Abstract
This study contributes to the analysis of the Environmental Kuznets hypothesis (EKC) for 31 industrialized countries during 1980-2019 using long-term static and dynamic panel data methods. According to Pesaran's CD tests, the CSD issue is present in all variables. The EKC model had a long-run relationship, according to the results of the second-generation Pesaran CIPS unit roots and Westerlund tests. The estimation results of the static model (MG) and dynamic models (CS-DL and CS-ARDL) reached the same conclusion as the reliability of the EKC hypothesis, implying that environmental pollution and economic growth are linked in an inverted N-letter shape.
Highlights
This study used the cubic shape of the EKC model to examine the effect of per capita income, its squared and cubed, energy consumption, and globalization on the deterioration of the environment expressed in CO2 across panel data for a sample of 31 industrialized countries from 1980 to 2019
The analysis began with CSD tests, which were ignored by most research dealing with the EKC model before and after 2010
The results of Pesaran (2004) and Pesaran (2015) tests showed that the cross-sections were not independent for all variables
Summary
Economic development creates much-needed wealth for society, but at the expense of the environment. Concerns about the deterioration of global environmental quality have grown in recent years, as evidenced by the rising trend of carbon dioxide (CO2) (one of the primary components of the greenhouse effect) in the atmosphere. Numerous studies on total emissions causal factors, such as energy consumption, wealth creation, and rapid urbanization, have been conducted to promote sustainable development strategies. Academics and policymakers are still debating the link between these processes and environmental deterioration. Carbon dioxide emissions are skyrocketing due to increased globalization and financial progress, and increased energy demand for economic activities. As a result, examining the quality of the environment in terms of financial development, globalization, and urbanization necessitates additional attention and research Destek and Sinha (2020)
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