After completing my PhD, I work on how to make the growth of the emerging economies more sustainable
Growing economies follow the path of the Environmental Kuznets Curve: develop first, clean up later
In ten seconds? Growing economies generally follow the path of Develop first, clean up later, which is illustrated by the Environmental Kuznets Curve (EKC). EKC is however not valid for all countries or environmental indicators.
Economic wealth of the West has been rapidly growing since the beginning of Industrial Revolution. Initially with new inventions environmental situation has been worsening. Then negative consequences of industrialisation became so evident that Western societies had to take measures. As a result, along with continuing economic growth, newly introduced policies and technologies in many areas stopped and even reversed environmental degradation. This process is often illustrated by the Environmental Kuznets Curve (EKC).
Does this Curve work for all developed countries? EKC usually corresponds well with the indicators related to traditional pollutants, but also works, for example, for energy use and CO2 emissions in European countries.
The EKC though is not valid for all developed countries: energy consumption and CO2 emissions in the USA do not follow the Curve.
Are developing countries now repeating the fate of the developed countries? Researchers agree that EKC is generally validated for the developing countries and major emerging economies of BRICS (Brazil, Russia, India, China and South Africa).
There are country exceptions such as Qatar and indicator exceptions such as water footprint . While traditional pollutants follow the EKC in China, with greenhouse gas emissions, it currently seems to follow the inverted U shaped EKC, as well as the sub-Saharan Africa.
Do these numerous exceptions mean that the EKC is not a good model? Not necessarily. Not always we know the scale of the EKCs for each country and for each indicator. It is possible that the peak of the curve is not passed yes. With further economic development and introduction of new technologies we might see the decline in CO2 emissions and overall environmental improvements in all countries.
Abstract: The present work examines the intertemporal causal relationship between environmental damage from carbon emissions released by agriculture per 1000 ha of utilized agriculture area and economic performance in the sector of agriculture as described by net value added per capita. The autoregressive distributed lag bounds testing approach is employed to examine this linkage, for three new entrant EU countries, namely, Bulgaria, Czech Republic, and Hungary. The environmental Kuznets hypothesis is confirmed in the long run for Bulgaria and Czech Republic while in the short run is validated only for the case of Czech Republic. The results indicate that the adoption of environment-friendly farming practices and crops' selection does not secure simultaneous high economic and environmental performance at least in the short run for our sample countries and also in the long run for Hungary necessitating the modification of the agro-environmental measures adopted to make those two targets complementary and not mutually exclusive for a farmer.
Pub.: 18 May '17, Pinned: 12 Jun '17
Abstract: This study examines the relation between CO2 emissions, income, non-renewable, and renewable energy consumption in Algeria during the period extending from 1980 to 2011. Our work gives particular attention to the validity of environmental Kuznets curve (EKC) hypothesis. The autoregressive distributed lag (ARDL) with break point method outcome demonstrates the positive effect of non-renewable type of energy on CO2 emissions consumption. On the contrary, the results reveal an insignificant effect of renewable energy on environment improvement. Moreover, the results accept the existence of EKC hypothesis but the highest gross domestic product value in logarithm scale of our data is inferior to the estimated turning point. Consequently, policy-makers in Algeria should expand the ratio of renewable energy and should decrease the quota of non-renewable energy consumption.
Pub.: 30 Apr '17, Pinned: 30 May '17
Abstract: Regional analysis of environmental issues has always been a hot topic in the field of sustainable development. Because the different levels of economic growth, urbanization, resource endowments, etc. in different regions generate apparently different ecological responses, a better description and comparison across different regions will provide more valuable implications for ecological improvement and policymaking. In this study, seven typical bays in southeast China that are a rapid developing area were selected to quantitatively analyze the relationship between socioeconomic development and coastal environmental quality. Based on the water quality data from 2007 to 2015, the multivariate statistical method was applied to analyze the potential environmental risks and to classify the seven bays based on their environmental quality status. The possible variation trends of environmental indices were predicted based on the cross-regional panel data by Environmental Kuznets Curve. The results showed that there were significant regional differences among the seven bays, especially Quanzhou, Xiamen, and Luoyuan Bays, suffered from severer artificial disturbances than other bays, despite their different development patterns. Socioeconomic development level was significantly associated with some water quality indices (pH, DIN, PO4-P); the association was roughly positive: the areas with higher GDP per capita have some worse water quality indices. In addition, the decreasing trend of pH values and the increasing trend of nutrient concentration in the seven bays will continue in the foreseeable future. In consideration of the variation trends, the limiting nutrient strategy should be implemented to mitigate the deterioration of the coastal environments.
Pub.: 19 May '17, Pinned: 30 May '17
Abstract: Global livestock and poultry industry is growing continuously, with large amounts of excreta produced. These wastes could be either important anaerobic fermentation materials of biogas energy or, if discharged into the environment without appropriate processing, serious pollution sources to soil and water systems. In developing countries, rural energy poverty is currently a major threat to sustainable development and livelihoods. Hence, the availability of clean, affordable and reliable energy is of significant concern in both policy and scholarly circles. Moreover, pollutants related with animal husbandry have been identified as one of the dominant contributors to contamination of water systems, such as surface water eutrophication and groundwater nitrate enrichment. Consequently, assessing waste from livestock and poultry breeding and the associated biogas systems is of critical essence in rural energy and environmental decision-making. The present study concentrates on a Chinese context and attempts to explicitly investigate Environmental Kuznets Curve (EKC) applying heterogeneous panel cointegration methods, combining with distribution and characteristics of waste from livestock and poultry breeding for China’s 31 provincial economies from 1991 to 2013. And, potentiality of biogas energy and its CO2 emission reduction based on the utilization of waste is assessed. The empirical results indicate an inverted U-shaped Environmental Kuznets Curve in N indicator resulting from livestock and poultry breeding, where value of the turning point is approximately CNY 51,800. With economic growth and consumptive change, problems arising from animal husbandry mode can be increasingly great. There will be many major challenges to address these special environmental issues in rural area, especially in Central China and West China. Biogas production by animal excreta could be one of the most important rural energies and waste treatment patterns, which could reach 63.65 billion m3 in 2013, equivalent to approximately 20% of natural gas used, and might offer a GHG reduction of more than 220 million tons of CO2 eq. China should assign greater importance to special agricultural pollution and energy options in rural communities, in addition to ‘beautiful countryside’ propaganda.
Pub.: 07 Mar '16, Pinned: 27 Apr '17
Abstract: Achieving economic development and environmental sustainability simultaneously is one of the most important development challenges for Africa today. The relationship between economic growth and environmental sustainability is founded on the environmental Kuznets curve (EKC). This paper examines the validity of the hypothesis and the driving factors of carbon dioxide (CO2) emission in five African countries using the STIRPAT empirical model, panel cointegration and fully modified ordinary least squares. Unlike previous studies, economic development is disaggregated into agriculture and industrial economic development. The results show that there is no evidence of the validity of the hypothesis in Africa, regardless of whether economic development is driven by agriculture or industrialisation. Energy structure and energy intensity are the two major driving forces of CO2 emissions in Africa. Population growth and urbanisation have negative relationship with CO2 emissions. From our results, the EKC is not a sound basis for environmental policy in Africa; rather, environmental policy in Africa, specifically for CO2 emissions mitigation, should focus on encouraging energy efficiency, enhancing the use of clean energy, incorporating the impact of population growth and harnessing the positive impacts of urbanisation.
Pub.: 02 Jun '16, Pinned: 27 Apr '17
Abstract: This paper looks into the causal association between economic growth, CO2 emission, trade volume, and human development indicator for Brazil, Russia, India, and China (BRIC countries) during 1980–2013. Following a generalized method of moments (GMM) technique, we have found out that bidirectional causality exists between CO2 emissions and economic growth. Feedback hypothesis is supported between CO2 emissions and human development, trade volume and human development, economic growth, and human development, and CO2 emissions and trade volume. Apart from finding out the unidirectional association from trade volume to economic growth, this study also validated the existence of Environmental Kuznets curve. Empirical findings of the study substantiate that the policymakers of the BRIC nations must focus on the green energy initiatives, either by in-house development or by technology transfer. This movement will allow them to control the ambient air pollution prevalent in these nations.
Pub.: 22 Jun '16, Pinned: 27 Apr '17
Abstract: Given the acceleration of economic changes in Sub-Saharan Africa economies (SSA), a better understanding of the relationship between economic growth and pollution is essential for policy makers. The purpose of this study is to investigate the impact of economic, financial and institutional developments on CO2 emissions for 25 SSA countries over the period 1996–2010. We use the reduced form modeling to control unobserved heterogeneity specific to countries and the GMM dynamic panel method to control endogeneity. We found no -evidence in our investigation for the Environmental Kuznets Curve (EKC) hypothesis. Indeed, a monotonically increasing relationship with GDP is found more appropriate for CO2 emissions. The results confirm that political stability, government effectiveness, democracy, and control of corruption influence negatively CO2 emissions. On the contrary, regulatory quality and rule of law have a positive effect on CO2 emissions. The results confirm the importance of institutional frameworks in reducing carbon dioxide emissions since institutional quality not only affects carbon dioxide emissions directly, but also indirectly via economic growth and trade openness.
Pub.: 24 Jun '16, Pinned: 27 Apr '17
Abstract: Better understanding the relationship between urbanization (U) and the eco-environment (E) is necessary to coordinate the development of them. Using a comprehensive index system for U and E with statistic data, and an improved environmental Kuznets curve (EKC) model and dynamic coordination coupling degree (CCD) model, this study addressed the relationship between U and E in the Yangtze River Delta (YRD) in the period 1980–2013. The main conclusions were as follows: (1) Economic urbanization and eco-environment endowment were the highest weighted factors in the U and E system respectively, and thus constitute the key factors. (2) Differentiated inverted-U curves were shown to exist in the relation between U and E across the cities studied, thereby confirming the improved EKC hypothesis. We further found economically developed areas to have higher urbanization levels than less developed areas at the point at which the curve inflects, less developed areas have higher eco-environmental pressure at inflection. Before the appearance of the inflection point, a striking positive correlation was observed between eco-environmental pressure and the urbanization level, while a negative correlation was found to follow it. (3) A dynamic coordination coupling relation was found to exist between U and E, which conforms to an S-shaped curve. The coordination coupling process in the YRD has gradually moved from a “low-grade symbiosis” stage into a “break-in development” stage, but the pattern of coordination belonging to the eco-environment part of the relation was found to always show some lag. The dynamic CCD model showed a difference in the spatial distribution of CCD, presenting higher values in the periphery of the region, and lower values in the center during the study period. The improved EKC and coupling analysis detailed in this study may help Chinese decision makers to formulate sustainable measures to balance urbanization development and eco-environment protection.
Pub.: 19 Jul '16, Pinned: 27 Apr '17
Abstract: A substantial fraction of the production in the emerging economies satisfies the consumption in the developed countries. This causes the notorious carbon leakage problem where the embodied carbon emissions in exports are not counted in the traditional territorial production-based emission accounting (PBA). We calculate the consumption-based emissions using latest available Eora data in a multiregional input–output (MRIO) model and then perform fixed effect and random effect panel regressions, dynamic panel regression, and heterogeneous panel regressions using the PBA data and consumption-based accounting (CBA) obtained from the MRIO model. The results show that the inverted-U-shaped Environmental Kuznets Curve (EKC) does not exist for CBA. Indeed, results obtained in this paper show that the consumption-based EKC is linearly increasing.
Pub.: 15 Feb '16, Pinned: 27 Apr '17
Abstract: We investigate this study to examine the relationship between economic growth, financial development, trade openness and CO<SUB align="right">2 emissions using the ordinary least squares (OLS) models for a panel data of 40 European countries during the period from 1985 to 2014. To estimate this causality we refer to the Cobb-;Douglas production function. The empirical finding indicate that there is evidence of bidirectional causality between economic growth and financial development, economic growth and trade openness, economic growth and CO<SUB align="right">2 emissions, financial development and trade openness and trade openness and two emissions. From the relationship between economic growth and pollution, we prove the existence of the environmental Kuznets curve. Furthermore, we confirm the feedback hypothesis of the bidirectional causality between trade openness and financial development. Also, we identify the neutrality hypothesis between CO<SUB align="right">2 emissions and financial development inflows. Finally, we validate the presence of the bidirectional causality between economic growth and financial development and between economic growth and trade openness in case of European countries.
Pub.: 15 Aug '16, Pinned: 27 Apr '17
Abstract: The Singapore Economic Review, Ahead of Print. This paper examines the environmental kuznets curve (EKC) hypothesis for China in the presence of globalization. We have applied Bayer and Hanck combined cointegration test as well as the auto regressive distributed lag (ARDL) bounds testing approach to cointegration by accommodating structural breaks in the series. The causal relationship among the variables is investigated by applying the vector error correction method (VECM) causality framework. The study covers the period of 1970–2012. The results confirm the presence of cointegration among the variables. Furthermore, the EKC hypothesis is valid in China both in short and long runs. Coal consumption increases carbon dioxide (CO2) emissions significantly. The overall index and sub-indices of globalization indicate that globalization in China is decreasing CO2 emissions. The causality results reveal that economic growth causes CO2 emissions confirming the existence of the EKC hypothesis. The feedback effect exists between coal consumption and CO2 emissions. CO2 emissions Granger causes globalization (social, economic and political).
Pub.: 08 Sep '16, Pinned: 27 Apr '17
Abstract: Fog and haze represent the most hazardous type of weather affecting the life and health of residents in China since 2009; as a result, many policymakers and economists have focussed on this issue. This study analyses the driving factors of fog and haze in 152 cities in China from the perspective of the economic effect. Considering the spatial attributes of fog and haze alongside the regional economic association, a spatial economic weight matrix is constructed and introduced into a spatial autoregressive model to analyse the spatial diffusion effect of PM2.5 pollution. The results show that PM2.5 pollution has significant spatial aggregation and diffusion effects that are significantly influenced by geospatial attributes and regional economic association in China. Furthermore, the effects of economic, social, and technological factors exhibit significant differences in relation to PM2.5 in different cities, and all of these factors present regional spillover effects. Specifically, the relationship between PM2.5 and economic development in China is consistent with the Environmental Kuznets Curve (EKC) hypothesis, in which different regions are located at different positions on the EKC curve due to the different situations related to economic development. As a result, the regional coordination of environmental policies and pollution-intensive industry transfer are needed to hold China's air pollution in check.
Pub.: 31 Aug '16, Pinned: 27 Apr '17
Abstract: We examined the influence of urbanization on CO2 emission at different development levels employing the stochastic impacts by regression on population, affluence and technology (STIRPAT) model on provincial panel data from 1995 to 2013 for China. To investigate regional differences based on development levels in the effects of urbanization on CO2 emission, we divided the 29 provinces of China into three regions according to their per capita real GDP at constant value (1990 = 100). The panel estimation for the whole dataset and the three regions showed an inverted U relationship between urbanization and CO2 emission in the major regions of China. Specifically, the effects of urbanization vary significantly across the regions. In region 2 and region 3, a threshold level was identified, beyond which the emission urbanization elasticity was negative, and further increases in the urbanization rate did not contribute to higher emissions. However, in region 1, only population and affluence, rather than urbanization, were significant factors affecting CO2 emissions. In addition, the results did not confirm the environmental Kuznets Curve relationship between income and CO2 emission, where CO2 emission increases monotonically with income. We propose a series of policy implications based on these outcomes to help realize emission reduction targets better.
Pub.: 31 Aug '16, Pinned: 27 Apr '17
Abstract: Publication date: 31 December 2016 Source:Land Use Policy, Volume 59 Author(s): Isabelle Tritsch, Damien Arvor Socio-economic development in the Brazilian Amazon is currently reaching national averages although deforestation activity has been declining for a decade. As a consequence, recent studies rejected the widely agreed boom-and-bust development hypothesis that deforestation first generates an economic boom, which is then followed by a collapse as forest resources are depleted. Here, we confirm these studies that there is no boom-bust cycle and suggest that a new pattern of relationship between deforestation and socio-economic development has emerged following an environmental Kuznets curve (EKC). In this scenario, environmental degradation increases in the early stages of economic development and decreases in later stages as the economy develops and wellbeing increases. To validate this assumption, we conducted the first sub-municipal analysis of socio-economic development and deforestation in the Brazilian Amazon for the 2000–2010 period. Our results confirm the emergence of an EKC relationship with a turning point beyond which socio-economic growth does not appear anymore to be a driver of deforestation. We also emphasize that areas subjected to active deforestation in 2010 present lower socio-economic indicators than stabilized areas, pointing to the precarious socio-economic situation of areas still undergoing active deforestation. We put these results in perspective by considering Brazilian efforts to ensure a transition in environmental governance with the objective of promoting land use sustainability through control of deforestation at the same time as supporting socio-economic development.
Pub.: 05 Oct '16, Pinned: 27 Apr '17
Abstract: Ever-;growing problems of environmental degradation can be attributed to the inequality scenarios arising from the prevalent socio-;economic imbalances and two of the major inequalities for the case of India in this regard are inequality in energy intensity and economic inequality. In this paper, we have taken the ambient air pollution data for 139 cities in India for the duration of 2001-;2013, where sulphur dioxide (SO<SUB align="right">2) and nitrogen dioxide (NO<SUB align="right">2) have been chosen as the major air pollutants. Based on the empirical evidence, it can be found that interactions between inequality and societal aspects have significant contributions towards determining environmental quality. The paper concludes that any environmental policy cannot function effectively unless it takes other developmental policies into consideration. Leaving socio-;economic parameters aside, the enhancement of environmental quality can prove to be extremely difficult to achieve, the evidence of which can be found from an analysis of Indian cities.
Pub.: 13 Oct '16, Pinned: 27 Apr '17
Abstract: Publication date: February 2017 Source:Renewable and Sustainable Energy Reviews, Volume 68, Part 1 Author(s): Xu Zhao, Dongkun Luo This paper studies the development of renewable energy in China by examining the driving force of environment quality, regulation and employment on renewable energy generation. We adopt renewable energy as a metric for environment quality, and test the relationship between renewable energy and income using Environment Kuznets Curve (EKC) theories. The impact of employment on renewable energy is tested, and dummy variables are used to indicate when the regulation was in effect. The results show that there exists a quadratic relationship between renewable energy and income. But the results fail to provide that the renewable energy generation is a job creator when the lagged unemployment rate is included as an explaining variable. We consider the employment population, and the finding shows that the employment can promote the development of renewable energy. The regulation has significantly positive impacts on renewable energy. The interaction of income and employment show that along with the income increases, the impacts of employment on renewable energy decrease. Our findings are helpful for government to figure out the determinants for rising the renewable energy generation, and take efficient measures to promote its development.
Pub.: 17 Oct '16, Pinned: 27 Apr '17
Abstract: Water is an essential element for life, playing an important role in economic development, although it is threatened by negative externalities that do not make it available for everyone. The main purpose of this article is to offer insightful empirical evidence of the nexus between economic growth and water usage. In this article we investigate the Environmental Kuznets Curve (EKC) hypothesis using a country's water footprint as an indicator of water impact. Using linear and nonlinear models we estimate, through the ordinary least square, the relationship between water impact and gross national income (GNI) per capita for 94 Countries. Our study shows an N-shape curve, which does not confirm the EKC hypothesis, both for the relationship between Water Footprint per capita and GNI per capita and Grey Water Footprint per capita and GNI per capita. From this results, a number of recommendations can be provided to strengthen the water resources policies and management.
Pub.: 05 Nov '16, Pinned: 27 Apr '17
Abstract: This study combines a panel cointegration analysis with a set of robustness tests to assess the short and long-run impacts of renewable energy on CO2 emissions, as well as the Kuznets Environmental Curve hypothesis for 25 selected african countries, over the period 1980-2012. The results provide no evidence of a total validation of EKC predictions. However, CO2 emissions are found to increase with income per capita. The overall estimations strongly reveal that renewable energy, with a negative effect on CO2 emissions, coupled with an increasing long-run effect, remains an efficient substitute for the conventional fossil-fuelled energy. Nonetheless, the impact of renewable energy is outweighed by primary energy consumption in both the short and long run, entailing more global synergy for outpacing the environmental challenges.
Pub.: 03 Nov '16, Pinned: 27 Apr '17
Abstract: Publication date: February 2017 Source:Renewable and Sustainable Energy Reviews, Volume 68, Part 1 Author(s): Salih Turan Katircioğlu, Nigar Taşpinar Employing second-generation econometric procedures that consider multiple structural breaks in the series, this article examines Turkey as a case study in the investigation of the moderating role of financial development in a conventional environmental Kuznets curve (EKC). The study uses two separate models for this purpose: (1) the main effects model and (2) the interaction effects model. The results of this investigation suggest a long-term equilibrium relationship between financial development and the EKC in Turkey, using both model options. Financial development has been found to moderate the effect of real output on carbon dioxide emissions in the shorter periods negatively, which signifies successful environmental performance and energy management. In comparison, financial development moderates the effect of real output on carbon dioxide emissions in the longer periods positively, and in which this finding again signifies that policies for energy savings and green house targets need to be established to target longer periods and energy management policies at higher levels of economic activity. The present study did not confirm a significant moderating effect of financial development on the impact of energy consumption on carbon dioxide emissions in the case of Turkey.
Pub.: 30 Oct '16, Pinned: 27 Apr '17
Abstract: Air pollution in China has become increasingly severe with rapid economic growth in recent years. We analyzed the relationship between the gross regional product (GRP) per capita and the Integrated Air Pollution Index (IAPI) in all the provincial capital cities in China from 2003 to 2014 and clustered them into six urban development patterns. These patterns are as follows: inverse U-shaped, N-1-shaped, N-2-shaped, U-shaped, linear decline, and stable. The majority of the provincial capitals are N-1, N-2, and U types, suggesting that the air quality is deteriorating currently or will deteriorate in the future. Meteorological conditions and industrial structure are taken into consideration when testing the environmental Kuznets curve (EKC) hypothesis between the economy and air pollutant concentration. Results show that there exists no direct relationship between three main pollutants and GRP per capita, while an inverse U-shaped relationship with the secondary industry and a U-shaped relationship with the tertiary industry. These results will be a meaningful reference for policy makers to develop policies that coordinate the environmental protection and economic development.
Pub.: 16 Nov '16, Pinned: 27 Apr '17
Abstract: Authors: Manuel A. Zambrano-Monserrate ; Christopher Carvajal-Lara ; Roberto Urgiles-Sanchez Article URL: http://www.tandfonline.com/doi/full/10.1080/16081625.2016.1245625?ai=10zf0&mi=47tg1r&af=R Citation: Asia-Pacific Journal of Accounting & Economics Publication Date: 2016-11-15T09:26:07Z Journal: Asia-Pacific Journal of Accounting & Economics
Pub.: 15 Nov '16, Pinned: 27 Apr '17
Abstract: In view of Saudi Arabia's position as one of the main polluters in the World and its status as an oil country, it is interesting to study the relationship between transport carbon dioxide (CO2) emissions, road transport energy consumption and economic activity in Saudi Arabia. We check for the environmental Kuznets curve hypothesis for Saudi Arabia over the period 1971–2011. The conventional unit root tests, unit root tests with the breakpoint, the autoregressive distributed lag (ARDL) bounds testing to cointegration procedure and Granger causality tests are employed. We find that the inverse-U relationship does not exist between transport CO2 emissions and economic growth in Saudi Arabia. In addition, there is a bidirectional causality between transport CO2 emissions and road transport energy consumption in both the short and long run. However, there is only unidirectional causality running from economic growth to transport CO2 emissions and road transport energy consumption in the long run. Hence, our results indicate that energy conservation policies in the transport sector should be addressed in the long run without caution to limit economic growth. In addition, from a sustainability perspective, a continued economic growth is not possible in Saudi Arabia without continuing increases in carbon emissions.
Pub.: 17 Nov '16, Pinned: 27 Apr '17
Abstract: This study applies the panel smooth transition regression (PSTR) model to explore the impacts of real income, energy, and investment on the CO2-income nexus for 99 countries covering the period from 1971 to 2010. We find that in the full sample, as real income rises, CO2 emissions rapidly increase first, and then their increasing rate starts to slow down, while the environmental Kuznets curve (EKC) hypothesis for CO2 emissions is supported from the composite results of three income groups. Our results show that decreasing energy usage, improving energy efficiency, and enhancing clean energy usage could effectively ease the impacts of real income on CO2 emissions. Moreover, countries with different energy trade conditions and income levels have different CO2-income correlations, indicating that one size does not fit all.
Pub.: 08 Dec '16, Pinned: 27 Apr '17
Abstract: Abstract This paper includes country level virtual water data in an Environmental Kuznets Curve (EKC) for water pollution. Virtual water accounts for the total amount of water required to produce a good in all stages of production. This paper constructs a water independence index, defined as the water required in domestic production divided by the amount of water required for all imported goods. Results suggest an increase in trade openness and importing water intensive goods may lower water pollution levels.AbstractThis paper includes country level virtual water data in an Environmental Kuznets Curve (EKC) for water pollution. Virtual water accounts for the total amount of water required to produce a good in all stages of production. This paper constructs a water independence index, defined as the water required in domestic production divided by the amount of water required for all imported goods. Results suggest an increase in trade openness and importing water intensive goods may lower water pollution levels.
Pub.: 11 Nov '16, Pinned: 27 Apr '17
Abstract: Issues concerning which factors that influence carbon dioxide emission, and which administrative measures should be imposed to reduce carbon emission in Chinese cities, have been on the agenda in cities’ policy-making. Yet little literature has studied this topic from the city level. This paper first measures CO2 emission of 73 Chinese cities. We find heterogeneity embedded in the cross-city distribution of CO2 emission per capita and a nonlinear structure in the relationship between carbon emission and GDP per capita. To describe such multimodality and examine the determinants of CO2 emission in these cities, this article applies a linear mixed effect model covering the quadratic term of GDP per capita to extend the stochastic impact by regression on population, affluence, and technology (STIRPAT) model. The empirical results demonstrate that population size, secondary industry proportion, energy consumption structure, urbanization level and economic level have generally shown a positive influence on CO2 emissions in Chinese cities. However, the urbanization level is of no significance. The phenomenon of the environmental Kuznets curve varies across Chinese cities, according to which three city groups are formed. Specific policy recommendations are given to each city group in light of their unique influencing modes on carbon emissions.
Pub.: 09 Dec '16, Pinned: 27 Apr '17
Abstract: The aim of this study is to test the hypothesis of the Environmental Kuznets Curve (EKC) with a sample of 58 MEA (Middle East & African) and 41 EU (European Union) countries for the period 1990 to 2011. The empirical analysis is carried out using the GMM-system method to solve the problem of endogenous variables. We focused on direct and indirect effects of institutional quality (through the efficiency of public expenditure, financial development, trade openness and foreign direct investment) and the income-emission relationship. We found a monotonically increasing relationship between CO2 emissions and GDP in both MEA and EU regions. The policy implication is clear: in order to have sustainable positive economic performance and to reduce carbon dioxide emission in the country at the same time, policy makers should regulate and enhance the role and efficiency of domestic institutions.
Pub.: 17 Dec '16, Pinned: 27 Apr '17
Abstract: The aim of the study is to address the relationship between environmental degradation and economic growth in Egypt. In this regard, the study examines the relationship between carbon dioxide emissions (CO<SUB align="right">2), economic growth (real GDP per capita), energy consumption, trade openness and population density employing Johansen cointegration analysis over time series data of 1980-;2010. Specifically, the study investigates the existence of Environmental Kuznets Curve (EKC) hypothesis, the relationship between CO<SUB align="right">2 emissions and real GDP per capita. The results of the study confirm the existence of long-;run relationship between the variables. In addition, the study does not support the existence of EKC either in the short or the long run. Also, it is concluded that energy consumption is correlated positively with CO<SUB align="right">2 emissions, while trade openness and population are correlated negatively with it. Granger causality test indicates bilateral causality between economic growth and CO<SUB align="right">2 emissions and unilateral causality running from economic growth to energy consumption and from trade openness to economic growth. Important policy implications will be recommended based on these results.
Pub.: 30 Nov '16, Pinned: 27 Apr '17
Abstract: This study reinvestigates the presence of environmental Kuznets curve (EKC) in the context of Malaysia over the period of 1971–2012. For this purpose, the impact of real GDP per capita, financial development, trade openness, foreign direct investments, and energy consumption on Carbon Dioxide (CO2) emissions is empirically examined within the EKC framework. The study employed the Autoregressive Distribute Lagged (ARDL) bound test to investigate the long-run relationship between the study variables. For robustness, the study conjointly applied the Dynamic Ordinary Least Square (DOLS) method. The Granger causality test is exercised to test the causal relationship among the variables for both short and long-run. Empirical results of ARDL bound test approach suggest the presence of EKC hypothesis for Malaysia. The Granger causality test results indicate that energy consumption and carbon emissions have a bidirectional relationship, while other variables uni-directionally cause the CO2 emissions. Whereas, in the short-run, there is no bidirectional causality between the variables while uni-directional causalities run from trade openness and FDI towards economic growth, financial development, and CO2 emissions. The unidirectional causality from other variables towards CO2 emissions supports the evidence of the environmental Kuznets curve hypothesis as this appears in the countries where the EKC is validated.
Pub.: 06 Dec '16, Pinned: 27 Apr '17
Abstract: Based on annual average PM2.5 gridded dataset, this study first analyzed the spatiotemporal pattern of PM2.5 across Mainland China during 1998-2012. Then facilitated with meteorological site data, land cover data, population and Gross Domestic Product (GDP) data, etc., the contributions of latent geographic factors, including socioeconomic factors (e.g., road, agriculture, population, industry) and natural geographical factors (e.g., topography, climate, vegetation) to PM2.5 were explored through Geographically Weighted Regression (GWR) model. The results revealed that PM2.5 concentrations increased while the spatial pattern remained stable, and the proportion of areas with PM2.5 concentrations greater than 35 μg/m(3) significantly increased from 23.08% to 29.89%. Moreover, road, agriculture, population and vegetation showed the most significant impacts on PM2.5. Additionally, the Moran's I for the residuals of GWR was 0.025 (not significant at a 0.01 level), indicating that the GWR model was properly specified. The local coefficient estimates of GDP in some cities were negative, suggesting the existence of the inverted-U shaped Environmental Kuznets Curve (EKC) for PM2.5 in Mainland China. The effects of each latent factor on PM2.5 in various regions were different. Therefore, regional measures and strategies for controlling PM2.5 should be formulated in terms of the local impacts of specific factors.
Pub.: 13 Jan '17, Pinned: 27 Apr '17
Abstract: Publication date: 15 March 2017 Source:Applied Energy, Volume 190 Author(s): Yuan Wang, Chen Zhang, Aitong Lu, Li Li, Yanmin He, Junji ToJo, Xiaodong Zhu The present study concentrates on a Chinese context and attempts to explicitly examine the impacts of economic growth and urbanization on various industrial carbon emissions through investigation of the existence of an environmental Kuznets curve. Within the Stochastic Impacts by Regression on Population, Affluence and Technology framework, this is the first attempt to simultaneously explore the income/urbanization and disaggregated industrial carbon dioxide emissions nexus, using panel data together with semi-parametric panel fixed effects regression. Our dataset is referred to a provincial panel of China spanning the period 2000–2013. With this information, we find evidence in support of an inverted U-shaped curve relationship between economic growth and carbon dioxide emissions in the electricity and heat production sector, but a similar inference only for urbanization and those emissions in the manufacturing sector. The heterogeneity in the EKC relationship across industry sectors implies that there is urgent need to design more specific policies related to carbon emissions reduction for various industry sectors. Also, these findings contribute to advancing the emerging literature on the development-pollution nexus.
Pub.: 06 Jan '17, Pinned: 27 Apr '17
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