Does environmental Kuznets curve hypothesis exist? evidence from dynamic panel threshold

Carbon dioxide (CO2) emissions have been rising globally and have raised public concern regarding their detrimental effects to human life. This article investigates the validity of the Environmental Kuznets Curve (EKC) hypothesis in developing countries in a nonlinear framework. The article applies...

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Main Authors: Sirag, Abdalla, Tunde, Matemilola Bolaji, Law, Siong Hook, Amin Noordin, Bany Ariffin
Format: Article
Language:English
Published: Taylor & Francis 2018
Online Access:http://psasir.upm.edu.my/id/eprint/72329/
http://psasir.upm.edu.my/id/eprint/72329/1/Does%20environmental%20Kuznets%20curve%20hypothesis%20exist.pdf
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author Sirag, Abdalla
Tunde, Matemilola Bolaji
Law, Siong Hook
Amin Noordin, Bany Ariffin
author_facet Sirag, Abdalla
Tunde, Matemilola Bolaji
Law, Siong Hook
Amin Noordin, Bany Ariffin
author_sort Sirag, Abdalla
building UPM Institutional Repository
collection Online Access
description Carbon dioxide (CO2) emissions have been rising globally and have raised public concern regarding their detrimental effects to human life. This article investigates the validity of the Environmental Kuznets Curve (EKC) hypothesis in developing countries in a nonlinear framework. The article applies the dynamic panel threshold method, which is able to estimate the EKC turning point. The main findings reveal the existence of a nonlinear relationship between income (GDP per capita) and carbon dioxide emissions. Precisely, for developing countries (low and middle income) the results reveal that GDP per capita is positive and significantly related to CO2 emissions, below and above the threshold. These results challenge the validity of the EKC hypothesis in developing countries, suggesting that developing countries are still below the desired income turning point, at which better economic development will lead to reduced environmental damage. Based on the study findings, it may be inappropriate for the policymakers in developing countries to adopt the EKC postulate as the theoretical basis for policies favouring economic growth.
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spelling upm-723292020-05-08T02:05:45Z http://psasir.upm.edu.my/id/eprint/72329/ Does environmental Kuznets curve hypothesis exist? evidence from dynamic panel threshold Sirag, Abdalla Tunde, Matemilola Bolaji Law, Siong Hook Amin Noordin, Bany Ariffin Carbon dioxide (CO2) emissions have been rising globally and have raised public concern regarding their detrimental effects to human life. This article investigates the validity of the Environmental Kuznets Curve (EKC) hypothesis in developing countries in a nonlinear framework. The article applies the dynamic panel threshold method, which is able to estimate the EKC turning point. The main findings reveal the existence of a nonlinear relationship between income (GDP per capita) and carbon dioxide emissions. Precisely, for developing countries (low and middle income) the results reveal that GDP per capita is positive and significantly related to CO2 emissions, below and above the threshold. These results challenge the validity of the EKC hypothesis in developing countries, suggesting that developing countries are still below the desired income turning point, at which better economic development will lead to reduced environmental damage. Based on the study findings, it may be inappropriate for the policymakers in developing countries to adopt the EKC postulate as the theoretical basis for policies favouring economic growth. Taylor & Francis 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/72329/1/Does%20environmental%20Kuznets%20curve%20hypothesis%20exist.pdf Sirag, Abdalla and Tunde, Matemilola Bolaji and Law, Siong Hook and Amin Noordin, Bany Ariffin (2018) Does environmental Kuznets curve hypothesis exist? evidence from dynamic panel threshold. Journal of Environmental Economics and Policy, 7 (2). 145 - 165. ISSN 2160-6544; ESSN: 2160-6552 https://www.tandfonline.com/doi/abs/10.1080/21606544.2017.1382395 10.1080/21606544.2017.1382395
spellingShingle Sirag, Abdalla
Tunde, Matemilola Bolaji
Law, Siong Hook
Amin Noordin, Bany Ariffin
Does environmental Kuznets curve hypothesis exist? evidence from dynamic panel threshold
title Does environmental Kuznets curve hypothesis exist? evidence from dynamic panel threshold
title_full Does environmental Kuznets curve hypothesis exist? evidence from dynamic panel threshold
title_fullStr Does environmental Kuznets curve hypothesis exist? evidence from dynamic panel threshold
title_full_unstemmed Does environmental Kuznets curve hypothesis exist? evidence from dynamic panel threshold
title_short Does environmental Kuznets curve hypothesis exist? evidence from dynamic panel threshold
title_sort does environmental kuznets curve hypothesis exist? evidence from dynamic panel threshold
url http://psasir.upm.edu.my/id/eprint/72329/
http://psasir.upm.edu.my/id/eprint/72329/
http://psasir.upm.edu.my/id/eprint/72329/
http://psasir.upm.edu.my/id/eprint/72329/1/Does%20environmental%20Kuznets%20curve%20hypothesis%20exist.pdf