmental problems of Puyang City has partly improved, but has not been fully restrained. The main reasons are unreasonable industrial structure, single dominated industy and relatively low investment on environmental improvement.


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