Economic growth and sustainability: An analysis of the Environmental Kuznets Curve on the Legal Amazon

2021 ◽  
Vol 13 (2) ◽  
Author(s):  
Vasconcelos Reis Wakim ◽  
Jaques Otto Roma ◽  
Elizete Aparecida de Magalhães
Keyword(s):  
Economic Growth ◽  
Environmental Kuznets Curve ◽  
Fixed Effects ◽  
Research Problem ◽  
High Income ◽  
Kuznets Curve ◽  
Income Levels ◽  
Deforestation Rates ◽  
Initial Stage ◽  
The Government

The objective of this work was to analyze how deforestation of the Legal Amazon (AMZ-L) is affected by the economic growth of the states it covers, from 2000 to 2017. This study is based on the Environmental Kuznets Curve theory (EKC), proposed by Grossman and Krueger (1991). We used the panel data method considering the fixed effects to answer the research problem. The hypothesis of the EKC, in fact, happens in the initial stage, showing that, with the increase in income, deforestation rates drop, causing the curve to reverse, taking an inverted “U” shape. However, at high-income levels, deforestation increases again, thus the curve takes an “N” shape. Considering this scenario, we can conclude that the increase in income alone does not guarantee deforestation reduction. However, we must emphasize that deforestation rates are lower than in the initial stage at high-income levels, showing the government intervention is needed.

scholarly journals Primal-Dual Approach to Environmental Kuznets Curve Hypothesis: A Demand and Supply Side Analyses of Environmental Degradation.

2021 ◽  
Author(s):  
gildas dohba dinga ◽  
DOBDINGA CLETUS FONCHAMNYO ◽  
ELVIS DZE ACHUO
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
Correlation Effect ◽  
High Income ◽  
Green Economy ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Primal Dual ◽  
Sustainable Economic Growth

Abstract Global warming and its unavoidable negatives effects on man and the environment have been a key if not the most important issue occupying policy makers in the world at large today. The much talked about green economy nowadays seeks to achieve sustainable economic growth and development without compromising environmental quality. The relationship between environmental degradation and economic growth is largely explained by the environmental Kuznets Curve (EKC) hypothesis. By employing the basic postulation of the baseline EKC framework, this study proposes and tests the existence of a dualistic approach of the EKC hypothesis. Geometry is used to illustrate the proposed dualistic model. Meanwhile, the novel dynamic common correlation effect econometric technique is employed to test the existence of the dualistic EKC within a panel of 109 countries from 1995 to 2016. The outcome from the estimated models shows that, in the global sample, the existence of the dualistic U-shape and N-shape EKC hypothesis is validated. When the sample is split into sub samples based on income levels, the U-shape EKC hypothesis is validated for lower income and high income economies meanwhile, the N-shape dualistic EKC is mostly associated with high income economies.

scholarly journals Income Heterogeneity and the Environmental Kuznets Curve Turning Points: Evidence from Africa

2021 ◽  
Vol 13 (10) ◽  
pp. 5634
Author(s):  
Mark Awe Tachega ◽  
Xilong Yao ◽  
Yang Liu ◽  
Dulal Ahmed ◽  
Wilhermina Ackaah ◽  
...  
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Low Income ◽  
Environmental Kuznets Curve ◽  
Turning Points ◽  
High Income ◽  
Least Square ◽  
Kuznets Curve ◽  
Middle Income ◽  
Income Groups

The concept of environmental sustainability aims to achieve economic development while achieving a sustainable environment. The inverted U-shape relationship between economic growth and environmental quality, also called Environmental Kuznets Curve (EKC), describes the correlation between economic growth and carbon emissions. This study assesses the role of agriculture and energy-related variables while evaluating the EKC threshold in 54 African economies, and income groups, according to World Bank categorization, including low income, lower-middle, upper-middle, and high-income in Africa. With 1990–2015 panel data, the results are estimated using panel cointegration, Fully Modified Ordinary Least Square (FMOLS), and granger causality tests. The results are: (1) The study validated the EKC hypothesis in the low-income, lower-, and upper-middle-income economies. However, there is no evidence of EKC in the full African and high-income panels. Furthermore, the turning points of EKC in the income group are meagerly low, showing that Africa could be turning on EKC at lower income levels. (2) The correlation between agriculture with CO2 is found positive in the high-income economy. However, agriculture has a mitigation effect on emissions in the lower-middle-income and low-income economies, and the full sample. Also, renewable energy is negatively correlated with emissions in Africa and the high-income economy. In contrast, non-renewable energy exerts a positive effect on emissions in all income groups except the low-income economies.

scholarly journals How agriculture, manufacture, and urbanization induced carbon emission? The case of Indonesia

2020 ◽  
Vol 27 (33) ◽  
pp. 42092-42103 ◽  
Author(s):  
Slamet Eko Prastiyo ◽  
Irham ◽  
Suhatmini Hardyastuti ◽  
Jamhari
Keyword(s):  
Economic Growth ◽  
Environmental Kuznets Curve ◽  
Agricultural Sector ◽  
Manufacturing Sector ◽  
Environmental Damage ◽  
Kuznets Curve ◽  
Manufacturing Sectors ◽  
Causality Relationship ◽  
The Government ◽  
The Impact

Abstract The agriculture and manufacturing sectors are the backbones of the Indonesian economy; for this reason, research on the effects of these sectors on carbon emissions is an important subject. This work adds urbanization to enrich research on the Environmental Kuznets Curve (EKC) in Indonesia. The results of this study indicate that the EKC hypothesis was confirmed in Indonesia with a turning point of 2057.89 USD/capita. The research results show that all variables affect the escalation of greenhouse gas emissions in Indonesia. Furthermore, there is a bidirectional causality relationship between emissions with economic growth, emissions with agricultural sector, emissions with manufacturing sector, economic growth with agricultural sector, and economic growth with manufacturing. The unidirectional causality is found in emissions by urbanization and economic growth by urbanization. To reduce the impact of environmental damage caused by the activities of agriculture, manufacturing, and urbanization sectors, it is recommended that the government conduct water-efficient rice cultivation and increase the use of renewable energy.

scholarly journals Revisiting the Environmental Kuznets Curve Hypothesis: A Case of Central Europe

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3415
Author(s):  
Bartosz Jóźwik ◽  
Antonina-Victoria Gavryshkiv ◽  
Phouphet Kyophilavong ◽  
Lech Euzebiusz Gruszecki
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Central Europe ◽  
Environmental Kuznets Curve ◽  
European Countries ◽  
Kuznets Curve ◽  
The European Union ◽  
Ekc Hypothesis ◽  
Central European ◽  
Long Run

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.

scholarly journals Drivers of CO2-Emissions in Fossil Fuel Abundant Settings: (Pooled) Mean Group and Nonparametric Panel Analyses

Energies ◽  
2020 ◽  
Vol 13 (15) ◽  
pp. 3956 ◽  
Author(s):  
Elkhan Richard Sadik-Zada ◽  
Wilhelm Loewenstein
Keyword(s):  
Carbon Dioxide ◽  
Carbon Dioxide Emissions ◽  
Environmental Kuznets Curve ◽  
Fixed Effects ◽  
Fossil Fuel ◽  
Substantial Reduction ◽  
Resource Curse ◽  
Time Interval ◽  
Kuznets Curve ◽  
Per Capita

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.

The coordination between China’s economic growth and environmental emission from the Environmental Kuznets Curve viewpoint

2016 ◽  
Vol 83 (1) ◽  
pp. 233-252 ◽  
Author(s):  
Xiaosheng Li ◽  
Xia Yan ◽  
Qingxian An ◽  
Ke Chen ◽  
Zhen Shen
Keyword(s):  
Economic Growth ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve

scholarly journals Testing the Environmental Kuznets Curve Hypothesis for Turkey: The Role of Clean Energy Consumption and Ecological Footprint

2020 ◽  
Author(s):  
Suleyman Yurtkuran
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Capita Income ◽  
Environmental Kuznets Curve ◽  
Ecological Footprint ◽  
Clean Energy ◽  
Kuznets Curve ◽  
Per Capita ◽  
Environmental Kuznets Curve Hypothesis

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.

Demystifying the environmental Kuznets curve: turning a black box into a policy tool

1997 ◽  
Vol 2 (4) ◽  
pp. 465-484 ◽  
Author(s):  
THEODORE PANAYOTOU
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Reduced Form ◽  
Kuznets Curve ◽  
Income Levels ◽  
Policy Tool ◽  
Explicit Consideration ◽  
Speed Up ◽  
Form Approach

The reduced-form approach to the income–environment relationship has been a useful first step towards answering the question of how economic growth affects the environment. However, without an explicit consideration of the underlying determinants of environmental quality, the scope for policy intervention is unduly circumscribed. In this paper a modest attempt is made to incorporate explicit policy considerations into the income–environment relationship and to explore its determinants as a step towards a better understanding of this relationship and its potential as a policy tool. The role of the rate of economic growth and population density is also explored. A main finding is that at least in the case of ambient SO2 levels, policies and institutions can significantly reduce environmental degradation at low income levels and speed up improvements at higher income levels, thereby flattening the EKC and reducing the environmental price of economic growth.

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