scholarly journals The wealth of nations and sustainable development: energy intensity and the environmental Kuznets curve

2020 ◽  
Vol 11 (1) ◽  
pp. 110-123 ◽  
Author(s):  
Ola Honningdal Grytten ◽  
Magnus Lindmark ◽  
Kjell Bjørn Minde
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
Energy Intensity ◽  
Polynomial Regression ◽  
Continuous Series ◽  
Kuznets Curve ◽  
Wealth Of Nations ◽  
The Relationship

Scholars warn that wealth leads to unsustainable environmental development. However, over the last decades, studies have shown an increase in environmental degradation at the initial stage of economic growth, and then a decline when economic growth reaches a certain level. This first acceleration and then deceleration create an inverted U-shaped curve between pollution and economic growth, called the environmental Kuznets curve (EKC). Environmental degradation can be measured by different factors. This paper deals with two of them, i.e. energy consumption and energy intensity (EI). The latter is measured as the ratio between energy consumption and GDP. The relationship of energy consumption and intensity to economic growth can serve as a tool for examining whether an EKC exists. The paper presents continuous series of energy consumption energy intensity and gross domestic product for the Norwegian mainland economy 1835–2019. The series are used to examine the possible existence of relative and absolute environmental Kuznets curves (EKC). Time series are established using available data and annual figures for 1835–2019, which are presented for the first time. They depict a development that, first, reflects an almost constant downward trend in EI, and, second, the existence of EKCs. The paper also proposes a polynomial regression model to discuss the relationship between environmental degradation as measured by energy consumption and intensity on the one hand, and economic growth on the other. It is concluded that there are both relative and absolute EKC-relations between environmental degradation and economic growth, with 1975 as relative and 2002 as absolute turning point.

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

2018 ◽  
Vol 31 ◽  
pp. 09021
Author(s):  
Citrasmara Galuh Nuansa ◽  
Wahyu Widodo
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Environmental Kuznets Curve ◽  
Empirical Studies ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Descriptive Research ◽  
The Relationship

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.

scholarly journals Environmental Kuznets curve and growth source in Iran

2012 ◽  
Vol 59 (5) ◽  
pp. 609-623 ◽  
Author(s):  
Maryam Asghari
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
Co2 Emission ◽  
Turning Point ◽  
Kuznets Curve ◽  
Per Capita ◽  
The Relationship

Recent empirical research has examined the relationship between certain indicators of environmental degradation and income, concluding that in some cases an inverted U-shaped relationship, which has been called an environmental Kuznets curve (EKC), exists between these variables. The source of growth explanation is important for two reasons. First, it demonstrates how the pollution consequences of growth depend on the source of growth. Therefore, the analogy drawn by some in the environmental community between the damaging effects of economic development and those of liberalized trade is, at best, incomplete. Second, the source of growth explanation demonstrates that a strong policy response to income gains is not necessary for pollution to fall with growth. The aim of this paper investigates the role of differences source of growth in environmental quality of Iran. The results show the two growth resources in Iran cause, in the early stages, CO2 emission decreases until turning point but beyond this level of income per capita, economic growth leads to environmental degradation. I find a U relationship between environmental degradation (CO2 emission) and economic growth in Iran.

Environmental Kuznets Curve: A Critical Review

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Sakshi Gambhir
Keyword(s):  
Economic Growth ◽  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
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.

scholarly journals Does the Environmental Kuznets Curve Exist? An International Study

2020 ◽  
Vol 12 (21) ◽  
pp. 9117 ◽  
Author(s):  
Nutnaree Maneejuk ◽  
Sutthipat Ratchakom ◽  
Paravee Maneejuk ◽  
Woraphon Yamaka
Keyword(s):  
Economic Growth ◽  
International Economic ◽  
Co2 Emissions ◽  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
Environmental Damage ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
The Impact ◽  
The Relationship

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.

On the nexus of CO2 emissions and renewable and nonrenewable energy consumption in Europe: A new insight from panel smooth transition

2020 ◽  
pp. 0958305X2093768 ◽  
Author(s):  
Huthaifa Alqaralleh
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Business Cycle ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Smooth Transition ◽  
Kuznets Curve ◽  
Smooth Transition Regression ◽  
Combat Climate Change ◽  
The Relationship

This study seeks, within the extended framework of the so-called environmental Kuznets curve (EKC), to analyse the nonlinear effect of economic growth and energy consumption on environmental pollution (measured by CO2 emissions) in 30 countries, over the period 2000 – 2018. The panel smooth transition regression (PSTR) model is used to allow such a relationship between variables in different economic regimes to be determined. According to the analysis results, this study strengthens the idea that the relationship can be described as a shaped business cycle, in which economic growth first increases environmental degradation, and then, after a certain growth (income) level has been reached, reduces it. This business cycle relationship suggests that environmental improvements will eventually occur as economies grow. Another implication of these results is the importance of using energy in a greener way to combat climate change and to sustain economic development.

scholarly journals Intensity Of Energy Use In The U.S.A.: 1949 - 2003

2011 ◽  
Vol 5 (11) ◽  
Author(s):  
Christopher M. Chima
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Energy Use ◽  
Energy Intensity ◽  
Kuznets Curve ◽  
Energy Prices ◽  
Font Size ◽  
Conservation Policies ◽  
The World ◽  
The Relationship

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">The particular role that energy plays in the economy of a country, and the relationship between energy consumption and economic growth are of interest to researchers, analysts, and policymakers. Energy consumption can be seen as either a cause of, or a symptom of economic growth. Therefore, understanding the nature of the interactions between energy consumption and gross domestic product (GDP) can help guide energy policies. This paper examines the energy-GDP relationship in the U.S.A. One common method used in analyzing the energy-GDP relationship is energy intensity (also called the intensity of energy use (IEU)), which is the amount of energy required to produce a unit of income (GDP). The paper begins with a substantial literature review of energy intensity studies from around the world. A summary of the findings is discussed, including the factors that were found to directly influence the intensity of energy use. The Kuznets environmental curve is then presented and used in developing a model for the IEU. The model is then tested with data for the U.S.A. from 1949 &ndash; to 2003. The results show that energy consumption is very sensitive to energy prices, which in turn impacts the GDP, and that the IEU has declined in the U.S.A. for the period tested, fitting the downward slopping segment of the Kuznets curve.<span style="mso-spacerun: yes;">&nbsp; </span>These results imply that energy conservation policies are desirable. </span></span></p>

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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