scholarly journals Empirical evidence of sustainable development: Causality relationship between economic growth and environmental degradation in Ecuador and Latin America and The Caribbean

2021 ◽  
Vol 25 (111) ◽  
pp. 67-77
Author(s):  
Victor Quinde Rosales ◽  
Rina Bucaram Leverone ◽  
Martha Bucaram Leverone ◽  
Francisco Quinde Rosales

This article is an inductive argumentation and an empirical-analytical paradigm that evaluates the actual relationship between Gross Domestic Product (GDP) per capita and the Carbon Dioxide (CO2) in the case of Ecuador and to compare it with Latin America and the Caribbean within a period of analysis from 1960 to 2011. It was developed an Augmented Dickey-Fuller unit root (ADF), a Granger Causality Test and a Johansen Cointegration test. It was obtained a VAR model with two variables with a number of 14 lags – VAR2(14) which were tested for which were tested for causality by demonstrating a bidirectionality for Latin America and the Caribbean and a unidirectionality of GDP per capita to CO2 for the Ecuador. Keywords: economic growth, sustainable development, environmental economics. References [1]E. Urteaga, «Las teorías económicas del desarrollo sostenible,» Cuadernos de Economía, vol. 32, nº 89, pp.113-162, 2009. [2]G. Brundtland, «Our Common Future,» de Report of the World Commission on Environment and Development, 1987. [3]R. Bermejo, Del desarrollo sostenible según Brundtland a la sostenibilidad como biomimesis, Bilbao: Hegoa, 2014. [4]W. Beckerman, «Economists, scientists, and environmental catastrophe,» Oxford Economic Papers, vol. 24, nº 3, 1972. [5]G. Grossman and A. Krueger, «Economic Growth and the Environment,» The Quarterly Journal of Economics, vol. 110, nº 2, pp. 353-377, 1995. [6]J. y. A. Medina, «Ingreso y desigualdad: la Hipótesis de Kuznets en el caso boliviano,» Espacios, vol. 38, nº31, p. 23, 2017. [7]M. Ahluwalia, «Inequality, poverty and development, » Journal of Development Economics, nº 3, pp. 307-342, 1976. [8]A. y. R. D. Alesina, «Distributive politics and economic growth,» Quarterly Journal of Economics, vol. 109, nº 2, pp. 465-490, 1994. [9]R. Barro, «Inequality and growth in a panel of countries, » Journal of Economic Growth, vol. 5, nº 1, pp. 5-32, 2000. [10]M. A. Galindo, «Distribución de la renta y crecimiento económico,» de Anuario jurídico y económico escurialense, 2002, pp. 473-502. [11]A. Álvarez, «Distribución de la renta y crecimiento económico, Información Comercial Española, ICE,» Revista de economía, nº 835, pp. 95-100, 2007. [12]J. C. Núñez, «Crecimiento económico y distribución del ingreso: una perspectiva del Paraguay,» Población y Desarrollo, nº 43, pp. 54-61, 2016. [13]S. Kuznets, «Economic Growth and Income Inequality, » American Economic Review, nº 45, pp. 1-28, 1955. [14]J. A. y. C. J. Araujo, «Relación entre la desigualdad de la renta y el crecimiento económico en Brasil: 1995-2012.,» Problemas del desarrollo, vol. 46, nº 180, pp.129-150, 2015. [15]F. Correa, A. Vasco and C. Pérez, «La Curva Medioambiental de Kuznets: Evidencia Empírica para Colombia Grupo de Economía Ambiental (GEA),» Semestre Económico, vol. 8, nº 15, pp. 13-30, 2005. [16]M. Heil and T. Selden, «Carbon emissions and economic development: future trajectories based on historical experience,» Environment and Development Economics, vol. 6, nº 1, pp. 63-83, 2001. [17]D. Holtz-Eakin and T. Selden, «Stoking the fires? CO2 emissions and economic growth,» Journal of Public Economics, pp. 85-101, 1995. [18]D. STERN, «Progress on the environmental Kuznets curve?,» Environment and Development Economics, vol. 3, nº 2, pp. 173-196, 1998. [19]P. Ekins, «The Kuznets curve for the environment and economic growth: examining the evidence,» Environment and Planning, vol. 29, pp. 805-830, 1997. [20]W. Moomaw and G. Unruh, «Are Environmental Kuznets Curves Misleading us?,» de Fletcher School of Law & Diplomacy, 1997. [21]S. M. Bruyn, J. Van- Den- Bergh and J. Opschoor, «Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves,» Ecological Economics, pp. 161-175, 1998. [22]B. Friedl and M. Getzner, «Determinants of CO2 Emissions in a small open Economy,» Ecological Economics, vol. 45, nº 1, pp. 133-148, 2003. [23]T. Sheldon, «Carbon emissions and economic growth: A replication and extension,» Energy Economics, vol. 82, pp. 85-88, 2007. [24]B. Huang, M. Hwang and C. Yang, «Causal relationship between energy consumption and GDP growth revisited: A dynamic panel data approach,» Ecological Economics, vol. 67, nº 1, pp. 41-54, 2008. [25]J. He and P. Richard, «Environmental Kuznets curve for CO2 in Canada,» Ecological Economics, vol. 69, nº5, pp. 1083-1093, 2010. [26]S. Dinda, «Environmental Kuznets Curve Hypothesis: A Survey,» Ecological Economics, vol. 49, nº 4, pp. 431-455, 2004. [27]J. M. B. and  T. T. Fosten, «Dynamic misspecification in the environmental Kuznets curve: Evidence from CO2 and SO2 emissions in the United Kingdom,» Ecological Economics, vol. 76, pp. 25-33, 2012. [28]K. Ahmed, M. Shahbaz, A. Qasing and W. Long, «The linkages between deforestation, energy and growth for environmental degradation in Pakistan,» Ecological Indicators, vol. 49, pp. 95-103, 2014. [29]J. Wooldridge, Introducción a la Econometría Un Enfoque Moderno. 4ª ed., Mexico D.F.: Cengage Learning, 2010.    

1997 ◽  
Vol 2 (4) ◽  
pp. 369-381 ◽  
Author(s):  
EDWARD B. BARBIER

This short piece introduces the special issue on environmental Kuznets curves (EKC) — the hypothesized 'inverted-U' relationship between levels of environmental degradation and per capita income. Although the analysis of EKC relationships has been a relatively recent phenomenon, there is widespread interest on the part of academics in this analysis, and on the part of policymakers in the resulting implications for environment and development. The following introduction outlines the contributions to EKC analysis of the papers comprising the special issue. This is done in two ways: first, the empirical results of the special issue papers are compared with previous analyses of the EKC relationships; and second, the additional insights offered by the special issue papers on EKCs are discussed.


2021 ◽  
Vol 25 (111) ◽  
pp. 165-173
Author(s):  
Victor Quinde Rosales ◽  
Rina Bucaram Leverone ◽  
Martha Bueno Quinonez ◽  
Michelle Saldana Vargas

This article is an inductive argumentation and an empirical-analytical paradigm that evaluates the actual relationship between Gross Domestic Product (GDP) per capita and the Carbon Dioxide (CO2) in country groups of the G8 considered as developed in a period of time from 1960 to 2011. It was developed an Augmented Dickey-Fuller unit root (ADF), a Granger Causality Test and a Johansen Cointegration test. The results evidence the non-stationary of constrains in both countries. It was obtained a VAR model with two variables with a number of lags of four - VAR2 (4) to which were tested for causality by demonstrating a unidirectionality of GDP per capita to CO2. Keywords: economic growth, economic development, income distribution, environmental economics. References [1]G. Brundtland, «Our Common Future,» de Report of the World Commission on Environment and Development , 1987. [2]R. Bermejo, Del desarrollo sostenible según Brundtland a la sostenibilidad como biomimesis, Bilbao: Hegoa, 2014. [3]R. B. and. P. C. Fander Falconí, «Flacso,» 16 03 2016. [Online]. Available: https://www.flacsoandes.edu.ec/agora/62767-la-discutible-curva-de-kuznets. [Last access: 15 01 2021]. [4]E. Urteaga, «Las teorías económicas del desarrollo sostenible,» Cuadernos de Economía, vol. 32, nº 89, pp. 113-162, 2009. [5]V. K. Smith, Scarcity and Growth Reconsidered, Baltimore: The Johns Hopkins Press, 1979. [6]J. y. A. Medina, «Ingreso y desigualdad: la Hipótesis de Kuznets en el caso boliviano,» Espacios, vol. 38, nº31, p. 23, 2017. [7]M. Ahluwalia, «Inequality, poverty and development, » Journal of Development Economics, nº 3, pp. 307-342, 1976. [8]A. and R. D. Alesina, «Distributive politics and economic growth,» Quarterly Journal of Economics, vol. 109, nº 2, pp. 465-490, 1994. [9]R. Barro, «Inequality and growth in a panel of countries, » Journal of Economic Growth, vol. 5, nº 1, pp. 5-32, 2000. [10]M. A. Galindo, «Distribución de la renta y crecimiento económico,» de Anuario jurídico y económico escurialense, 2002, pp. 473-502. [11]A. Álvarez, «Distribución de la renta y crecimiento económico, Información Comercial Española, ICE,» Revista de economía, nº 835, pp. 95-100, 2007. [12]J. C. Núñez, «Crecimiento económico y distribución del ingreso: una perspectiva del Paraguay,» Población y Desarrollo, nº 43, pp. 54-61, 2016. [13]S. Kuznets, «Economic Growth and Income Inequality, » American Economic Review, nº 45, pp. 1-28, 1955. [14]J. A. and. C. J. Araujo, «Relación entre la desigualdad de la renta y el crecimiento económico en Brasil: 1995-2012.,» Problemas del desarrollo, vol. 46, nº 180, pp.129-150, 2015. [15]F. V. A. and P. C. Correa, «La Curva Medioambiental de Kuznets: Evidencia Empírica para Colombia Grupo de Economía Ambiental (GEA),» Semestre Económico, vol. 8, nº 15, pp. 13-30, 2005. [16]W. Malenbaum, World Demand for Raw Materials in 1985 and 2000, McGraw-Hill: New York, 1978. [17]W. Beckerman, «Economists, scientists, and environmental catastrophe,» Oxford Economic Papers, vol. 24, nº 3, 1972. [18]G. y. K. A. Grossman, «Economic Growth and the Environment,» The Quarterly Journal of Economics, vol. 110, nº 2, pp. 353-377, 1995. [19]N. Stokey, «Are there Limits to Growth?,» International Economic Review, vol. 39, nº 1, 1998. [20]W. and. C. W. Jaeger, «A Theoretical Basis for the Environmental Inverted-U Curve and Implications for International Trade,» de Discussant: Clive Chapple, New York, 1998. [21]T. B. K. B. R. and. G. K. Cavlovic, «A Mets-Analysis of Environmental Kuznets Curve Studies,» Agricultural and Resource Economics, nº 29, pp. 32-42, 2000. [22]M. and. S. T. Heil, «Carbon emissions and economic development: future trajectories based on historical experience, » Environment and Development Economics, vol. 6, nº 1, pp. 63-83, 2001. [23]U. S. R. and E. B. Soytas, «Energy consumption, income, and carbon emissions in the United States,» Ecological Economics, vol. 62, nº 3, pp. 482-489, 2007.[24]C. W. J. Granger, «Investigating causal relations by econometrics models and cross spectral methods,» Econometrica, nº 37, pp. 424-438, 1969. [25]M. and U. R. Nasir, «Environmental Kuznets Curve for carbon emissions in Pakistan: An empirical investigation,» Energy Policy, vol. 39, nº 3, pp. 1857-1864,2011. [26]S. Johansen, «Statistical Analysis of Cointegration Vectors,» Journal of Economic Dynamics and Control, vol. 12, nº 2, pp. 231-254, 1988. [27]B. Goldman, «Meta-Analysis of Environmental Kuznets Curve Studies: Determining the Cause of the Curve’s Presence,» de Honors Projects, 2012. [28] M. B.  and T. T. Fosten, «Dynamic misspecification in the environmental Kuznets curve: Evidence from CO2 and SO2 emissions in the United Kingdom,» Ecological Economics, vol. 76, pp. 25-33, 2012.  


2020 ◽  
Author(s):  
Suleyman Yurtkuran

Abstract This study aims to investigate the dynamic relationship between income, clean energy consumption, exports, imports, urbanization and ecological footprint for Turkey from 1973 to 2015 using the environmental Kuznets curve hypothesis. The long-term coefficients derived from the ARDL approach demonstrate that import increase the ecological footprint, whereas urbanization and clean energy consumption do not have an impact on environmental pollution in the long-term. In addition, the 2001 dummy variable is negative and statistically significant. The crisis in 2001 slowed down the economic growth rate. This situation also caused reduction of environmental pollution. Moreover, the long run estimates indicate that the EKC hypothesis is valid in Turkey. However, the turning point of per capita income was calculated as $16,045 that outside of the analyzed period. As economic activities increase, human pressure on nature continues to increase. Consequently, the only factor that reduces the ecological footprint has been determined as exports. In contrast, economic growth and clean energy consumption cannot be used as a tool to reduce the ecological footprint. Turkey needs a higher level of per capita income than the threshold level to improve environmental quality.


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.


1997 ◽  
Vol 2 (4) ◽  
pp. 357-367 ◽  
Author(s):  
EDWARD B. BARBIER

This special issue is concerned with environmental Kuznets curves (EKC) - the hypothesis that there is an ‘inverted-U’ relationship between various indicators of environmental degradation and levels of per capita income. Explanations as to why environmental degradation should first increase then decline with income have focused on a number of underlying relationships, including:the effects of structural economic change on the use of the environment for resource inputs and to assimilate waste;the link between the demand for environmental quality and income;types of environmental degradation and ecological processes.


2013 ◽  
Vol 807-809 ◽  
pp. 732-735
Author(s):  
Shu Qing Zhou

Basing on the theories of Environmental Kuznets Curve,this paper analyzes the relationship between industrial economic growth and waste gas,waste water and solid wastes with the economic and environmental statistics of Chongqing Municipality from 1995 to 2009. The study shows that there is a inverted N-type of environmental Kuznets curve of the industrial waste water with the rising of industrial per capita value, but it lies in the left side of the EKC. There exists a extremely notable relationship between the industrial per capita value and produced volume of industrial solid wastes,but the curve has not come up to the turning point. In order to achieve the harmonious development between industrial economic growth and environmental pollution in Chongqing,we should establish the long-effect mechanism for environmental protection.


Ekonomika ◽  
2004 ◽  
Vol 65 ◽  
Author(s):  
Remigijus Čiegis

he relationship of economic growth and environmental impact has spurred fierce debates between growth optimists referring to the phenomenon of the environmental Kuznets curve, and pessimists referring to the limits to growth. The article draws some hints from a critical assessment of the literature on the environmental Kuznets curve. In particular, it is argued that the optimistic implications of this literature on the sustainability management are ungranted. However, analysis of environmental Kuznets curves allows a clarification of the few basic conditions for the management of sustainable development, including the sustainability of globalisation. These conditions can be met by implementing a systematic policy strategy aimed at shifting the Kuznets relations downward.


2018 ◽  
Vol 3 (6) ◽  
pp. 55 ◽  
Author(s):  
Halimahton Borhan ◽  
Elsadig Musa Ahmed ◽  
Mizan Hitam

The purpose of the study is to examine the relationship between CO2 on quality of life and on economic growth in ASEAN 8. Pollution may directly decrease output and quality of life by decreasing productivity of man-made capital and labor. The income levels per capita gross domestic product per capita were measured from the year 1965 to 2010. This study formulates a three equation simultaneous model for empirical research. For panel data, the Hausman specification test is the classical test of whether the fixed or random effects model should be used. In the pollution indicator emissions CO2 in ASEAN 8, the Environmental Kuznets Curve relationship is found.   Keywords: Economic Growth; Environmental Kuznets Curve; Hausman Test; Simultaneity, Endogeneity eISSN 2514-7528 © 2018. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.


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