Harnessing the Power of EKC and RKC: A Sustainable Development Perspective

Abstract

Objectives: The primary objective of this study is to examine the validity and applicability of the Environmental Kuznets Curve (EKC) theory within the framework of the Resource Kuznets Curve (RKC). Specifically, the study aims to analyze empirical evidence and underlying factors to understand the relationship between environmental degradation and income levels across six major economies: Germany, France, Japan, Canada, UK, and US, spanning the period of 1961–2018.
 
 Methods: To achieve the objectives outlined, this study utilizes empirical analysis techniques. Data from the specified economies are collected and analyzed to discern patterns and relationships between environmental degradation, income levels, and other relevant variables. Statistical methods and econometric modeling are employed to evaluate the shape and dynamics of the relationship, allowing for a comprehensive understanding of the complexities involved.
 
 Results: The analysis reveals both an N-shaped and a U-shaped pattern in the relationship between environmental degradation and income levels across the selected economies. These findings suggest that the relationship between environmental degradation and economic development is multifaceted and nonlinear, indicating the presence of critical thresholds and turning points. Furthermore, the study highlights the importance of clean energy consumption and renewable energy adoption in mitigating pollution and fostering sustainable economic growth.
 
 Conclusion: The findings of this study contribute to the ongoing debate surrounding the Environmental Kuznets Curve (EKC) theory within the context of the Resource Kuznets Curve (RKC). The identification of an N-shaped and a U-shaped pattern underscores the need for nuanced policy interventions aimed at balancing economic development with environmental sustainability. Policymakers and stakeholders can utilize these insights to formulate effective strategies for promoting clean energy adoption, reducing pollution, and fostering long-term environmental quality and economic growth.