The Impact of Labor, Capital, Energy and Income Growth on Environmental Degradation in Selected Developed Countries

Abstract

This study observes the persuade of labour force, capital formation, energy use, urbanization and income growth on environmental degradations and confirm the EKC with Consumption of energy in selected developed nations using the panel data during the time period 1995 to 2021. The estimated outcomes of the paper illustrate that when use of energy increases the environmental quality improves. The association between income growth and carbon emission is negative and statistically significant in the long run while, positive in the short run in case of selected developed countries. In long-term labour force and capital formation has positive influence on carbon emanation. Carbon emissions initially rise as consumption of energy rises in the long-term, but after a particular position, it starts reduce. This study suggests that environment can be improved by income growth in the selected developed countries. Controlling urbanization development will allow for a reduction in carbon emissions while enhancing agricultural practices. To reduce carbon emissions, energy usage should be effectively managed and optimized. Furthermore, direction of environmental degradation can be reduced by income growth with optimal use of capital and labor to achievement of better climate conditions.