Testing the Energy-Environmental Kuznets Curve Hypothesis in the Renewable and Nonrenewable Energy Consumption Models in Egypt

The Environmental Kuznets Curve (EKC) association between income and pollution emissions proxies has been extensively tested in the environmental literature. However, testing of the energy-EKC is scanty. This present research examined the energy–EKC in the cubic relationship of economic growth and different renewable and nonrenewable energy proxies in Egypt from 1965–2019. In the long run, we corroborate the N-shaped relationships in the case of primary energy, oil, and coal consumption models, and confirm the long run energy–EKC association in these energy proxies. Moreover, we find turning points of the N-curve for these energy sources in 1998, 2000, and 1979–2005, in primary energy, oil, and coal consumption models, respectively. Hence, economic growth is responsible for increasing nonrenewable energy consumption and has environmental consequences in Egypt. In the short run, we find N-shaped relationships in the case of primary energy, oil, and coal consumption. Further, we find an inverted U-shaped relationship in the case of natural gas consumption. In addition, we corroborate an inverted N-shaped relationship in the case of hydroelectricity consumption, a renewable energy source. Hence, we confirm the short-run energy–EKC relationship in all investigated renewable and nonrenewable energy proxies.

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Analyzing the Impact of Energy, Export Variety, and FDI on Environmental Degradation in the Context of Environmental Kuznets Curve Hypothesis: A Case Study of India

Energies ◽

10.3390/en12061076 ◽

2019 ◽

Vol 12 (6) ◽

pp. 1076 ◽

Cited By ~ 9

Author(s):

Tijjani Adamu ◽

Ihtisham Haq ◽

Muhammad Shafiq

Keyword(s):

Energy Consumption ◽

Environmental Degradation ◽

Carbon Emissions ◽

Environmental Kuznets Curve ◽

Kuznets Curve ◽

Ekc Hypothesis ◽

Long Run ◽

Export Variety ◽

Short Run ◽

The Impact

The economic size of the Indian economy and its status as one of the major global emitters of carbon emissions makes the country a good place to study the determinants of environmental degradation in India. The study aims at analyzing the impact of energy, export variety, and foreign direct investment (FDI) on environmental degradation in India in the context of environmental Kuznets curve (EKC) hypothesis. The long run relationship was found between variables of the study through a cointegration test, whereas long run estimates were obtained through cointegration and dynamic ordinary least squares (DOLS). Results of the study reveal that energy consumption, export variety, FDI, and income positively contributed to environmental degradation in India. Results also unveil that the EKC hypothesis does not exist in India. Causality analyses document unidirectional causality from income and FDI to environmental degradation, and bidirectional causality was witnessed between energy consumption and environmental degradation and between export variety and environmental degradation in the long run. The long run and the short run causality highlight that India has to forego the short run economic growth in order to improve its environmental quality and reduce global carbon emissions; however, it will not affect its long term economic development process.

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Investigating the Presence of Environmental Kuznets Curve Hypothesis in India and China: An Autoregressive Distributive Lag Approach

Jindal Journal of Business Research ◽

10.1177/2278682119880510 ◽

2019 ◽

Vol 8 (2) ◽

pp. 194-210

Author(s):

Ritu Rani ◽

Naresh Kumar

Keyword(s):

Economic Growth ◽

Environmental Degradation ◽

Environmental Kuznets Curve ◽

Kuznets Curve ◽

Annual Growth Rate ◽

Ekc Hypothesis ◽

Causality Test ◽

Long Run ◽

Short Run ◽

India And China

The Environmental Kuznets Curve (EKC) hypothesis advocates a reversed U-shaped association between different pollutants and per capita income. EKC postulates that speedy growth certainly results in environmental degradation due to glut use of natural resources and emission of pollutants. The study used carbon dioxide (CO2) emissions, economic growth, energy consumption, and the annual growth rate of population to investigate the EKC hypothesis in India and China for the period of 1971–2013. Furthermore, to explore the long-run and short-run relationship among competing variables, the autoregressive distributed lag model (ARDL) is used. Granger causality test is used to investigate the long-run and short-run causality between variables under study. The results support the EKC hypothesis in India and China, in both long-run and short-run, and inverse U-shaped association is found between CO2 emission and economic growth. Unidirectional causality seen in both countries in terms of economic growth and CO2 emissions. In addition, the coefficient of economic growth in a short-run model provides the evidence that there has been a gradual decline in environmental degradation (downward sloping of EKC) and the quality of the environment is gradually improving in China. Based on the findings, the study suggests that environmental policymakers, especially in India, should seriously address the issue of CO2 emissions as it has a tendency to move faster in the coming years.

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The environmental Kuznets curve in the case of Russia

Russian Journal of Economics ◽

10.3897/j.ruje.4.28482 ◽

2018 ◽

Vol 4 (3) ◽

pp. 249-265 ◽

Cited By ~ 2

Author(s):

Natalya Ketenci

Keyword(s):

Energy Consumption ◽

Carbon Emissions ◽

Environmental Kuznets Curve ◽

Energy Use ◽

Trade Openness ◽

Real Income ◽

Kuznets Curve ◽

Causality Test ◽

Long Run ◽

Short Run

This study explores the relationships between carbon emissions and their main determinants such as energy consumption, real income, international trade, level of education and level of urbanization in the Russian Federation, employing data for the period 1991–2016. Support for the environmental Kuznets curve hypothesis is found in this study, stating that environment pollution decreases in Russia after income achieves a certain threshold. The ARDL bounds test is employed in order to estimate short-run and long-run relationships in the estimated model. Energy consumption, real income, education and urbanization levels are found to be significant determinants of carbon emissions, while trade openness does not have an impact. The Granger causality test indicates two-way relationships between carbon emissions and energy use, real income and education. Only a single one-way causality runs from carbon emission to trade and no causality was found between carbon emissions and level of urbanization.

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Relationships among Carbon Emissions, Economic Growth, Energy Consumption and Population Growth: Testing Environmental Kuznets Curve Hypothesis for Brazil, China, India and Indonesia

10.31235/osf.io/8hq6z ◽

2019 ◽

Cited By ~ 1

Author(s):

Md. Mahmudul Alam ◽

Wahid Murad ◽

Abu Hanifa Md. Noman ◽

Ilhan Ozturk

Keyword(s):

Time Series ◽

Energy Consumption ◽

Population Growth ◽

Co2 Emissions ◽

Environmental Kuznets Curve ◽

Time Series Data ◽

Series Data ◽

Kuznets Curve ◽

Long Run ◽

Short Run

This study examines the impacts of income, energy consumption and population growth on CO2 emissions by employing an annual time series data for the period 1970-2012 for India, Indonesia, China, and Brazil. The study used the Autoregressive Distributed Lag (ARDL) bounds test approach considering both the linear and non-linear assumptions for related time series data for the top CO2 emitter emerging countries in both the short run and long run. The results show that CO2 emissions have increased statistically significantly with increases in income and energy consumption in all four countries. While the relationship between CO2 emissions and population growth was found to be statistically significant for India and Brazil, it has been statistically insignificant for China and Indonesia in both the short run and long run. Also, empirical observations from the testing of environmental Kuznets curve (EKC) hypothesis imply that in the cases of Brazil, China and Indonesia, CO2 emissions will decrease over the time when income increases. So based on the EKC findings, it can be argued that these three countries should not take any actions or policies, which might have conservative impacts on income, in order to reduce their CO2 emissions. But in the case of India, where CO2 emissions and income were found to have a positive relationship, an increase in income over the time will not reduce CO2 emissions in the country.

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Energy Consumption, Income, Trading Openness, and Environmental Pollution: Testing Environmental Kuznets Curve Hypothesis

Journal of Southwest Jiaotong University ◽

10.35741/issn.0258-2724.55.1.49 ◽

2020 ◽

Vol 55 (1) ◽

Author(s):

Nguyen Van Chien

Keyword(s):

Energy Consumption ◽

Environmental Pollution ◽

Co2 Emissions ◽

Environmental Kuznets Curve ◽

Renewable Energy Sources ◽

Trade Openness ◽

Energy Sources ◽

Kuznets Curve ◽

Long Run ◽

Short Run

The purpose of this study is to examine the effects of energy consumption, economic growth, and trade openness on environmental pollution in a developing country, especially in the case of Vietnam. The study was conducted on the basis of time-series data collected in the period of time between the years 1990 and 2014. By a method of autoregressive distributed lag and testing the hypothesis of the environmental Kuznets curve, our result demonstrated that environmental Kuznets curve could be found in both the long run and short run. There existed an inverted U-shaped relationship between different pollutants and per capita income. Further, energy consumption could positively affect carbon dioxide (CO2) emissions in the short run, but negatively could affect CO2 emissions in the long run because of transformation from non-renewable energy sources to renewable energy sources. In addition, environmental pollution converged on its long-run equilibrium by at least 29.4% with the speed adjustment via the channel of income, energy consumption, and trade openness. In terms of trade openness, the country has a positive and significant effect on CO2 emissions in both the long run and short run.

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Role of Economic Growth, Financial Development, Trade, Energy and FDI in Environmental Kuznets Curve for Lithuania: Evidence from ARDL Bounds Testing Approach

Engineering Economics ◽

10.5755/j01.ee.31.1.22087 ◽

2020 ◽

Vol 31 (1) ◽

pp. 39-49 ◽

Cited By ~ 4

Author(s):

Habib-ur Rahman ◽

Ahmad Ghazali ◽

Ghulam Ali Bhatti ◽

Safdar Ullah Khan

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Financial Development ◽

Environmental Kuznets Curve ◽

Series Data ◽

Kuznets Curve ◽

Bounds Testing ◽

Long Run ◽

Ardl Bounds Testing

This paper examines the long-run relationship between carbon dioxide (CO2) emission and economic growth, financial development, trade, energy consumption, and foreign direct investment in the case of Lithuania by employing time series data of 1989-2018. In particular, this paper aims to test whether the Environmental Kuznets Curve (EKC) relationship for economic growth and financial development holds or not. The autoregressive distributed lag (ARDL) bounds testing procedure is employed for the empirical analysis. The results validate the existence of EKC in the long-run as well as in the short-run since there is an inverted U-shaped relation between CO2 emissions and economic growth. Conversely, we could not validate the EKC relationship between CO2 emissions and financial development. Trade and energy consumption are other significant determinants of CO2 emissions. The causality analysis results show that unidirectional causality runs from economic growth to CO2 emissions and trade to CO2 emissions. The validity of the EKC hypothesis indicates that Lithuania can achieve short-term, medium-term, and long-term climate change mitigation and adoption goals and objectives approved by the Parliament of the Republic of Lithuania without deteriorating its economic growth.

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The Moderating Role of Employment in an Environmental Kuznets Curve Framework Revisited in G7 Countries

Indonesian Journal of Sustainability Accounting and Management ◽

10.28992/ijsam.v4i2.283 ◽

2020 ◽

Vol 4 (2) ◽

pp. 241

Author(s):

Bright Akwasi Gyamfi ◽

Murad A. Bein ◽

Ilhan Ozturk ◽

Festus Victor Bekun

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Environmental Kuznets Curve ◽

Anthropogenic Activities ◽

Pollutant Emission ◽

Kuznets Curve ◽

G7 Countries ◽

Long Run ◽

Moderating Role

Anthropogenic activities have resulted in environmental concerns due to the global consciousness for mitigating climate change issues. This awareness is emphasized in the sustainable development goals contained in the seventh and 13th targets. The study investigates the nexus between energy and growth while considering the moderating role of employment and its interaction with energy consumption in G7 countries for the period of 1980–2018. To achieve this objective, a carbon-income function is fitted to ameliorate the problems related to omitted variable bias. Empirical results indicate that all outlined variables are cointegrated over the investigated period, as reported by the Kao cointegration test. The study further validates the environmental Kuznets curve (EKC) hypothesis in the short-run. With emphasis on economic growth relative to environmental quality while in the long run, there is no statistical evidence in support of the EKC phenomenon. Furthermore, a 1% increase in energy consumption increases pollutant emission in the long run by 3.80%. Similarly, a positive elastic relationship is observed between trade and environmental degradation. This outcome is demonstrated in the causality results, which reveal a one-way causality running from trade to pollutant emission. These findings provide insights that can help policy formulations, including decoupling economic growth from pollutant emission and the need to adopt cleaner and eco-friendly technologies.

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Validating and Forecasting Carbon Emissions in the Framework of the Environmental Kuznets Curve: The Case of Vietnam

Energies ◽

10.3390/en14113144 ◽

2021 ◽

Vol 14 (11) ◽

pp. 3144

Author(s):

Anh-Tu Nguyen ◽

Shih-Hao Lu ◽

Phuc Thanh Thien Nguyen

Keyword(s):

Economic Growth ◽

Carbon Dioxide ◽

Energy Consumption ◽

Carbon Dioxide Emissions ◽

Environmental Kuznets Curve ◽

Back Propagation ◽

Kuznets Curve ◽

Causality Test ◽

Distributed Lag ◽

Long Run

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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Economic Development, CO2 Emissions and Energy Use Nexus-Evidence from the Danube Region Countries

Energies ◽

10.3390/en14113165 ◽

2021 ◽

Vol 14 (11) ◽

pp. 3165

Author(s):

Eva Litavcová ◽

Jana Chovancová

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Carbon Emissions ◽

Bounds Testing ◽

Mutual Cooperation ◽

Long Run ◽

Short Run ◽

Danube Region ◽

The Impact

The aim of this study is to examine the empirical cointegration, long-run and short-run dynamics and causal relationships between carbon emissions, energy consumption and economic growth in 14 Danube region countries over the period of 1990–2019. The autoregressive distributed lag (ARDL) bounds testing methodology was applied for each of the examined variables as a dependent variable. Limited by the length of the time series, we excluded two countries from the analysis and obtained valid results for the others for 26 of 36 ARDL models. The ARDL bounds reliably confirmed long-run cointegration between carbon emissions, energy consumption and economic growth in Austria, Czechia, Slovakia, and Slovenia. Economic growth and energy consumption have a significant impact on carbon emissions in the long-run in all of these four countries; in the short-run, the impact of economic growth is significant in Austria. Likewise, when examining cointegration between energy consumption, carbon emissions, and economic growth in the short-run, a significant contribution of CO2 emissions on energy consumptions for seven countries was found as a result of nine valid models. The results contribute to the information base essential for making responsible and informed decisions by policymakers and other stakeholders in individual countries. Moreover, they can serve as a platform for mutual cooperation and cohesion among countries in this region.

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

Energies ◽

10.3390/en14123415 ◽

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.

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