Environmental Kuznets Curve for Carbon Dioxide Emissions and Economic Growth in Algeria

2021 ◽  
Vol 15 (4) ◽  
pp. 418-432
Author(s):  
Mohammed Touitou ◽  
Raquel Langarita

This article examines how economic growth affects the environment through the lens of carbon dioxide (CO2) emissions, by testing the validity of the environmental Kuznets curve (EKC) for the case of Algeria during the period 1973–2016. For this, the auto regressive distributed lag (ARDL) method is used. The results of the econometric analysis confirm the existence of a positive long-term relationship between CO2 emissions and real GDP and show that the direction of this relationship goes from economic growth to CO2 emissions according to Granger causality tests. Specifically, for a developing country like Algeria, economic growth determines the level of emissions. This implies that an energy policy in favour of the environment can be put in place without risking negative repercussions on economic growth. In addition, the results of the ARDL regression validate EKC’s hypothesis: in the first phase, economic growth leads to a higher level of CO2 emissions, however, when a given threshold (inflection point) is reached, these emissions decrease. JEL Codes: O10, O47, Q50, Q53

Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3144
Author(s):  
Anh-Tu Nguyen ◽  
Shih-Hao Lu ◽  
Phuc Thanh Thien Nguyen

This paper examines the environmental Kuznets curve (EKC) in Vietnam between 1977 and 2019. Using the autoregressive distributed lag (ARDL) approach, we find an inverted N-shaped relation between economic growth and carbon dioxide emissions in both the long- and short-run. The econometric results also reveal that energy consumption and urbanization statistically positively impact pollution. The long-run Granger causality test shows a unidirectional causality from energy consumption and economic growth to pollution while there is no causal relationship between energy consumption and economic growth. These suggest some crucial policies for curtailing emissions without harming economic development. In the second step, we also employed the back-propagation neural networks (BPN) to compare the work of econometrics in carbon dioxide emissions forecasting. A 5-4-1 multi-layer perceptron with BPN and learning rate was set at 0.1, which outperforms the ARDL’s outputs. Our findings suggest the potential application of machine learning to notably improve the econometric method’s forecasting results in the literature.


2020 ◽  
Vol 160 ◽  
pp. 104879 ◽  
Author(s):  
Nur Hilfa Awatif Mohamad Ridzuan ◽  
Nur Fakhzan Marwan ◽  
Norlin Khalid ◽  
Mohd Helmi Ali ◽  
Ming-Lang Tseng

2021 ◽  
Vol 8 (1) ◽  
pp. 1-27
Author(s):  
Takashi Fukuda

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.


2019 ◽  
Vol 17 (1) ◽  
pp. 179-195
Author(s):  
Lech Gruszecki ◽  
Phouphet Kyophilavong ◽  
Bartosz Jóźwik

After thirty years of transformation in Central and Eastern Europe, we can see differences in the economic development of individual countries. In the paper, we decided to analyse those differences in transformation paths, economic growth and environmental degradation by carbon dioxide emission. The analysis of economic growth covers the years 1995–2017, and for the emission of carbon dioxide, the years 1995–2014. The results of the study show that the transformation in countries closer to Western Europe was faster, which contributed to faster economic growth. It is noticeable that in the following years, this economic growth in this region was stimulated by the process of European integration. What draws today’s attention is the distinctive economic growth of the Baltic States. On the other hand, carbon dioxide emissions in most countries in the region decreased in the analysed period, which has been a positive change. We are aware, however, that the presented analysis and conclusions can be treated only as an introduction to subsequent detailed studies of the environmental Kuznets curve concept.


2019 ◽  
pp. 252-268 ◽  
Author(s):  
H. Dkhili ◽  
L. B. Dhiab

This paper summarizes the arguments and counterarguments within the scientific discussion on the issue the Management of Environmental Performance and the Carbon Dioxide Emissions (CO2) on the Economic Growth, with an innovative study in the context of the GCC countries. The main goal of the paper is to examine empirically the environmental Kuznets curve hypothesis for the GCC countries. The methodological tool of this contribution tries to measure the effect of the emission of the CO2 on the Growth Economic and environmental performance. The main purpose of the research is focused on the empirical approach justified by the use of a dynamic panel modeling on a sample of the GCC countries during the period of 2002-2018. Systematization literary sources and approaches for solving the problem of the reaction of the development of the Environmental Performance with the level of the the Carbon Dioxide Emissions (CO2) and the economic growth. The study employed a GMM model system. Subsequently, the authors displayed a Panel Co-integration test of Pedroni (2004), the Kao Residual Co-integration test (1999), and the Granger causality tests. The results found unidirectional causal relationships between economic growth and the entire variable of the sample, except the variable CO2 emission. These relationships are statistically significant at the level of 5%. For the relation between Economic Growth and CO2 emission, one the hypothesis of the paper was checking a non-significant and unidirectional relationship. The results showed a long-run unidirectional causality between the variables and implied that Economic Growth in the GCC countries has a positive and significant unidirectional relation with Environment Performance, trade openness, foreign direct investment, and investment. The results confirm the existence of a negative relationship as insignificant, and unidirectional, between economic growth and CO2 emissions in the GCC countries. Finally, this finding doesn’t support the validity of the EKC hypothesis and provide information's to take the necessary policy suggestions to maintain the environmental performance and limit the average of the CO2 emissions. The results of the research can be useful for the GCC countries to avoid the higher level of Carbon Dioxide Emissions (CO2) and maintain a good Environmental Performance. Keywords: environmental performance, Environmental Kuznets Curve, CO2 emissions.


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


2018 ◽  
pp. 181-193
Author(s):  
Sarfaraz Ahmed Shaikh ◽  
Zainab Taiyyeba ◽  
Khalid Khan

This study inspects the dynamic effect of technological innovation, financial development, economic growth, and energy consumption on carbon dioxide (CO2) emissions. We applied the auto-regressive distributed lag (ARDL) model technique for the period from 1980 to 2017. The quantitative outcomes show a negative and insignificant relationship between technological innovation and environmental pollution in China during the said period. Furthermore, the long-run assessment results disclose that economic growth; boost-up the environmental quality of China. Thus, the results support the Environmental Kuznets Curve (EKC) hypothesis, which means that environmental degradation can be resolved inevitably by economic growth. Similarly, results show that the financial sector development exerts a positive impact on environmental quality.


Energies ◽  
2020 ◽  
Vol 13 (15) ◽  
pp. 3956 ◽  
Author(s):  
Elkhan Richard Sadik-Zada ◽  
Wilhelm Loewenstein

The present inquiry addresses the income-environment relationship in oil-producing countries and scrutinizes the further drivers of atmospheric pollution in the respective settings. The existing literature that tests the environmental Kuznets curve hypothesis within the framework of the black-box approaches provides only a bird’s-eye perspective on the long-run income-environment relationship. The aspiration behind this study is making the first step toward the disentanglement of the sources of carbon dioxide emissions, which could be employed in the pollution mitigation policies of this group of countries. Based on the combination of two strands of literature, the environmental Kuznets curve conjecture and the resource curse, the paper at hand proposes an augmented theoretical framework of this inquiry. To approach the research questions empirically, the study employs advanced panel cointegration techniques. To avoid econometric misspecification, the study also employs for the first time a nonparametric time-varying coefficient panel data estimator with fixed effects (NPFE) for the dataset of 37 oil-producing countries in the time interval spanning between 1989 and 2019. The empirical analysis identifies the level of per capita income, the magnitude of oil rents, the share of fossil fuel-based electricity generation in the energy mix, and the share of the manufacturing sector in GDP as essential drivers of carbon dioxide emissions in the oil-rich countries. Tertiarization, on the contrary, leads to a substantial reduction of emissions. Another striking result of this study is that level of political rights and civil liberties are negatively associated with per capita carbon emissions in this group of countries. Furthermore, the study decisively rejects an inverted U-shaped income-emission relationship and validates the monotonically or exponentially increasing impact of average income on carbon dioxide emissions.


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.


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