Investigating Environmental Kuznets Curve: A Panel Data Analysis for India

Structural Changes ◽

Panel Data Analysis ◽

Panel Cointegration ◽

Least Square ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Atmospheric Concentration ◽

Indian States ◽

The main objective of this study is to examine the relevance of the environmental Kuznets curve (EKC) hypothesis in describing the relationship between air pollution and development of a panel of 21 Indian states, using data for the period 2001–2016. This article attempts to use panel unit root, the panel cointegration test and panel dynamic ordinary least square approach to examine the relationship among various variables, including the atmospheric concentration of sulphur dioxide (SO2)/nitrogen dioxide (NO2), net state domestic product, social sector expenditure and other variables used as a proxy for the composition effect and development effect. The empirical analysis indicates that there exists a long-term relationship between the concentration of SO2 and NO2 with per capita income and other variables. In terms of the EKC hypothesis, the findings recommend the existence of a cubic relationship in the long run and emphasise the need to bring environment-friendly structural changes in economic activity and to enhance sustainable development through technological innovation.

Do Carbon Emissions and Economic Growth Decouple in China? An Empirical Analysis Based on Provincial Panel Data

Energies ◽

10.3390/en12122411 ◽

2019 ◽

Vol 12 (12) ◽

pp. 2411 ◽

Cited By ~ 9

Author(s):

Yu Hao ◽

Zirui Huang ◽

Haitao Wu

Keyword(s):

Economic Growth ◽

Economic Development ◽

Panel Data ◽

Carbon Emissions ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Capita Gross Domestic Product ◽

Level Of Economic Development ◽

Global warming has emerged as a serious threat to humans and sustainable development. China is under increasing pressure to curb its carbon emissions as the world’s largest emitter of carbon dioxide. By combining the Tapio decoupling model and the environmental Kuznets curve (EKC) framework, this paper explores the relationship between China’s carbon emissions and economic growth. Based on panel data of 29 provinces from 2007 to 2016, this paper quantitatively estimates the nexus of carbon emissions and economic development for the whole nation and the decoupling status of individual provinces. There is empirical evidence for the conventional EKC hypothesis, showing that the relationship between carbon emissions and per capita gross domestic product (GDP) is an inverted U shape and that the inflection point will not be attained soon. Moreover, following the estimation results of the Tapio decoupling model, there were significant differences between individual provinces in decoupling status. As a result, differentiated and targeted environmental regulations and policies regarding energy consumption and carbon emissions should be reasonably formulated for different provinces and regions based on the corresponding level of economic development and decoupling status.

Theory of Environmental Kuznets Curve

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.361-363.1697 ◽

2011 ◽

Vol 361-363 ◽

pp. 1697-1702

Author(s):

Lan Xu

Keyword(s):

Economic Growth ◽

Optimal Growth ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Growth Path ◽

State Variable ◽

Pollution Emission ◽

Optimal Growth Path ◽

The paper develops a two-state-variable environmental growth model to derive the optimal growth path for the relationship between pollution and economic growth, which is used to verify the existence of the Environmental Kuznets Curve (EKC) hypothesis. It is found that the theoretical outcomes imply the existence of the EKC relationship between environmental degradation and economic growth, which is dependent on the combining effects of the pollution intensity, abatement technology of pollution emission, production technology, and the return rate of capital stock.

Examining the Validity of EKC in Western Africa: Different Pollutants Option

Environmental Management and Sustainable Development ◽

10.5296/emsd.v4i2.7076 ◽

2015 ◽

Vol 4 (2) ◽

pp. 69 ◽

Cited By ~ 1

Author(s):

Adeyemi A. Ogundipe ◽

Oluranti I. Olurinola ◽

John T. Odebiyi

Keyword(s):

Shape Function ◽

Panel Data Analysis ◽

Pollution Level ◽

Kuznets Curve ◽

Western Africa ◽

Long Run ◽

Suspended Particulate ◽

Specific Objective ◽

The Environmental Kuznets Curve hypothesized pollution as a monotonic function of income which implies that as an economy develops, pollution level starts to increase but reaching a certain threshold the relation reverses. This study investigates the relationship between GDP per capita income and environmental degradation in Western Africa region using panel data analysis for the period 1990-2012. Our specific objective was to estimate EKC for four indicators of environmental quality such as CO2 emissions, Suspended particulate matter (PM10), lack of access to sanitation facilities and lack of access to safe drinking water; and establish whether these pollutants exhibit an inverted u-shape function. Likewise, we subject our estimated relationship to sensitivity checks to ensure robustness to changes in assumption and estimation techniques, an aspect inherently lacking in most EKC literature. The study could not find an unambiguous evidence of an inverted u-shaped relationship for CO2 emissions while the other point source pollutants confirmed the EKC theory. We subjected our estimation to further robustness checks by ascertaining the statistical properties of the variables used and examined the long run sustainability; results were found to be consistent and suitable for policy inferences.

Environmental Kuznets Curve Hypothesis: A Perspective of Sustainable Development in Indonesia

E3S Web of Conferences ◽

10.1051/e3sconf/20183109021 ◽

2018 ◽

Vol 31 ◽

pp. 09021

Author(s):

Citrasmara Galuh Nuansa ◽

Wahyu Widodo

Keyword(s):

Economic Growth ◽

Sustainable Development ◽

Environmental Degradation ◽

Environmental Quality ◽

Empirical Studies ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Descriptive Research ◽

Sustainable development with three main pillars, namely environmental, economic, and social, is the concept of country’s development to achieve inclusive economic growth, good environmental quality, and improvement of people's welfare. However, the dominance of economic factors cause various environmental problem. This phenomenon occurs in most of developing countries, including in Indonesia. The relationship between economic activity and environmental quality has been widely discussed and empirically tested by scholars. This descriptive research analysed the hypothesis called Environmental Kuznets Curve (EKC) from a perspective of sustainable development in Indonesia. EKC hypothesis illustrates the relationship between economic growth and environmental degradation forming an inverted U-curve, indicating that at the beginning of development, environmental quality will decrease along with increasing economic growth, and then reached a certain point the environmental quality will gradually improve. In this paper will be discussed how the relationship between environmental quality and economic growth in Indonesia was investigated. The preliminary results show that most of the empirical studies use the conventional approach, in which the CO2 emission used as the proxy of environmental degradation. The existence of inverted U-curve is also inconclusive. Therefore, the extension research on the relationship between economic growth and environmental quality in Indonesia using the EKC hypothesis is required.

Environmental Kuznets Curve: A Critical Review

FOCUS Journal of International Business ◽

10.17492/focus.v2i1.6431 ◽

2015 ◽

Vol 2 (1) ◽

Author(s):

Sakshi Gambhir

Keyword(s):

Economic Growth ◽

Environmental Degradation ◽

Composite Index ◽

Environmental Indicators ◽

Environmental Damage ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

The Relationship ◽

Trade And Growth

The relationship between economic growth and environmental quality has been under much dispute. Over the years, several studies have identified inverted-U shaped relationships between per capita income and some measure of environmental degradation. This has led to the emergence of a burgeoning literature on what has come to be known about as the Environmental Kuznets Curve (EKC). According to the EKC hypothesis, environmental damage increases in the early stages of economic growth, but diminishes once nations reach higher levels of income. This literature is important as it acknowledges the possibility of trade and growth being good for the environment. Against this backdrop, we have attempted to give an overview of some of the studies published on EKC and subsequently critically appraised the same. The EKC has been criticised for its simplified assumptions and the literature appears to be largely econometrically weak. It has been shown to apply to select environmental indicators for certain countries; hence its validity as a universal phenomenon remains questionable. Owing to global implications of environmental degradation, more efforts are required to examine the validity of EKC as a global phenomenon by relating a composite index of environmental degradation to a better measure of economic development across nations.

Research on the Relationship between Economic Development and Environmental Quality Based on Environmental Kuznets Curve

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.281.69 ◽

2011 ◽

Vol 281 ◽

pp. 69-73

Author(s):

Jin Ying Li ◽

Ya Jun Wei ◽

Peng Cheng

Keyword(s):

Economic Growth ◽

Decision Making ◽

Economic Development ◽

Environmental Issues ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Environment Quality ◽

Economy Growth ◽

With economy growth and industrialization, resources and environmental issues become seriously increasingly. People argue about that economy growth is whether the reason for environmental issues or the dynamic of resolving environmental issues. This argue give rise to the research upsurge of the relation of environment and economy. Environmental Kuznets Curve (EKC) hypothesis is the most typical among those. EKC is applied to analyze the relationship between economic growth and the changes of environment quality, it aims to provide a scientific reference for the decision-making policies of relevant department.

Does the Environmental Kuznets Curve Exist? An International Study

Sustainability ◽

10.3390/su12219117 ◽

2020 ◽

Vol 12 (21) ◽

pp. 9117 ◽

Cited By ~ 1

Author(s):

Nutnaree Maneejuk ◽

Sutthipat Ratchakom ◽

Paravee Maneejuk ◽

Woraphon Yamaka

Keyword(s):

Economic Growth ◽

International Economic ◽

Co2 Emissions ◽

Environmental Degradation ◽

Environmental Damage ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

The Impact ◽

This study aims to examine the relationship between economic development and environmental degradation based on the Environmental Kuznets Curve (EKC) hypothesis. The level of CO2 emissions is used as the indicator of environmental damage to determine whether or not greater economic growth can lower environmental degradation under the EKC hypothesis. The investigation was performed on eight major international economic communities covering 44 countries across the world. The relationship between economic growth and environmental condition was estimated using the kink regression model, which identifies the turning point of the change in the relationship. The findings indicate that the EKC hypothesis is valid in only three out of the eight international economic communities, namely the European Union (EU), Organization for Economic Co-operation and Development (OECD), and Group of Seven (G7). In addition, interesting results were obtained from the inclusion of four other control variables into the estimation model for groups of countries to explain the impact on environmental quality. Financial development (FIN), the industrial sector (IND), and urbanization (URB) were found to lead to increasing CO2 emissions, while renewable energies (RNE) appeared to reduce the environmental degradation. In addition, when we further investigated the existence of the EKC hypothesis in an individual country, the results showed that the EKC hypothesis is valid in only 9 out of the 44 individual countries.

A Literature Survey of the Environmental Kuznets Curve

Economic Analysis ◽

10.28934/ea.19.52.12.pp109-127 ◽

2019 ◽

Vol 52 (1) ◽

pp. 109-127

Author(s):

Petar Mitić ◽

Milena Kresoja ◽

Jelena Minović

Keyword(s):

Economic Growth ◽

Carbon Dioxide Emissions ◽

Quality Information ◽

Kuznets Curve ◽

Methodological Framework ◽

Ekc Hypothesis ◽

Independent Variables ◽

Time Period ◽

Since the 1970s, the issue of environmental degradation has received considerable attention. Environmental Kuznets curve is one of the most well-known hypotheses that explains the relationship between economic growth and environmental pollution. It represents an important model that enables policymakers to deliver quality information-based decisions. In this paper we provide the theoretical framework of the Environmental Kuznets curve and examine existing literature on the EKC hypothesis. The systematic literary survey includes studies conducted for single countries as well as for group of countries. The most of the studies were testing empirically existence of inverted U-shaped relationship between economic growth and carbon dioxide emissions. Due to the chosen time period, set of independent variables and methodological framework, the results are inconclusive in nature, which is consistent with previous literature surveys on the same topic.

Progress on the environmental Kuznets curve?

Environment and Development Economics ◽

10.1017/s1355770x98000102 ◽

1998 ◽

Vol 3 (2) ◽

pp. 173-196 ◽

Cited By ~ 195

Author(s):

DAVID I. STERN

Keyword(s):

Empirical Studies ◽

Theoretical Models ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

History Of ◽

Underlying Causes ◽

Per Capita ◽

The Relationship ◽

Stages Of Economic Development

The environmental Kuznets curve (EKC) hypothesis proposes that there is an inverted U-shape relation between environmental degradation and income per capita. This has been taken to imply that economic growth will eventually redress the environmental impacts of the early stages of economic development. The literature on this issue has developed rapidly over the last few years. This paper examines whether progress has been made on both understanding the EKC phenomenon and on addressing the various criticisms raised against some of the empirical studies and their interpretation in the policy literature. Though basic EKC studies continue to be carried out, recent work has focused on the effect of a variety of conditioning variables on the environmental impact-GDP relationship. Some attempts have also been made to examine the history of the relationship in individual countries. The econometric techniques used have improved. However, empirical decompositions of the EKC into proximate or underlying causes are either limited in scope or non-systematic, and explicit testing of the various theoretical models has not yet been attempted.

Revisiting Environmental Kuznets Curve in Sub-Sahara Africa

International Journal of Social Economics ◽

10.1108/ijse-02-2015-0034 ◽

2017 ◽

Vol 44 (2) ◽

pp. 222-231 ◽

Cited By ~ 10

Author(s):

Kolawole Ogundari ◽

Adebola Abimbola Ademuwagun ◽

Olajide Abraham Ajao

Keyword(s):

Trade Openness ◽

Ghg Emissions ◽

Least Square Method ◽

Least Square ◽

Sub Saharan Africa ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Content Type ◽

Sub Saharan

Purpose The purpose of this paper is to revisit the Environmental Kuznets Curve (EKC) model in Sub-Saharan Africa (SSA) countries by focusing on two indicators of environmental change (EC), namely rate of deforestation (RD) and all greenhouse gas emissions from agriculture (Agric_GHG) with aim of addressing two key objectives in the study. First, to investigate whether the EKC hypothesis exists for both indicators considered in the region. Second, to examine the effects of macroeconomic and institutional variables on both indicators in the study. Design/methodology/approach The authors employ a balanced panel data covering 43 countries from 1990-2009 in the study. Subsequently, the study uses serial correlation/autoregressive order one corrected cross-section time series model based on Feasible Generalized Least Square method. Findings The empirical results show that the EKC exists (i.e. as inverted U-shaped) only for all GHG emissions from agriculture. Agricultural production and trade openness increase significantly both indicators of EC considered in the study. Other results show that, population growth reduces significantly Agric_GHG, while economic growth increases significantly RD in SSA. Originality/value This is the very first study to investigate the applicability of EKC hypothesis to emissions from non-oil sector such as agriculture (i.e. all GHG emissions from agriculture) in the region.