scholarly journals Assessment on the Applicability of Environmental Kuznets Curve Hypothesis on the Macroeconomic Factors Driving Carbon Dioxide Emissions in the Philippines

2022 ◽  
Vol 4 (1) ◽  
pp. 76-92
Author(s):  
Peña, Elij Maridaine S ◽  
Jon Salvador Reyes ◽  
Gonzalez, Andrew N.

Since there is a lack of empirical literature in the Philippines that focuses on studying the validity of the Environmental Kuznets Curve Hypothesis, this study aims to build on succeeding studies testing the validity of the EKC hypothesis in the country. In the current study, we empirically investigate the long-run relationship between the annual Philippine Carbon Dioxide (CO2) emissions as the proxy variable for Environmental Degradation, Gross Domestic Product per capita, net inflows of Foreign Direct Investment, Renewable Energy per capita, specifically for the period of 1981 - 2019. This paper also observed the Johansen Cointegration results in critically assessing whether the variables were conclusive to test in the long-run measure. For that reason, we investigated the validity of the EKC hypothesis by utilizing the ARDL long bound approach. Thus, our results revealed that a long-run relationship exists, but interestingly, the Environmental Kuznets Curve Hypothesis does not exist in the Philippines.  

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


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.


Author(s):  
Cengiz Aytun ◽  
Cemil Serhat Akın ◽  
Neşe Algan

Today, especially in developing countries, environmental pollution threatens human life. Environmental quality is one of the most important sources of human welfare. Therefore, it is becoming increasingly important to understand the relationship between environmental degradation, income and energy consumption. The aim of this study is to investigate the nature of relationships among the carbon dioxide emissions, economic growth and energy consumption for emerging economies. For this purpose, Environmental Kuznets Curve hypothesis have been tested for 10 emerging economies for the years from 1980 to 2010. Data were brought together from the World Bank development indicators database. In order to test of Environmental Kuznets Curve hypothesis IPS panel unit root, Pedroni panel cointegration and FMOLS estimation methods are used. Results indicate that energy consumption has a positive and significant effect on carbon dioxide emissions. Results indicate that energy consumption has a positive and significant effect on carbon dioxide emissions. The findings also show that per capita GDP follows an inverted U-shape pattern associated with the Environmental Kuznets Curve hypothesis. This situation validates the policies which assert that environmental pollution decreases with income growth.


2021 ◽  
Vol 4 (1) ◽  
pp. 57-71
Author(s):  
Emmanuel O. Okon

Abstract The environmental Kuznets curve is a relationship between various indicators of environmental degradation and income per capita. Empirical studies have produced mixed results concerning Environmental Kuznets Curve hypothesis given the different indicators of environmental degradation used. But there has not been any validation of Environmental Kuznets Curve for powerful greenhouse gases like fluorinated gases that have a global warming effect up to 23 000 times greater than carbon dioxide (CO2), and their emissions are rising strongly. This paper aimed to test the applicability of the Environmental Kuznets Curve in Nigeria from 1970-2018 by deploying the Auto Regressive Distributed Lag methodology, the bounds test shows that there’s a long-run equilibrium relationship between Gross Domestic Product per capita, square of Gross Domestic Product per capita, alternative and nuclear energy, combustible renewable and waste, and adjusted savings: net forest depletion. Nonetheless, the results do not support the Environmental Kuznets Curve hypothesis both in the short-run and long-run and inverted U-shaped relationship was not found between fluorinated greenhouse gas emissions and growth in Nigeria. However, adopting fluorinated gas recycling and destruction processes, optimizing production to minimize emissions, and replacing these gases with alternatives are suggested for industrial users.


2016 ◽  
Vol 4 (4) ◽  
pp. 1-12 ◽  
Author(s):  
Daniel Kwabena Twerefou ◽  
Frank Adusah-Poku ◽  
William Bekoe

AbstractThe Environmental Kuznets Curve (EKC) hypothesis postulates an inverted U-shaped relationship between different pollutants and economic growth. In Ghana, as in many other developing countries, there exist scanty studies that confirm or otherwise the EKC hypothesis with regards to CO2 emissions as well as the factors that drive CO2 emissions. This work aims to bridge this knowledge gap by addressing these two major questions using data from 1970 to 2010 and the Auto Regressive Distributed Lag (ARDL) Bounds Testing approach. The results rather suggest a U-shaped relationship between per capita GDP and CO2 emissions per capita indicating the non-existence of the EKC hypothesis for CO2 in Ghana. This implies that further increase in per capita Gross Domestic Product (GDP) will only be associated with increase in CO2 emissions as the income per capita turning point of about $624 at constant 2000 prices occurred between 1996 and 1997. Furthermore, our results reveal energy consumption and trade openness are positive long run drivers of CO2 emissions. It is therefore recommended that the enhancement of trade liberalization policies should ensure the use of cleaner technologies and products while investment in cleaner energy alternatives could help reduce CO2 emissions. We also recommend the implementation of the Low Carbon Development Strategy which integrates development and climate change mitigation actions.


Author(s):  
Emmanuel O. Okon

The proposed inverted U-type relationship between environmental degradation and per capita income under EKC hypothesis has been examined in this paper for Nigeria over the period 1970-2019. Using the ARDL bounds testing approach to cointegration and ECM (OLS Approach), the EKC hypothesis does not seem to hold both in short-run and long-run. The estimated coefficients of the long-run relationship shows that LOGCO2(-1) is the only statistically significant variable explaining environmental degradation while the short run results indicate that D(LOGCO2(-1)) is the most significant variable in explaining environmental degradation in Nigeria followed by D(LOGIND(-1)).


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.


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