Abstract
This article examines the environmental Kuznets curve for the member countries of the United States–Mexico–Canada Agreement (USMCA), using the ecological footprint as a measure of environmental degradation during 1980–2016. Panel data econometric methods are applied in this research, such as the cross-section dependence, unit root, cointegration and causality tests, and the new method of moments quantile regression (MMQR). The results suggest that the variables are characterized by a cross-section dependence, integrated of order one, and cointegrated. The fully modified ordinary least squares (FMOLS) method shows that renewable energy reduces environmental degradation, and the environmental Kuznets curve is validated. In contrast, patents and trade openness do not show a statistically significant relationship. These results are confirmed with the MMQR, where renewable energy reduces environmental degradation in quantiles from 4 to 6, while the environmental Kuznets curve hypothesis is valid in quantiles from 3 to 9, and patents and trade openness do not show a statistically significant relationship in any quantile. Therefore, it is essential to promote renewable energies, cleaner technologies, and environmental regulations to reduce polluting emissions.
Highlights
An essential objective of any country should be to achieve economic growth without affecting its environment
The environmental Kuznets curve shows that in the early stages of economic development, environmental pressure increases faster than income due to greater use of natural resources and more significant emission of pollutants, people are too poor to pay for their abatement or are indifferent when faced with environmental degradation, while at higher levels of economic growth, people value the environment more and regulatory institutions become effective; pollution levels decrease [26]
To estimate the long-term model, the fully modified ordinary least squares (FMOLS) and the new method of moment quantile regression proposed by Machado and Silva [34] are applied
Summary
An essential objective of any country should be to achieve economic growth without affecting its environment. N form of the environmental Kuznets curve, using a quantile regression analysis in panel data for 74 countries for 1994–2012, and considering additional variables such as technological development, renewable energy consumption, trade, and institutional inequality. This research studies the relationship between economic growth, renewable energy consumption, trade openness, patenting activity, and environmental degradation (measured by the ecological footprint) for United States–Mexico–Canada Agreement (USMCA) member countries through econometric analysis with panel data during 1980–2016.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
