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

Author(s):  
Nguyen Van Chien

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.

2021 ◽  
Vol 14 (3) ◽  
pp. 93
Author(s):  
Jihuan Zhang

China is the largest CO2 emitter in the world, and it shared 28% of the global CO2 emissions in 2017. According to the Paris Agreement, it is estimated that China’s CO2 emissions will reach its peak by 2030. However, whether or not the CO2 emissions in China will rise again from its peak is still unknown. If the emission level continues to increase, the Chinese policymakers might have to introduce a severe CO2 reduction policy. The aim of this paper is to conduct an empirical analysis on the long-standing relationship between CO2 emissions and income while controlling energy consumption, trade openness, and urbanization. The autoregressive distributed lag (ARDL) model and the bounds test were adopted in evaluating the validity of the Environmental Kuznets Curve (EKC) hypothesis. The quantile regression was also used as an inference approach. The study reveals two major findings: first, instead of the conventional U-shaped EKC hypothesis, there is the N-shaped relationship between CO2 emissions and real gross domestic product (GDP) per capita in the long run. Second, a positive effect of energy consumption and a negative effect of urbanization on CO2 emissions, in the long run, are also estimated. Quantitatively, if energy consumption rises by 1%, then CO2 emissions will increase by 0.9% in the long run. Therefore, the findings suggest that a breakthrough, in terms of policymaking and energy innovation under China’s specific socioeconomic and political circumstances, are required for future decades.


2018 ◽  
Vol 4 (3) ◽  
pp. 249-265 ◽  
Author(s):  
Natalya Ketenci

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.


2019 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Wahid Murad ◽  
Abu Hanifa Md. Noman ◽  
Ilhan Ozturk

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.


2014 ◽  
Vol 962-965 ◽  
pp. 1670-1675 ◽  
Author(s):  
Qing Zou ◽  
Xun Chen ◽  
Jun Na Lv

For discussing the shape, turning point and influencing factors of Environmental Kuznets Curve (EKC) for Chinese CO2 emissions, by using data for 1960-2009, the dynamic relationship between income, other affecting factors and CO2 emissions was studied utilizing the Auto Regressive Distributed Lag - Error Correction Model (ARDL-ECM) and boundary test methodology. The results suggest the existence of cointegration relationship among variables and presence of an inverted-U shape relationship in both short and long-run, thus supporting the EKC hypothesis. At present China has not surpassed the curve’s turning point. Energy intensity is key influencing factor for CO2 emissions. Industry structure is positively correlated with CO2 emissions. However, trade openness has little influence on it. The short-run environmental negative effect of urbanization and long-run positive effect of population density are both significant, the regression coefficient of energy consumption structure is positive in long-run but negative in short-run.


Energies ◽  
2018 ◽  
Vol 11 (12) ◽  
pp. 3462 ◽  
Author(s):  
Haider Mahmood ◽  
Abdullatif Alrasheed ◽  
Maham Furqan

The study is aimed to scrutinize the presence of Environmental Kuznets Curve (EKC) hypothesis in Saudi Arabia by analyzing a period of 1971–2014. Asymmetrical impacts of Financial Market Development (FMD) and energy consumption per capita have also been tested on CO2 emissions per capita. The estimates buoyed the long and short-run relationships in the hypothesized model, and EKC is found to be true in terms of the relationship between income and pollution. Asymmetrical effects of FMD in the long run and asymmetrical effects of energy consumption per capita in the long and short run are presented on the CO2 emissions per capita. A decreasing FMD is found responsible for environmental degradation, and decreasing energy consumption per capita is found helpful in controlling CO2 emissions. The tested effect of the financial crisis is found insignificant on CO2 emissions.


Energies ◽  
2019 ◽  
Vol 12 (6) ◽  
pp. 1076 ◽  
Author(s):  
Tijjani Adamu ◽  
Ihtisham Haq ◽  
Muhammad Shafiq

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.


2021 ◽  
Author(s):  
Komal Kanwar Shekhawat ◽  
Arvind Kumar Yadav ◽  
Md Sahnewaz Sanu ◽  
Pushp Kumar

Abstract To devise an appropriate climate policy dealing with environmental degradation, reliable measurement of CO2 emissions is essential. In the recent past, most researchers have utilized production-based emissions in their studies, ignoring the important role of consumption-based emissions in environmental degradation. Therefore, the present research examines the drivers of consumption-based CO2 emissions in SAARC nations over the period 1990 to 2018. By employing traditional and second-generation panel cointegration methodologies, the study, more specifically, explores the link between consumption-based CO2 emissions and its four macroeconomic determinates, namely, GDP growth, energy consumption, FDI, and trade openness (measured by Composite Trade Share Index). The study also applies the FMLOS and DOLS techniques for calculating the long-run elasticities of regressors with respect to the explained variable. The results establish a cointegration relationship between the variables and validate the “EKC hypothesis” for the SAARC region. It is also found that in the long run, as expected, energy consumption enhances the consumption-based CO2 emissions while FDI and trade openness improve the environmental quality by plummeting emissions. Most importantly, the study rejects the “pollution-haven hypothesis” for the SAARC region based on the negative and statistically significant coefficient of FDI. Lastly, based on the results, some policies are recommended for the abatement of environmental degradation in SAARC countries. As the SAARC nations rely heavily on fossil-based energy, it is suggestive for these economies to enhance the level of energy efficiency and augment the share of renewable energy sources in the energy-mix. Furthermore, the policy-designers in this region should encourage trade openness and liberalize inward FDI for containing consumption-based emissions.


2019 ◽  
Vol 11 (12) ◽  
pp. 3295 ◽  
Author(s):  
Haider Mahmood ◽  
Nabil Maalel ◽  
Olfa Zarrad

We investigated the asymmetrical effects of trade openness on CO2 emissions and the environmental Kuznets curve (EKC) hypothesis in Tunisia during the period 1971–2014. The integration analysis suggests a mixed order of integration and the cointegration analysis corroborates the long- and short-run relationships. The EKC was proved true with a turning point gross domestic product (GDP) of approximately 292.335 billion constant US dollars, and Tunisia was found at the first phase of EKC. Moreover, we corroborate the asymmetrical effects of trade openness on CO2 emissions. The effects of increasing and decreasing trade openness are found to be positive and insignificant on CO2 emissions, respectively. The pollution haven hypothesis is found to be true in Tunisia, along with negative environmental effects associated with increasing foreign trade.


2021 ◽  
Vol 13 (7) ◽  
pp. 3649
Author(s):  
Mohamed Ouédraogo ◽  
Daiyan Peng ◽  
Xi Chen ◽  
Shujahat Haider Hashmi ◽  
Mamoudou Ibrahima Sall

This paper examines the environmental Kuznets curve (EKC) theory, augmenting the role of oil resources and energy consumption in carbon dioxide (CO2) emissions using the annual data of 11 African oil-producing countries from 1980 to 2014. We apply advanced panel cointegration and panel autoregressive distributive lag (ARDL) techniques coupled with Granger non-causality analysis to account for cross-sectional dependence and heterogeneity. The results of the augmented mean group (AMG) reveal that oil resources abundance degrades the environmental quality in Angola while abating CO2 emissions in Algeria, Gabon, Morocco, and Nigeria. Contrarily, energy consumption escalates pollution in the Congo Democratic Republic (COD), Côte d’Ivoire (CIV), Gabon, Morocco, and Tunisia. Our findings support the EKC hypothesis only in Cameroon, CIV, and Nigeria while exhibiting a U-shaped curve in Algeria and Morocco. Causality analysis unveils that oil resources Granger cause energy consumption, suggesting the balance between renewable and non-renewable energy sources. The current study has important policy implications for promoting green technology, economic diversification, service sector, and green investments.


2013 ◽  
Vol 9 (2) ◽  
Author(s):  
OLUWOLE OWOYE ◽  
OLUGBENGA A. ONAFOWORA

This paper examines the long-run and dynamic temporal relationships between economic growth, energy consumption, population density, trade openness, and carbon dioxide    (CO2) emissions in Brazil, China, Egypt, Japan, Mexico, Nigeria, South Korea, and South Africa based on the environment Kuznets curve (EKC) hypothesis. We employ the ARDL Bounds test to cointegration and CUSUM and CUSUMSQ tests to ensure long-run cointegration and parameter stability.  The estimated results show that the inverted U-shaped EKC hypothesis holds in Japan and South Korea.  In the other six countries, the long-run relationship between economic growth and CO2 emissions follows an N-shaped trajectory and the estimated turning points are much higher than the sample mean. In addition, the results indicate that energy consumption Granger-causes both CO2 emissions and economic growth in all the countries.  An important implication of our findings is that it would be ill-advised for the policy decision makers to adopt the EKC postulate as the conceptual basis for policies favoring economic growth unconditionally. A wide range of policy initiatives that would induce increased demand for better environment quality and its sustainability should be explored in tandem with measures to spur economic growth.


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