scholarly journals Poverty, income inequality, and energy consumption based on EKC hypothesis: Evidence from developed and developing countries

2021 ◽  
Author(s):  
Yusuf Ekrem Akbas ◽  
Fuat Lebe
Keyword(s):  
Developing Countries ◽  
Energy Consumption ◽  
Income Inequality ◽  
Unit Root Test ◽  
Developed Countries ◽  
Primary Objective ◽  
Seemingly Unrelated Regression ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
The Relationship

Abstract The primary objective of this study is to examine the relationship between carbon dioxide (CO2) emissions, energy consumption, income inequality, and poverty within the framework of the Environmental Kuznets Curve (EKC) in 14 developed and ten developing countries over the period 2000–2018. We employed the Fourier unit root test and Dynamic Seemingly Unrelated Regression (DSUR) estimator to analyze the relationship between these variables. The results show that in developing countries, income inequality, poverty, and energy consumption positively affect CO2 emission. In contrast, in developed countries, there is no significant relationship between these variables. Moreover, we found out that the EKC hypothesis, which suggests an inverted U-shaped relationship between per capita income and CO2 emissions, is valid in developed countries and invalid in developing countries. We determined that the turning points obtained from regression analysis are outside of the sample period in five developing countries (Argentina, Armenia, Kazakhstan, Panama, and Uruguay). These results show that income inequality and poverty can indirectly affect environmental quality by energy consumption in developing countries.

scholarly journals Income Inequality and Economic Growth: An Analysis Using a Panel Data

2018 ◽  
Vol 10 (5) ◽  
pp. 242
Author(s):  
Mohamed Bouincha ◽  
Mohamed Karim
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Developed Countries ◽  
Global Model ◽  
Kuznets Curve ◽  
Main Indicator ◽  
Development Indicator ◽  
Long Time ◽  
The Developed Countries ◽  
The Relationship

A long time ago, economic growth was the main indicator of countries’ economic health. However, since the 1970s, the analysis of the relationship between economic growth and other economic phenomena such as inequality has begun to grow (Sundrum, 1974). Much of the literature on the link between economic growth and income inequality is based on Kuznets revolutionary theory. The purpose of our article is to suspect the causality relationship between growth and inequality. To do this, we used data from 189 countries for the period between 1990 and 2015. We estimated a global model and three other of each category of countries in terms of development. In the global model, economic growth is insignificant even if its sign is positive. The same result appears in the developing country model and the moderately developed countries one. However, in the developed countries model, economic growth is negatively and statistically related to inequality. The Kuznets curve is approved in our study only when using human development indicator in the place of growth. Growth explain inequality’s movement in our study only in the model of developed countries and its coefficient is negative.

scholarly journals Agriculture and Non-Agriculture Growth, Inflation and Income Inequality in Developed and Developing Countries

2019 ◽  
Vol 11 (11) ◽  
pp. 43 ◽  
Author(s):  
Sima Siami-Namini
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Income Inequality ◽  
Inflation Rate ◽  
Developed Countries ◽  
Kuznets Curve ◽  
Nonlinear Relationship ◽  
Large Sample ◽  
Cyclical Component ◽  
Hp Filter

The aim of this article is to examine how agriculture and non-agriculture growth and inflation affect income inequality. The multivariate panel data approach is used to examine the application of Kuznets hypothesis between income inequality and agriculture and non-agriculture growth and test the existence of nonlinear relationship between income inequality and inflation rate in a large sample of data collected for developed and developing countries. The Hodrick-Prescott (HP) filter is used to separate the cyclical component from the trend component of inflation rate and agriculture and non-agriculture growth. The results demonstrate a significant negative nonlinear relationship between income inequality and the HP filtered inflation rate squared in developed countries. The findings confirm the application of a ‘U-shaped’ of Kuznets curve between income inequality and agriculture growth and between income inequality and non-agriculture growth in developed countries. In addition, the results show Kuznets inverted ‘U-shaped’ curve between agriculture growth and income inequality, and Kuznets ‘U-shaped’ curve between non-agriculture growth and income inequality in developing countries.

Income Inequality, Economic Growth and Carbon Dioxide Emissions Nexus: Empirical Evidence from Ethiopia

2021 ◽  
Author(s):  
Shemelis Kebede Hundie
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Unit Root ◽  
Carbon Dioxide Emissions ◽  
Unit Root Test ◽  
Policy Implications ◽  
Kuznets Curve ◽  
Low Carbon ◽  
Long Run ◽  
The Relationship

Abstract The relationship between income inequality, economic growth and CO2 emissions is ambiguous both theoretically and empirically. Hence, this study examines the link between income inequality and CO2 emissions in Ethiopia for time span covering 1979–2014 using ARDL bounds test and DOLS approach to cointegration. The Zivot-Andrews unit root test and Clemente-Montanes-Reyes unit root test reveal that some of the variables under consideration are stationary at level while others become stationary after first differencing. Both ARDL and DOLS approaches confirm that there is a long-run relationship among the series during the study period. The long-run empirical results show that a 1% increase in economic growth accounts for a 1.05% increase in CO2 emissions while a 1% increase in economic growth squared reduces CO2 emissions by 0.11%. The U-test result reveals that the relationship between CO2 emissions and economic growth confirms existence of the Environmental Kuznets Curve hypothesis. The effect of income inequality on CO2 is not robust to alternative estimation techniques; it is statistically insignificant under the ARDL estimation, but DOLS estimates show that a 1% increase in income inequality increases CO2 emissions by 0.21% in the long-run during the study period. In the long-run a 1% rise in urbanization, population size, energy intensity and industrialization each positively contribute to environmental degradation in Ethiopia by 0.38%, 0.22%, 0.07% and 0.11% respectively. Results from the Toda-Yamamoto Granger causality show a bidirectional causal relationship between CO2 emissions and all other variables except economic growth. CO2 emissions granger causes economic growth with no feedback effect. Results suggested important policy implications in the light of achieving its 2030 targets of low-carbon economy for Ethiopia.

scholarly journals Environmental Kuznets curve (EKC): Empirical relationship between economic growth, energy consumption, and CO2 emissions: Evidence from 3 developed countries

2020 ◽  
pp. 4-4 ◽  
Author(s):  
Emrah Beşe ◽  
Salih Kalayci
Keyword(s):  
United Kingdom ◽  
Energy Consumption ◽  
Environmental Kuznets Curve ◽  
Developed Countries ◽  
Cointegration Test ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
The United Kingdom ◽  
Johansen Cointegration Test

In this study, the environmental Kuznets curve (EKC) hypothesis is examined for 3 developed countries, which are Denmark, the United Kingdom, and Spain, for the period between 1960 and 2014. The EKC hypothesis is examined under 2 nexuses which are GDP, CO2 and energy consumption, and GDP, CO2, energy consumption and the square of GDP. Causal and long-term relationships between GDP, CO2, and energy consumption are examined for these 3 developed countries using the ARDL bounds test, the Toda and Yamamoto Granger non-causality test, the VAR Granger Causality/Block Exogeneity Wald test, and the Johansen cointegration test. Long-term relationships between GDP, CO2, energy consumption, and the square of GDP are examined by the Johansen cointegration test. The EKC hypothesis is not confirmed for Denmark, the United Kingdom, and Spain, and the neutrality hypothesis is confirmed for these 3 developed countries. Unidirectional causality running from energy consumption to CO2 is found for Denmark, and unidirectional causality running from CO2 to energy consumption is found for the United Kingdom.

Income inequality and shadow economy: a nonparametric and semiparametric analysis

2018 ◽  
Vol 45 (1) ◽  
pp. 2-13 ◽  
Author(s):  
Wai Weng Yap ◽  
Tamat Sarmidi ◽  
Abu Hassan Shaari ◽  
Fathin Faizah Said
Keyword(s):  
Developing Countries ◽  
Income Inequality ◽  
Shadow Economy ◽  
Semiparametric Regression ◽  
Developed Countries ◽  
Oecd Countries ◽  
Nonlinear Relationship ◽  
Content Type ◽  
Semiparametric Analysis ◽  
The Relationship

Purpose The purpose of this paper is to investigate the nonlinear relationship between shadow economy and income inequality and determine whether the size of shadow economy can influence the level of income inequality. Design/methodology/approach Both parametric (panel OLS) and nonparametric/semiparametric regression suggested by Robinson (1988) will be used to capture the dynamic nonlinear relationship between these variables using unbalanced panel data of 154 countries from 2000 to 2007. Additionally, the relationship between income inequality and shadow economy on both developed and developing countries will be analyzed and compared. Findings First, semiparametric analysis and nonparametric analysis are significantly different than parametric analysis and better in nonlinear analysis between income inequality and shadow economy. Second, income inequality and shadow economy resemble an inverted-N relationship. Third, the relationship between income inequality and shadow economy is different in developed countries (OECD countries) and developing countries, where OECD countries have similar inverted-N relationship as before. However, for developing countries, income inequality and shadow economy show an inverted-U relationship, similar to the original Kuznets hypothesis. Practical implications This study suggests that there is a possible trade-off between income inequality and shadow economy and helps policy makers in solving both problems effectively. Originality/value Despite the growing importance of income inequality and shadow economy, literature linking the two variables is scarce. To the best of the authors’ knowledge, there is no literature that nonlinearly links these two variables. Furthermore, the dynamics of the relationship between these two variables in developed countries and developing countries will be explored as well.

scholarly journals The dynamics of CO2 emissions, energy consumption and economic development: Evidence from the top 28 greenhouse gas emitters

2021 ◽  
Author(s):  
Lei Jin ◽  
Yuan-hua Chang ◽  
Meng Wang ◽  
Xin-zhu Zheng ◽  
Jian-xun Yang ◽  
...  
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Causal Relationship ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Developed Countries ◽  
Renewable Energy Consumption ◽  
The Relationship

Abstract Previous studies have done more research on the relationship between carbon emission reduction, energy consumption and economic growth in specific countries or regions, which rarely consider the issue of heterogeneity between countries or regions, and also lack the refinement of energy consumption categories. Using panel data from 2000 to 2017,this paper divided the top 28 global carbon emission countries into developed countries and developing countries, and explores cointegration and causality between renewable energy consumption,non-renewable energy consumption, economic growth and carbon emission. Results suggested that there is a two-way causal relationship between carbon emissions and economic growth in all economies. There is a two-way causal relationshipbetween economic growth in developed countries and consumption of renewable and non-renewable energy, while there is no significant relationship between economic growth and energy consumption in developing countries. There is a two-way causal relationship between carbon emissions and renewable energyin all economies, but there are significant differences; there is a two-way causal relationship between carbon emissions in developed countries and non-renewable energy, and only one-way causality exists in developing countries.

scholarly journals The Relationship between Economic Growth and Pollution in Some New European Union Member States: A Dynamic Panel ARDL Approach

Energies ◽  
2021 ◽  
Vol 14 (9) ◽  
pp. 2363
Author(s):  
Mihaela Simionescu ◽  
Carmen Beatrice Păuna ◽  
Mihaela-Daniela Vornicescu Niculescu
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Ghg Emissions ◽  
Kuznets Curve ◽  
Renewable Energy Consumption ◽  
Panel Ardl ◽  
Domestic Credit ◽  
The Impact ◽  
The Relationship

Considering the necessity of achieving economic development by keeping the quality of the environment, the aim of this paper is to study the impact of economic growth on GHG emissions in a sample of Central and Eastern European (CEE) countries (V4 countries, Bulgaria and Romania) in the period of 1996–2019. In the context of dynamic ARDL panel and environmental Kuznets curve (EKC), the relationship between GHG and GDP is N-shaped. A U-shaped relationship was obtained in the renewable Kuznets curve (RKC). Energy consumption, domestic credit to the private sector, and labor productivity contribute to pollution, while renewable energy consumption reduces the GHG emissions. However, more efforts are required for promoting renewable energy in the analyzed countries.

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