Empirical analysis of the environmental Kuznets Curve for atmospheric pollution and economic growth in Algeria
This study aimed at examining the Environmental Kuznets curve hypothesis for Atmospheric pollution and economic growth in Algeria, in the period 1980–2017. As indicators of pollution emissions were chosen CO2 emissions per capita (PECO2), SO2 emissions per capita (PESO2), and NOx emissions per capita (PENOx). To prove these relations, we are using time series data in Vector Autoregression model supported by cointegration tests. The results indicated that the assumption of Environmental Kuznets curve was confirmed for the case of Algeria, where the mapping showed us a curve in inverse U-shape Environmental Kuznets curve characterized by a rising phase that peaked when the level GDP was highest to move to a new downward phase where environmental quality is improving over time. In terms of the direction of causality, we identified a causal relationship to Granger from GDP to the different emissions, which justifies that the implementation of a range of measures protecting the environmental quality of Algeria should be the top priority in the context of sustainable development and enhancing the long-run growth. To reduce pollution emissions, Algeria is called upon to increase significantly the use of renewable energies and the establishment of a more efficient energy policy.