Abstract

The Environment Kuznets Curve (EKC) shows that there exists an inverted ‘U’ relationship between indicators of environmental degradation and economic growth. This means that environmental degradation first increases (worsens), and then decreases as per capita income increases. The hypothesis is tested for the case of Singapore. The paper finds that Granger causality flows from export performance, trade intensity and energy consumption to CO2 emission, and the EKC exists in the long run, but not in the short run

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