Examining the Empirical Evidence for Environmental Kuznets Curve in Jammu and Kashmir

Abstract

The present examines the existence of Environmental Kuznets Curve between Ambient air quality and economic performance of Jammu and Kashmir. The study has taken time series macro-economic annual data spread over a period of 10 years from 2005 to 2014. The study uses unit root tests, Granger causality test and fully modified ordinary least squares (OLS) regression to arrive at the results. Results of the study confirm a bidirectional short-run relationship between Ambient Air Quality (AQL) and GSDP. Further, the results of Quadratic Fully modified ordinary least squares (OLS) regression shows the existence of an inverted U-curve relationship between AQL and GSDP.