scholarly journals ECONOMIC GROWTH VERSUS ENVIRONMENTAL SUSTAINABILITY: AN ANALYSIS OF ENVIRONMENTAL KUZNETS CURVE IN CASE OF INDIA

2021 ◽  
pp. 13-21
Author(s):  
Dr. Sumedha Pandey
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
World War Ii ◽  
Environmental Degradation ◽  
Environmental Sustainability ◽  
Environmental Kuznets Curve ◽  
Adam Smith ◽  
Kuznets Curve ◽  
Long Run ◽  
The Impact

Economic growth became the buzzword for planners and policymakers after the great devastation of World War II. Every country, rich and poor was planning to achieve higher growth rate to reach the take-off stage (Rostow). In 1950s and early 1960s, economic growth and economic development were considered synonymous but later on, economic development acquired a wider meaning i.e., growth was associated with increase in goods and services while economic development included such important factors like education, health which impact quality of life. But even then, greater emphasis was on economic growth because right from Adam Smith to modern economists, growth was the basic condition of economic welfare. To achieve an ever-increasing growth, resources (natural and man-made) are/were continuously being exploited. But the question that became important here was whether this growth or in wider sense development, sustainable? With time, the form of resource use has changed from usage to exploitation negatively impacting the environment. Can this growth process be allowed at the cost of environmental degradation? So, concerns have been raised from time to time to address this issue. In this context, this paper analyses the impact of rising per capita income, population density and construction activities on carbon emissions (a proxy of environmental degradation) to check the applicability of Environmental Kuznets Curve (EKC) in case of India. Results suggest a positive significant relation between the dependent variable and the independent variables, indicating towards the applicability of EKC in short-run in case of India, but not in the long-run. KEYWORDS: Economic growth, sustainable development, Environmental Kuznets Curve, environmental degradation, carbon emission

Income inequality and CO2 emissions: Empirical evidence from Turkey

2018 ◽  
Vol 30 (3) ◽  
pp. 444-461 ◽  
Author(s):  
Caner Demir ◽  
Raif Cergibozan ◽  
Adem Gök
Keyword(s):  
Income Inequality ◽  
Environmental Degradation ◽  
Environmental Quality ◽  
Environmental Kuznets Curve ◽  
Kuznets Curve ◽  
Aggregate Consumption ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Impact

The aim of the study is to investigate the impact of income inequality on environmental quality in Turkey within the Environmental Kuznets Curve framework. In order to observe the short-run and long-run effects of income inequality on environmental quality, an autoregressive distributed lag bounds test on CO2 emission has been employed for the period 1963–2011 of Turkey. The results of the analysis reveal that there is a negative association between CO2 emission level and income inequality, which implies that increasing income inequality reduces environmental degradation in Turkey. Hence, a greater inequality in the society leads to less aggregate consumption in the economy due to lower propensity to emit in the richer households resulting in better environmental quality. The findings confirm an argument in the existing literature, which suggests that for developing countries, until a certain level of development, environmental degradation increases as income inequality in the society decreases. The results also confirm the Environmental Kuznets Curve hypothesis.

scholarly journals 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 ◽  
2019 ◽  
Vol 12 (6) ◽  
pp. 1076 ◽  
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.

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

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.

scholarly journals The impact of official development assistance on the economic growth and carbon dioxide mitigation for the recipient countries

2020 ◽  
Vol 27 (33) ◽  
pp. 41776-41786
Author(s):  
Sue Kyoung Lee ◽  
Gayoung Choi ◽  
Eunmi Lee ◽  
Taeyoung Jin
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Environmental Degradation ◽  
Development Assistance ◽  
Simultaneous Equation ◽  
Official Development Assistance ◽  
Kuznets Curve ◽  
Direct Model ◽  
The Impact ◽  
The Relationship

Abstract The purpose of this study is to investigate the relationship between official development assistance (ODA) on CO2 emissions based on both direct and indirect frameworks, using the annual panel data of 30 recipient countries of Korea from 1993 to 2017. It employs a modified impact, population, affluence, and technology (IPAT) model and a simultaneous equation framework for the direct model and indirect model, respectively. The empirical results suggest that ODA has both a direct and an indirect mitigation impact in the recipient countries. Compared to the direct impact, a small indirect mitigation impact of ODA on CO2 emissions is derived. However, the estimation results of the environmental Kuznets curve (EKC) equation imply that economic growth has the potential of mitigating the environmental degradation when the economic development in recipient countries of Korea reaches a certain level. Therefore, the bilateral cooperation, through ODA and the supportive policy, should make an effort to promote economic development and mitigation of environmental degradation in developing countries.

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.

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

Energies ◽  
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.

scholarly journals Pembangunan Ekonomi, Industrialisasi, dan Degradasi Lingkungan Hidup di Indonesia Tahun 1967-2013: Enviromental Kuznet Curve Model

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Andi Kurniawan
Keyword(s):  
Economic Development ◽  
Error Correction ◽  
Co2 Emissions ◽  
Environmental Degradation ◽  
Environmental Damage ◽  
Kuznets Curve ◽  
Short Term ◽  
Error Correction Mechanism ◽  
The Impact

Penelitian ini bertujuan mengidentifikasi dampak pembangunan ekonomi dan proses industrialisasi terhadap Degradasi lingkungan di Indonesia baik dalam jangka panjang maupun jangka pendek. Untuk melihat pengaruh pembangunan ekonomi dan industrialisasi terhadap penurunan kualitas lingkungan di Indonesia, penelitian ini menggunakan model Enviromental Kuznet Curve (EKC) dan dengan model Error Correction Mechanism (ECM). Hasil penelitian menjelaskan bahwa dalam jangka panjang peningkatan pendapatan masyarakat dan industrilasasi berpengaruh positif  secara linier terhadap peningkatan emisi C02 dan pada tingkat pendapatan tertentu terjadi proses perbaikan lingkungan yang ditandai dengan penurunan emisi CO2. Namun dalam jangka pendek hanya industrialisasi yeng membrikan pengaruh pada peningkatan emisi CO2. Diharapkan adanya konsesus bersama antara pemerintah dan pelaku usaha (industri) dalam mengurangi dampak pencemaran serta adanya peningkatan kesadaran masyakat dalam membantu mengurangi kerusakan lingkungan hidup.   Abstract This study aims to identify the impact of economic development and industrialization to  the environmental degradation in Indonesia, both in the long term and short term. To see the effect of economic development and industrialization to the environmental degradation in Indonesia, this research was  used Environmental Kuznets Curve (EKC) model and the model of  Error Correction Mechanism (ECM). The results of the study explain that in the long term, improvement of people's income and industrialization have positive effect linearly with the increase in C02 emissions and at a certain income level there is a process improvement environment characterized by a decrease in CO2 emissions. But in the short term only industrialization which influence on the increase of CO2 emissions Expected that the consensus between the government and businesses (industri) in reducing the impact of pollution and the increased awareness of society in helping to reduce environmental damage.    

The impact of financial development, economic growth and energy consumption on environmental degradation

2015 ◽  
Vol 26 (5) ◽  
pp. 666-682 ◽  
Author(s):  
Madhu Sehrawat ◽  
A K Giri ◽  
Geetilaxmi Mohapatra
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Degradation ◽  
Series Data ◽  
Development Economic ◽  
Content Type ◽  
Indian Economy ◽  
Long Run ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of financial development, economic growth and energy consumption on environment degradation for Indian economy by using the time series data for the period 1971-2011. Design/methodology/approach – The stationary properties of the variables are checked by ADF, DF-GLS, PP and Ng-Perron unit root tests. The long-run relationship is examined by implementing the Autoregressive Distributed Lag bounds testing approach to co-integration and error correction method (ECM) is applied to examine the short-run dynamics. The direction of the causality is checked by VECM framework and variance decomposition is used to predict exogenous shocks of the variables. Findings – The empirical evidence confirms the existence of long-run relationship among the variables. Financial development appears to increase environmental degradation in India. The main contributors to environmental degradation are: economic growth, energy consumption financial development and urbanization. The results also lend support to the existence of environmental Kuznets curves for Indian economy. Research limitations/implications – The present study suggests that environmental degradation can be reduced at the cost of economic growth or energy efficient technologies should be encouraged to enhance the domestic product with the help of financial sector by improving environmental friendly technologies from advanced economies. Originality/value – This paper proposes to make a contribution to the existing literature through examining the relationship between financial development and environmental degradation in Indian economy during 1971-2011 by employing modern econometric techniques.

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