Search results

The purpose of this study is to analyze the Environmental Kuznets Curve (EKC) hypothesis within the methane (CH₄) emission–economic growth nexus among the six Association of Southeast Asian Nations (ASEAN) countries from 1985 to 2012.

The study employs dynamic panel data estimation approaches such as mean group (MG) and pooled MG (PMG) techniques.

The findings reveal that the EKC hypothesis for the CH₄ emission in these economies proves to be valid. In other words, economic growth causes CH₄ emissions to decrease. Nevertheless, energy consumption is deteriorating the environment by enhancing CH₄ emissions in these countries.

The ASEAN region has experienced substantial economic growth over the previous few decades. Nevertheless, pollution has also increased manifolds in this region. Methane is a more potent greenhouse gas (GHG) as compared to carbon dioxide (CO₂) and a major source of socio-economic issues in the ASEAN region. This study is the first in the existing literature on the EKC hypothesis examining the role of economic growth on CH₄ emissions in the selected ASEAN countries. The outcomes of this study could be really beneficial for the policymakers in this region regarding sustainability and economic development.

The purpose of this research is to examine the validity of the agriculture-induced environmental Kuznets curve (EKC) hypothesis with evidence from an autoregressive distributed lag (ARDL) approach with a structural break including real income and energy consumption in the model for Ghana over the period 1980–2014.

The ARDL approach with a structural break was used to analyze the agriculture-induced EKC model which has not been studied in Ghana. The dynamic ordinary least squares (DOLS), canonical cointegration regression (CCR) and fully modified ordinary least squares (FMOLS) econometric methods were further used to validate the robustness of the estimates, and the direction of the relationship between the study variables was also clarified using the Toda–Yamamoto Granger causality test.

The ARDL results revealed that GDP, energy consumption and agricultural value added have significant positive effects on CO₂ emissions, while GDP² reduces CO₂ emissions. The Toda-Yamamoto causality test results show a bidirectional causality running from GDP and energy consumption to CO₂ emissions whereas a unidirectional long-term causality runs from GDP² and agriculture value-added to CO₂ emissions.

This finding validated the presence of the agriculture-induced EKC hypothesis in Ghana in both the short run and long run, and the important role of agriculture and energy consumption in economic growth was confirmed by the respective bidirectional and unidirectional causal relationships between the two variables and GDP. Thus, a reduction in unsustainable agricultural practices is recommended through specific policies to strengthen institutional quality in Ghana for a paradigm shift from rudimentary technology to modern sustainable agrarian technologies.

This study is novel in the EKC literature in Ghana, as no study has yet been done on agriculture-induced EKC in Ghana, and the other EKC studies also failed to account for structural breaks which have been done by this study. This study further includes a causality analysis to examine the direction of the relationship which the few EKC studies in Ghana failed to address. Finally, dynamic ordinary least squares (DOLS), canonical cointegration regression (CCR) and fully modified ordinary least squares (FMOLS) methods are used for robustness check, unlike other studies with single methodologies.

The goal of sustainable economic growth is achievable only when economic growth and development occur without environmental degradation. The Environmental Kuznets Curve (EKC) hypothesis explains the inverted U-shaped association between economic activity and environmental degradation. The primary objective of this study is to empirically test the truth behind the EKC hypothesis. In addition to that, the study is intended to analyze the variation in the shape of the EKC; that is, cross-country variation, as well as variation over time. In order to achieve the stated objectives, the study analyzed a long list of countries (75 countries) for a fairly long period of time (1960–2016, i.e., 57 years). The empirical literature in this area estimated the EKC using some form of a polynomial regression equation. This study also used a similar kind of modeling structure to understand cross-country as well as dynamic variation in the shape of the EKC. In this study, firstly the selected countries are grouped on the basis of the shape of the EKC. Secondly, the dynamic behavior of each parameter in the polynomial equation is analyzed to understand the degree of association between economic activity and environmental degradation. This study suggests a decline in degree of association between the two over time.

Based on the hypothesis of the environmental Kuznets curve (EKC), the purpose of this study is to investigate the relationship between environmental pollutants (as measured by CO₂ emissions) and GDP for India, over the period 1980–2012. The presence of an inverted “U” shape relationship is examined while controlling for factors such as the degree of trade openness, foreign direct investment, oil prices, the legal system and industrialization.

To verify whether the EKC follows a linear, quadratic or polynomial form, autoregressive distributed lag (ARDL) bounds testing approach for cointegration with structural breaks is adopted. The annual time series data for carbon emissions (CO₂), economic growth (GDP), industrial development (industrialization), foreign direct investment and trade openness have been obtained from World Development Indicators online database. Crude oil price (international price index) for the period is collected from the International Monetary Fund. Data for total petroleum consumption are collected from the US Energy Information Agency. Data for economic freedom variables are from the Fraser Institute's Economic Freedom Index's online database.

The findings support the existence of inverted U-shaped EKC in the short-run, but not in the long-run. A linear monotonic relationship has also been estimated in select model specifications. Additionally, trade openness has been estimated to reduce emissions in models, which incorporate FDI. Else, where significant, its impact on carbon emissions is adverse. A rise in fuel price leads to reduction in carbon emissions across model specifications. Further, the lower size of government degrades the environment both in the long-run and short-run.

Given the existence of the pollution haven hypothesis, wherein more trade and foreign direct investments cause environmental degradation, the paper proposes formulation of appropriate regulatory mechanisms that are environmentally friendly. Additionally, India's new economic policies, favoring liberalization, privatization and globalization, reinforces the need to strengthen environmental regulations.

Incorporation of economic freedom as measured by the “Size of Government” in the EKC model is unique. “Size of Government” deserves a special mention. The rationale for including this explanatory variable is to understand whether countries with lower government size are more polluting. After all, theory does suggest that goods and services, which have higher social cost vis-à-vis private cost, shall be overproduced in economies that adopt more market-friendly policies, necessitating government intervention. In the study, size of government is measured as per the definition and methodology adopted by Fraser Institute's Economic Freedom of the World Index.

This study investigates the existence of the environmental Kuznets curve (EKC) for deforestation for Ghana over the 1962–2018 the time period.

The study employs a time-varying approach, the bootstrap rolling window Granger causality test to achieve its set objectives.

The results from our study reveals an inverted “N” shape EKC for deforestation, implying that deforestation will initially decrease with increases in economic growth up to a certain income threshold and increases with further increases in economic growth beyond this income threshold up to a higher income threshold and then decrease with further increases in economic beyond the higher income threshold.

The results from the study project show that over time economic growth can serve as a natural panacea to cure and mitigate the ills of deforestation that have plagued Ghana's forests over the years.

The results further highlight the important role of strong institutions in fighting the deforestation menace.

The originality of this study lies in its methodology which allows for feedback from deforestation to the economy. This is in contrast to earlier studies on the EKC for deforestation which allowed causality only from deforestation to the economy.

Interaction between environmental pollution and economic growth determines the achievement of the green growth objective of developing economies. An economy turns around the inverted U-shaped environmental Kuznets curve (EKC) when pollution is effectively dampened by social, political and economic factors as such economy grows. Thus, the purpose of this paper is to examine the EKC considering the impact of institutional quality on six variables of environmental pollution (carbon dioxide (CO₂), nitrous oxide (N₂O), suspended particulate matters (SPM), rainfall, temperature and total greenhouse emission (TGH)) using the case of Nigeria.

The EKC model includes population density, education expenditure, foreign direct investment and gross domestic investment as control variables, and it was analysed using the autoregressive distribution lag (ARDL) econometric technique, which has not been applied in the literature on Nigeria.

The results, inter alia, indicate that there is EKC for CO₂ and SPM. This implies that the green growth objective can be pursued in Nigeria with concerted efforts. Other environmental pollution indicators did not exert significant influence on economic growth.

Therefore, it is recommended that Nigeria’s institutional quality be strengthened to limit environmental pollution in light of economic growth.

Previous studies are yet to apply a more developed econometric method, like the ARDL, to estimate the EKC model for Nigeria. This study fills this observed knowledge gap.

The modernization of the agro-based industry has encouraged the application of inorganic fertilizers to increase productivity. However, such fertilizer emissions may pose harmful environmental effects in the long run. This study aims to empirically explore the matter by applying the environmental Kuznets curve (EKC) hypothesis in the Indian agro-based industry.

The study builds two models considering nitrous oxide emission levels from inorganic (synthetic) and organic (manure) fertilizers to evaluate the safer option for the environment. The validity of an industry-specific EKC (IEKC) is tested for the models considering time series data from 1975 to 2019. Here, the autoregressive distributed lag model is applied for the 45 years long time series analysis to test the hypothesis with respect to inorganic and organic fertilizers emissions.

The existence of the IEKC is rejected by the inorganic fertilizer emissions model. Its U-shaped curve implies that applying such fertilizers will gradually cause degrading environmental effects. On the other hand, the organic fertilizer emissions model supports the existence of an inverted U-shaped IEKC. It proves that organic fertilizers are a better choice for safeguarding the environment in the long run.

Applying the EKC hypothesis on an industrial level can signify whether an industry worsens the environment in the long run. However, very few studies have explored such an application of the hypothesis in the past. Moreover, the literature could not find any previous study exploring the environmental effects of inorganic and organic fertilizers by analyzing the EKC hypothesis. The hypothesis can offer such insights with simplified empirical assessment.

The purpose of this paper is to fill the gap between energy and growth literature in Pakistan. In this regard, the authors investigated the environmental Kuznets curve (EKC) hypothesis and concluded the relationship between carbon emission and other four variables (energy consumption, economic growth, trade openness and population) at the same time. It is hoped that the policy implications of this research will provide a strong base to address the problem of environmental degradation in Pakistan.

This study investigates the relationship between CO₂ emission, economic growth, energy consumption, trade‐liberalization, and population density by using the EKC hypothesis for Pakistan. The cointegration analysis with Auto Regressive Distributed Lag (ARDL) bound testing approach is employed over time series data from the period 1971 to 2008. The stability of model was also checked at the end.

The results of the study do not support EKC in a short‐run, whereas the long‐run inverted U shaped hypothesis was confirmed between carbon emission and growth, energy consumption, trade openness and population density. Thus, findings of the study confirmed that EKC was a long‐run phenomenon in the case of Pakistan and most interestingly, with all other explanatory variables, population density also appeared to be a contributor to environmental degradation in Pakistan.

This work is original and a new contribution to single country analysis. It is first time that carbon emission is empirically tested for all four major determinants (economic growth, energy consumption, trade‐liberalization, and population density) at the same time. The long ranged time series data of 38 years enhances the validity of results. The most surprising finding of this research is that the population density also contributes to environmental degradation in Pakistan.

Agricultural development still constitutes an integral part of Ghana's drive towards job creation, industrial development and economic growth with various growth policies placing the agricultural sector at the core. While there are likely environmental effects of agricultural activities, evidence in Ghana remains scanty. The study focused on examining, empirically, the effects of the development of the agricultural sector on carbon dioxide (CO₂) emission in Ghana.

The paper employed the Stochastic impacts by regression on population, affluence and technology (STIRPAT) framework to test for the environmental Kuznets curve (EKC) hypothesis for agriculture and carbon dioxide emission as well as the effect that the changing structure of Ghana's agricultural development has on carbon dioxide emission for the 1971–2018 period. Regression analysis, variance decomposition and causality analysis were performed.

The regression results revealed a U-shaped relationship between agricultural development and carbon emission, implying a rejection of the EKC hypothesis between the two variables. In addition, the Structural Adjustment Programme was found to positively moderate the effect agriculture has on carbon emission.

The study recommends the need for policy-makers to facilitate the large-scale adoption and use of modern technology and environmentally friendly agricultural methods.

The study is among the few works to assess the EKC hypothesis between agriculture and carbon dioxide emission in Africa. The direct and indirect effect of structural adjustment programme on carbon emission is estimated.

This study investigates the relationship between economic growth, international trade, and environmental degradation in Sub-Saharan Africa (SSA), focusing on the validity of the environmental Kuznets hypothesis (EKC), the pollution havens hypothesis (PHH), and the factor endowment hypothesis (FEH).

The study uses annual data for 41 SSA countries between 1990 and 2017 and employs the bias-corrected least square dummy variable (LSDVC) estimation techniques. Environmental degradation is indicated by carbon dioxide (CO₂), delicate particulate matter (PM2.5) emissions, and deforestation.

The results confirm the validity of the EKC hypothesis for PM2.5 emissions and deforestation but not for CO₂ emissions. The results also indicate that international trade reduces deforestation and that both the PHH and FEH are valid for CO₂ emission but not for PM2.5 emissions and deforestation.

In this paper, the authors are able to illustrate that both economic growth and international trade can harm the environment if unchecked. Therefore, the conclusion of this study offers policy options through which SSA countries can achieve desired economic growth goals without affecting environmental quality. The study can be a benchmark for environmental policy in the region.

The authors provide an in-depth discussion of the growth-trade-environmental degradation nexus in SSA. The EKC, PHH, and FEH’s validity confirm that economic growth remains a threat to the local natural environment in SSA. Hence, the need for a trade-off between economic growth needs and environmental degradation and understanding where to compromise to achieve SSA's economic development priorities.