scholarly journals Analysis of the Validity of Environmental Kuznets Curve for the Baltic States

Author(s):  
Giedrė Lapinskienė ◽  
Manuela Tvaronavičienė ◽  
Pranas Vaitkus

Abstract The paper analyses a traditional Environmental Kuznets Curve (EKC) relationship between greenhouse gases (GHG) and gross domestic product (GDP), extending the research to include some additional factors, such as environmental tax, research and development expenditure, implicit tax rate on energy, primary production of coal and lignite, energy intensity of the economy taken from the Eurostat database. The EKC indicates that, at the early stages of economic growth, pollution increases with the growing use of resources, but when a certain level of income per capita is reached, the trend reverses so that, at a higher development stage, further economic growth leads to the improvement of the environment. In the first part of the research, the validity of the reduced EKC for the Baltic region for the period 1995-2008 is determined. In the second part, the impact of selected factors is statistically tested. In both cases, the standard cubic equation is used because it is believed that this model is the most accurate for the development stage of this region. The research results may be useful for climate change policy design.

2014 ◽  
Vol 20 (1) ◽  
pp. 65-78 ◽  
Author(s):  
Giedrė Lapinskienė ◽  
Manuela Tvaronavičienė ◽  
Pranas Vaitkus

The paper considers the relationship between greenhouse gas emissions (GHG) as the main variable of climate change and gross domestic product (GDP), using the environmental Kuznets curve (EKC) technique. At early stages of economic growth, EKC indicates the increase of pollution related to the growing use of resources. However, when a certain level of income per capita is reached, the trend reverses and at a higher stage of development, further economic growth leads to improvement of the environment. According to the researchers, this implies that the environmental impact indicator is an inverted U-shaped function of income per capita. In this paper, the cubic equation is used to empirically check the validity of the EKC relationship for European countries. The analysis is based on the survey of EU-27, Norway and Switzerland in the period of 1995–2010. The data is taken from the Eurostat database. To gain some insights into the environmental trends in each country, the article highlights the specific relationship in the country based on the level of its development. The similarities between individual countries are analysed in order to identify their basic common features.


2017 ◽  
Vol 64 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Romualdas Ginevicius ◽  
Giedrė Lapinskienė ◽  
Kęstutis Peleckis

The paper aims to describe the evolution of the environmental Kuznets curve, from its origin up to its present status, and to systemise the results of the empirical studies of the relationship between the emissions of greenhouse gases and economic growth. The environmental Kuznets curve indicates that at the early stages of economic growth, pollution increases with the growing use of resources, but when a certain level of income per capita is reached, the trend reverses so that, at a higher development stage, further economic growth leads to the improvement of the environment. The paper starts with a description of the most influential theories of the environmental economics that helps to highlight an effective environmental approach. The article may be useful for scientists and policy makers, analysing the trends of the economic development of various countries and the problems of the relationship between the environmental indicators and economic growth.


Author(s):  
David I. Stern

The environmental Kuznets curve (EKC) is a hypothesized relationship between environmental degradation and GDP per capita. In the early stages of economic growth, pollution emissions and other human impacts on the environment increase, but beyond some level of GDP per capita (which varies for different indicators), the trend reverses, so that at high income levels, economic growth leads to environmental improvement. This implies that environmental impacts or emissions per capita are an inverted U-shaped function of GDP per capita. The EKC has been the dominant approach among economists to modeling ambient pollution concentrations and aggregate emissions since Grossman and Krueger introduced it in 1991 and is even found in introductory economics textbooks. Despite this, the EKC was criticized almost from the start on statistical and policy grounds, and debate continues. While concentrations and also emissions of some local pollutants, such as sulfur dioxide, have clearly declined in developed countries in recent decades, evidence for other pollutants, such as carbon dioxide, is much weaker. Initially, many understood the EKC to imply that environmental problems might be due to a lack of sufficient economic development, rather than the reverse, as was conventionally thought. This alarmed others because a simplistic policy prescription based on this idea, while perhaps addressing some issues like deforestation or local air pollution, could exacerbate environmental problems like climate change. Additionally, many of the econometric studies that supported the EKC were found to be statistically fragile. Some more recent research integrates the EKC with alternative approaches and finds that the relation between environmental impacts and development is subtler than the simple picture painted by the EKC. This research shows that usually, growth in the scale of the economy increases environmental impacts, all else held constant. However, the impact of growth might decline as countries get richer, and richer countries are likely to make more rapid progress in reducing environmental impacts. Finally, there is often convergence among countries, so that countries that have relatively high levels of impacts reduce them more quickly or increase them more slowly, all else held constant.


2019 ◽  
Vol 1 (3) ◽  
pp. 71
Author(s):  
Muhammad Fajri Setia Trianto ◽  
Evi Yulia Purwanti

The economy that continues to grow has the impact of environmental damage. This study aims to prove empirically the Environmental Kuznets Curve (EKC) hypothesis by analyzing the relationship of economic growth with environmental damage as measured by GDP per capita, and CO2 emissions. The data used are secondary data in the form of data on GDP per capita, CO2 emissions, population growth, inflation, and control of corruption in 10 countries in the ASEAN region in 2002-2016. Data analysis using the Fixed Effect model. The results show that there is a relationship between economic growth and environmental damage that forms an inverted U curve. Economic growth will initially have a positive effect on environmental damage so that at a point of economic growth negatively affects environmental damage. By adding control variables: population growth, inflation and corruption, inflation and corruption positively impact environmental damage, while population negatively affect environmental damage.


2020 ◽  
Vol 31 (8) ◽  
pp. 1498-1514 ◽  
Author(s):  
Bingjie Xu ◽  
Ruoyu Zhong ◽  
Hui Qiao

Internationally, biofuel energy as a renewable energy source has been increasingly appreciated by various industries. The benefits of biofuel energy for environmental protection and global climate change cannot be denied. Hence, this paper examines the nexus among economic growth, biofuel consumption, urbanization rate, and CO2 emissions in seven selected Group of Twenty countries (G20) over 2001–2017. The results of fully modified ordinary least squares suggest that the environmental Kuznets curve (EKC) exists between economic growth and CO2 emissions, and the impact of biofuel consumption and the urbanization rate on CO2 emissions is negative and positive, respectively. The purpose of this paper is to investigate the nexus among economic growth, biofuel consumption, urbanization rate, and CO2 emissions. The significance of this paper is to add biofuel consumption as a new variable for a panel of seven selected Group of Twenty (G20) countries covering 2001–2017. In addition, this study put urbanization into the current environmental Kuznets curve model to validate that urbanization can increase CO2 emissions. Developing the biofuel industry can not only diminish fossil fuel energy consumption but also offer huge potential to reduce CO2 emissions.


Author(s):  
Sakshi Gambhir

The relationship between economic growth and environmental quality has been much under dispute. According to the EKC (Environmental Kuznets Curve) hypothesis, environmental damage increases in the early stages of economic growth, but diminishes once nations reach higher levels of income. While the notion EKC is well established, there is controversy about its shape, incidence and determinants. In this paper, we model EKC with the variables of GDP and CO2 emissions (aggregate and per capita) using alternative model specifications to bridge the gap between conventional and modern EKC literature. We also place the theoretical construct of EKC into a policy-oriented framework by incorporating the impact of four global policy periods namely, liberalisation, globalisation, world recovery and global financial crisis. We substantiate a cubic form of EKC in the Indian context for the time period 1991 to 2014. With aggregate CO2 emissions as the dependent variable, the linear, quadratic and cubic terms are all significant with the expected signs, which confirm an N-shaped EKC for India. Even with per capita emissions as the dependent variable, existence of an N-shaped EKC is established. In this case however, evidence on the cubic term is rather weak which points towards the difference in socio-psychological factors that influence the revival of upturn in the case of India. The policy period analysis does not show any distinct results, which could be due to contradictory effects on different variables and volatility in these variables.


2018 ◽  
Vol 2 (2) ◽  
pp. 65-75
Author(s):  
Achmad Rifa'i ◽  
Nurvita Retno Dewi

The environment is often regarded as affected by the economic activity. Many studies have attempted to prove the Environmental Kuznets Curve (EKC) phenomenon, but few aimed to look beyond the impact of environmental quality and its contribution to the economic growth. This research aims to fill the gap of the literature. ASEAN is a region which is currently trying to maximize the potential of its natural resources to increase the economy of the region. With the abundance of existing natural resources, it is expected to make the region as a new economic source in the world. Panel data from 10 countries from 1994-2015 was employed to look at the environmental impacts of the ASEAN region on economic growth. Empirical results indicated that population, forest area, and CO2 emissions significantly affect economic growth. Nevertheless, it is suggested to be more prudent in using existing resources to maintain the stability of the economic growth without sacrificing the environment that has the very essential importance in the human life.


2018 ◽  
Vol 25 (27) ◽  
pp. 27283-27296 ◽  
Author(s):  
António Cardoso Marques ◽  
José Alberto Fuinhas ◽  
Patrícia Alexandra Leal

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.


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