Environmental Kuznets Curve Hypothesis Research Articles

Investigating the EKC hypothesis with disaggregated energy use and multi-sector production.

The Middle East and North African (MENA) economies experienced substantial economic fluctuations due to variations in carbon emissions and energy use. For this purpose, the present study examines the factors influencing carbon emissions in MENA economies, particularly economic growth and energy use. To this end, this study disaggregates economic growth into three sectors (agriculture, industry, and services) and energy use into renewable and non-renewable, and examines their environmental impacts by including the roles of urbanization and trade openness in the environment Kuznets curve (EKC) framework. This study uses panel data from 16 MENA countries over the period 1990-2018 to estimate the short-run and long-run coefficients and the Granger causality between the variables. The empirical results using the Mean Augmented Group (AMG) and the Common Correlated Effects Mean Group (CCE-MG) revealed that (i) the signs of GDP per capita and its squared scores validate the EKC hypothesis only at the aggregate level; (ii) the coefficients of sectoral GDP show that the industry and services sectors have the highest contributions to carbon emissions in the MENA region; (iii) non-renewable energy increases emissions, whereas renewable energy lessens them. The outcomes of the Granger causality confirm (i) a bidirectional relationship between emissions and per capita GDP as well as sectoral GDP, between CO2 emissions and renewable energy, and between per capita GDP and renewable and non-renewable energy however; (ii) a unidirectional causal impact running from non-renewable energy to CO2 emissions is found in the short term. The study calls for effective policies to focus on curbing emissions in secondary and tertiary economic sectors by growing the part of renewable energy in the total energy mix.

Dynamic effects of energy consumption, economic growth, international trade and urbanization on environmental degradation in Nigeria

MotivationA crucial but difficult goal for governments and policymakers in Nigeria in recent years has been the sustainability of economic growth. This goal must be accomplished by regulating or lowering greenhouse gas emissions, which calls for switching to a low- or zero-carbon production system. The lack of in-depth empirical studies on the environmental impact of socioeconomic variables on Nigeria and a number of unresolved issues from earlier research are what led to the current study. ObjectiveThis study fills an important empirical gap by investigating the existence of an Environmental Kuznets Curve hypothesis and the long and short-run dynamic impact of socioeconomic variables on ecological sustainability in Nigeria. Data and methodAnnual time series data covering the period 1980 to 2020 and the Autoregressive Distributed Lag technique in the presence of structural breaks were adopted for this study. ResultsThe empirical findings support the existence of environmental Kuznets curve hypothesis for Nigeria in the long and short run. Energy consumption and total import exacerbates environmental deterioration in the long and short run, whereas total export improves environmental quality in the long and short run. Financial development, which contributed to a conspicuous decrease in the level of environmental destruction in the long run, escalated it in the short run. In contrast, urbanization caused a significant increase in environmental damage in the long run but motivated a decrease in biodiversity loss in the short run. ImplicationsThe government, policymakers, and all energy stakeholders should take additional measures to ensure the implementation and diversification of energy sources to accommodate more renewable energy sources that emit less carbon in order to promote efficiency in Nigeria's production processes and lower carbon emissions. In order to promote the production and trade of environmentally friendly goods, they should also revise and strengthen environmental policies. With affordable, dependable, and sustainable energy use for higher productivity and inclusive growth, Nigeria will be able to achieve its long-term development goals of good health and wellbeing.

Economic Complexity and Renewable Energy Effects on Carbon Dioxide Emissions: a Panel Data Analysis of Middle East and North Africa Countries

AbstractWith the rising economic complexity of the world economy, applied research has been focusing on the economic complexity-environmental quality nexus. Many of the Middle East and North Africa (MENA) countries and Turkey show relatively low economic complexity with undiversified product spaces. The present study is thereby motivated to investigate the economic complexity-environmental quality relation for the MENA countries and Turkey. Using panel data for eighteen MENA countries and Turkey over the period 1990–2020, the fully modified ordinary least squares method of estimation is employed in two separate models, and Granger causality tests are performed. Each model includes the relation of economic complexity to carbon dioxide (CO2) emissions, one form of energy (renewable or non-renewable), population density and variables to validate the environmental Kuznets curve (EKC) hypothesis. In model (1), a negative and statistically significant renewable energy consumption has a mitigating effect on CO2 emissions, though economic complexity and its interaction with renewable energy consumption are not statistically significant. In model (2), a positive and statistically significant non-renewable energy indicates that increased fossil fuel reliance increases CO2 emissions (deteriorating environmental quality), while a negative and statistically significant economic complexity and population density reduce CO2 emissions (improving environmental quality), respectively. The EKC hypothesis is validated for the MENA countries and Turkey in both models (1) and (2), and Granger causality test results are given. Among the key policy implications are that the MENA countries and Turkey must recognize that increasing GDP and industrialization must be coupled with moving from less- to more-knowledge-based structures.

Maliye Politikalarının Çevresel Bozulmaya Asimetrik Etkisi: Türkiye için NARDL Modelinden Kanıtlar

In this study, an analysis based on the NARDL model has been conducted using data from 1970 to 2020 to investigate the impact of fiscal policy tool, public expenditures, on environmental degradation. This approach has the capability of dissecting the effects of expansionary and contractionary fiscal policies related to public expenditures on environmental degradation and provides coefficient estimations for both short and long run. The results suggest that expansionary fiscal policy leads to a reduction in CO2 emissions in the long run. In contrast, it has been observed that contractionary fiscal policy does not have a significant impact on CO2 emissions in the long run. Accordingly, it has been determined that public expenditures in Turkey do not contribute positively to environmental pollution. Moreover, although an increase in income is associated with increased CO2 emissions in the long run, the validity of the Environmental Kuznets Curve hypothesis is not confirmed for Turkey. Fossil fuel consumption, as theoretically anticipated, raises CO2 emissions in both the short and long run. Thus, prioritizing the use of renewable energy sources becomes a necessity to mitigate environmental degradation. Additionally, public expenditures have no short-run impact on CO2 emissions. The study is believed to make an important contribution by addressing the gap in the literature through the application of an asymmetric approach to analyze the influence of public expenditures on environmental pollution in the context of Turkey. Furthermore, the obtained findings for Turkey are considered valuable for both researchers and governmental authorities. It is imperative to pay heed to the implementation of environmentally conscious and pollution-reducing fiscal policies. Furthermore, the promotion of renewable energy utilization should be emphasized to enhance environmental quality.

Analyzing the nexus between tourism and CO2 emissions: the role of renewable energy and R&D

This study aims to investigate the relationship between tourism development, renewable energy consumption (REN), research and development (R&D) expenditure, and CO2 emissions in 12 emerging markets and middle-income Europe spanning 1999–2020. We applied the panel autoregressive distributed lag and the Driscoll–Kraay estimator to determine the relationship between variables. According to both estimators’ results, a U-shaped relationship exists between economic growth and CO2 emissions. This result indicates that the environmental Kuznets curve hypothesis is invalid in these countries. Furthermore, REN and R&D contribute to decreasing CO2 emissions and stimulating sustainable development. However, the impact of tourism development on CO2 emissions is found to be negative in panel autoregressive distributed lag but positive in the Driscoll and Kraay estimator for fixed and random effects. Moreover, the Dumitrescu and Hurlin panel causality test reveals a two-way causal relationship between R&D and CO2 emissions and a one-way causal linkage running from economic growth, the square of economic growth, and tourist arrival to CO2 emissions. Overall, our results prove the existence of a relationship between international tourism and CO2 emissions. Furthermore, our results suggest some policy recommendations for policymakers to reduce CO2 emissions through REN, R&D, green economic development, and establishing an ecologically friendly tourism policy.

The Impact of Tourism on Energy Consumption: A Sectoral Analysis for the Most Visited Countries in the World

Tourist activity has strategic importance in the global economy. Nevertheless, the tourism activities are linked to increased emissions, due to the sector’s energy intensity, especially in the transport and commercial sectors. The aim of this study is to analyze the relationship between final energy consumption in the whole economy, the transport, commercial and public services sectors, and the tourist activity in the 15 countries with the highest number of international tourist arrivals in the world, in 2000–2019 period. The Energy–Environment Kuznets Curve (EKC) hypothesis extended with tourism has been tested. Obtained results show non-linear relationships between energy consumption and production levels. There is evidence in favor of the energy EKC hypothesis, and in favor of an inverted N-shaped relationship for transport and commercial and public services sectors. The results also show a positive, increasing relationship between energy consumption and tourist arrivals for the whole economy. However, there is some evidence of the tourism energy EKC hypothesis when considering the transport, commercial and public services sectors. Therefore, economies of scale are observed in these sectors. Accordingly, it is highly advisable to increase the economies of scale, coupled with a greater awareness on the use of renewable energy. Negative relationships are found between energy consumption and tourism receipts. Therefore, it is advisable to establish policies that encourage high quality tourism to control the economy’s energy consumption.

Pathways for regions to achieve carbon emission peak: New insights from the four economic growth poles in China

Regional synergy is critical to achieving High Quality Development (HQD) and reducing emissions in China. Economic growth poles (EGPS), namely Beijing-Tianjin-Hebei, the Yangtze River Delta, Guangdong-Hong Kong-Macao, and Cheng-Yu, are typical examples of regional synergy in China. It is critical to explore whether the pulling power of the EGPS to other regions can accelerate China's carbon peaking. First, this study applies the Miller-Round model to measure the spillover effects of the EGPS and selects the radiation-driven areas. Second, based on the environmental Kuznets curve hypothesis, a panel smoothing transformation model is applied to explore the relationship between regional HQD and carbon emissions. Finally, under different scenarios, the inter-regional spillover effect is used to explore the path to achieving the carbon emissions peak. The results show an inverted U-shaped relationship between carbon emissions and HQD. Additionally, with the spillover pull of the EGPS, the peak carbon emission time of all provinces is earlier by 1–6 years in different scenarios, and it can promote Ningxia, Qinghai, Gansu, Guizhou to achieve a carbon peak by 2030. However, the pulling effects of Shanxi, Shaanxi, Jilin, and Guangxi require further improvement. Therefore, the policy implications of increasing inter-regional production efficiency, improving innovation levels, and using renewable energy are proposed to improve the level of HQD, thus achieving a carbon peak. Moreover, improving the industrial linkage between the EGPS and other regions would also be effective. The industrial structure promotes the cultivation of the EGPS in Cheng-Yu and strengthens regional integration in the western region.

Reinvestigation of the validity of the EKC hypothesis extended with energy: A time-varying analysis for the United Kingdom

The Environmental Kuznets Curve (EKC) hypothesis has been extensively analyzed as a long-term relationship between the economic development stages and related environmental impacts. Most of the existing literature has however produced unreliable results as extensive databases have been used without considering the length of the time span. In this study, the EKC hypothesis is re-investigated for the United Kingdom for the time period 1850–2018. The objective is to conduct an innovative methodological approach that, contrary to the conventional estimation methods, uses time-varying techniques⸺the time-varying cointegration test of Bierens and Martins (2010) and the time-varying causality test of Shi et al. (2018, 2020)⸺to account for the incidence of unexpected historical events, such as socio-economic and policy crises. Results show that, for the considered years, the EKC hypothesis is valid for the UK. In addition, by including income, carbon dioxide emissions, and energy consumption data, the present study also analyses the environmental impacts of energy use and the environmental quality changes that have taken place during the considered period of time. This result proves that energy consumption pollutes the environment significantly; however, the magnitude of its impact can be affected by many shocks. According to the empirical findings, policymakers could adhere to current policies because environmental quality has started to increase for several decades in the United Kingdom. The employed methodology, and the related results, can support the definition of policies and the development of additional research initiatives.

Exploring the dynamic effect of economic growth on carbon dioxide emissions in Africa: evidence from panel PMG estimator

The relationship between economic growth and environmental pollution continues to attract significant research interest for researchers, practitioners, and policymakers all over the globe. Theoretically, the environmental benefit of economic growth should be greater than its negative externality with higher level of development. However, from the African perspective, countries with higher economic performances often face several environmental challenges, which raises the doubt whether economic growth helps or constrains environmental quality improvement. Under the environmental Kuznets curve (EKC) hypothesis, this study re-examined the effect of economic growth on CO2 emissions conditional on the dynamics of urbanization, renewable energy, and good governance across 47 African countries using panel data from 1996 to 2019. We employ panel cointegration tests to establish whether there is a long-run equilibrium relationship among our variables. We also apply pooled mean group ARDL (PMG-ARDL) techniques and the Dumitrescu-Hurlin causality test to determine the long- and short-run effects of economic growth, urbanization, renewable energy consumption, and good governance on CO2 emissions. The results from the PMG estimator validate the EKC hypothesis since a 1% surge in GDP per capita increases emissions by 0.61% in the long run, while a 1% increase in its square decreases emissions by 0.03%. In the short-run, economic growth does not exercise any significant effect on emissions. Furthermore, results indicate a significantly negative and positive long-run effect of renewable energy and governance, respectively. Finally, our causality test shows bidirectional relationship between CO2 emissions and all the explanatory variables. Henceforth, we provided policy implications based on the study’s results.

The dynamic impact assessment of clean energy and green innovation in realizing environmental sustainability of G‐20

AbstractIn the context of the growth and development process, stability in environmental quality has remained a challenging issue to sustainable development, as several environmental problems, such as climate conditions, anthropogenic global warming, deforestation, and escalating degradation of water and air quality, depict a rising trend. In the contemporary materialistic paradigm, attaining a high economic growth rate while ensuring sustainable consumption of natural resources is impossible. The world needs to attain an economic growth rate that confirms sustainability in natural resource consumption and exploitation of resources introduced severe alert about the sustainability of such trajectory progress as an increase in economic growth upsurges natural reserve usage and energy demand, which leads to environmental deprivation. Both theoretical and empirical literature support that green or clean energy sources could significantly sustain environmental quality and foster economic growth. The recent literature assessed the role of green technology in promoting environmental sustainability. It emphasizes that green innovations are the most competent method to carry the competent use of resources, thereby reducing environmental degradation. Therefore, the main aim of this study is to analyze the impact of economic growth, clean energy, technological innovations, natural resources depletion, and green and sustainable technology on the environmental degradation of G‐20 nations in the frame spanning from 1992 to 2018. The results of cross‐sectional‐autoregressive‐distributed lag (CS‐ARDL) model estimation indicate the presence of a long‐run association between economic growth, number of filled applications for patents, development of environment‐related technologies as a percentage of all technologies, natural resources rents (NRR) as a percentage of GDP, renewable energy consumption, trade openness and environment degradation of G‐20 nations. This study re‐confirmed the Environmental Kuznets Curve (EKC) hypothesis for selected nations. Further, the study's findings revealed that cleaner energy and technological innovations, mainly green technology, play a significant role in sustaining the environmental conditions of these selected countries. Moreover, the degree of natural resource depletion directly impacts environmental degradation (CO₂ emission, total greenhouse gases emission and ecological footprints) in selected nations. The study underscores the importance of promoting clean energy, green technology, and sustainable practices to balance economic growth and environmental preservation and provides policymakers in G‐20 nations with valuable policy recommendations.

The impact of clean energy consumption, green innovation, and technological diffusion on environmental sustainability: New evidence from load capacity curve hypothesis for 10 European Union countries

AbstractToday, when climate change and environmental degradation are experienced, environmental sustainability comes to the fore. The most important component of environmental sustainability is undoubtedly technology and innovation. This study examines the effects of clean energy consumption, green innovation, and technological diffusion on environmental sustainability from 1990 to 2018 in selected European Union countries. This relationship has been frequently examined in the literature within the framework of the environmental Kuznets curve (EKC) hypothesis. The number of studies examining it within the load capacity curve (LCC) hypothesis framework is negligible. This study aims to fill the gap in the literature in the context of examining the relationship within the framework of the LCC hypothesis. For this purpose, Westerlund's (2008) panel cointegration test was applied, and cointegration was determined in the LCC model. Three different long‐term estimators, namely rCCE, DCCE, and AMG, were used to test the validity of the hypothesis. Although the results obtained for the entire panel say that the LCC hypothesis is not valid, evidence for the existence of the hypothesis has been identified in the country‐based results. Accordingly, the LCC hypothesis is valid for Denmark, France, Portugal, and Spain. Overall, green innovation and technological diffusion are essential to encourage the spread of environmentally friendly practices and to leave a more livable world for future generations.

Time-varying disaggregation of the income-emissions nexus: New evidence from the United Kingdom

This paper's objective is to investigate the validity of the Environmental Kuznets Curve (EKC) hypothesis utilizing three unique approaches in this era of accelerating climate change and economic volatility. The first step is to introduce and employ a new cointegration test which allows smooth and sharp structural changes through a dummy variable and a Fourier function. Using a time-varying causality approach, the second stage is to assess the EKC hypothesis's validity for each year of a given period, as opposed to the entire period. The third stage is to conduct time-varying analyses not only of the effect of Gross Domestic Product or aggregate income on environmental degradation but also of the effects of the four major economic units' incomes, namely those of the government, non-financial corporations, households, and the rest of the world. This research derives three conclusions using the United Kingdom as a case study from 1830 to 2016. The impacts of aggregate income and the incomes of the three economic units on carbon emissions are consistent with the EKC hypothesis. Second, each of these effects occurs at different times. Thirdly, the EKC hypothesis regarding the association between the nation's trade income and carbon emissions cannot be validated. To provide policymakers with a dynamic, unit-specific, and effective strategy for mitigating environmental degradation, the paper proposes testing the EKC hypothesis for each year over a specific time period, as well as for the effects of both aggregate income and the disaggregate income of four major economic units.

¿Podría el crecimiento económico impulsar a Costa Rica a reducir su degradación ambiental?: Curva de Kuznets Ambiental (1990-2021)

According to the goals proposed and ratified by the Paris Agreement on 2015 and by the United Nations Conference on Climate Change in 2021, the world should attempt to maintain the global average temperature well below 2° above pre-industrial levels in the long run and to restrain the temperature increase to 1.5°C above pre-industrial levels. One country undertaking bold and charismatic environmental action is Costa Rica. Since the late 1960s, this country has implemented both avant-garde policymaking and practices in the environmental field.As a means of contributing with the analysis and understanding of how to determine this country’s effectiveness and efficiency in its environmental efforts, this research aims to analyze the relationship between Costa Rica’s CO2 emissions per capita with economic growth, expressed via Gross Domestic Product (GDP) per capita (constant 2015 dollars). Thus, the Environmental Kuznets Curve (EKC) hypothesis will be tested to determine if Costa Rica is a good example. Using the database from the World Bank’s (2023) World Development Indicators and from Global Change Data Lab (2023) as a basis of analysis and through the application of quantitative correlational analysis with a type of longitudinal nonexperimental design with time-series data from the year 1990 to the year 2021, it is argued that increases in CO2 emissions per capita are influenced positively with a statistical significance at a 5% error margin by GDP per capita (constant 2015 US dollars), and by energy consumption per capita. Alternatively, CO2 emissions per capita are influenced negatively with statistical significance at 5 % error margin respectively by GDP per capita squared (constant 2015 US dollars) and land use change per capita. However, these results cannot be confirmed with reliability and robustness because of the ambivalence and ambiguity present in the proposed model as a consequence of the likelihood of the presence of multicollinearity among the variables and the lack of normality of the dependent variable.  Despite the initial promising results of a high goodness-of fit test, an acceptable F-statistic, the lack of heteroscedasticity, and an acceptable result showing no autocorrelation presence, the hypothesis of this study cannot be answered affirmatively. Despite these results, there is room for more research to confirm if the EKC hypothesis continues to be applicable in this country. This study could serve as a reference point for decision-makers regionally and internationally to guide their local environmental efforts towards concrete achievements for obtaining a clean planet in the future.

Investigating the environmental Kuznets curve hypothesis for CO2 emissions in Nordic countries

ABSTRACT This paper examines the environmental Kuznets curve (EKC) hypothesis in Nordic countries (Denmark, Finland, Iceland, Norway and Sweden) over the period 1981–2018. The link between economic growth and carbon dioxide (CO2) emissions is analysed. The study includes causality analysis and controls for cross-sectional dependence (CSD), slope heterogeneity, stationarity and cointegration patterns. Estimations validate the EKC hypothesis for Denmark and Iceland, but not for Norway and Sweden. Finland data show no significantly visible trend.

Moderating impact of FDI on the growth-environment nexus in the pre-COVID-19 eras

This paper aims to investigate the moderating presence of FDI in the nexus between economic progression and quality of environment in 115 countries, and various income panels of countries from 1992 to 2019, based on a theoretical underpinning of the Environmental Kuznets Curve (EKC). The results reveal a significant positive influence of energy consumption on CO2 discharges across all income panels. The interaction between FDI and square of GDP leads to a decrease in CO2 emissions for low and lower-middle income countries, whereas a drop in PM2.5 discharges is distinctively recorded for low, lower middle, high income, and overall income levels. Likewise, the interaction of FDI with manufacturing growth exhibits a negative influence on CO2 emissions reduction in both low and lower-middle income economies, and a reduction in CH4 discharges for upper-middle, high income, and overall income levels. All these results support the EKC hypothesis and offer a useful insight for countries that intend to pursue green economic growth with due consideration for energy consumption and environmental pollution.

Analyzing the EKC hypothesis for technologically advanced countries: The role of ICT and renewable energy technologies

International initiatives, such as the Paris Climate Conference and the COP26 conference, have highlighted the role of technology in fighting environmental problems. However, it is uncertain whether technologies are beneficial in curbing carbon dioxide (CO2) emissions. To find an answer to this question, the study focuses on four technologically advanced countries (United Kingdom, Switzerland, Norway, Denmark), considers information and communication technologies (ICT), renewable energy technologies (RRD), and economic growth in relation to environmental degradation, and tests the validity of the environmental Kuznets curve (EKC). The study applies Fourier approaches and uses data for the period 1989–2020. In this way, the study defines that (i) ICT and RRD are cointegrated with CO2 emissions; (ii) ICT mitigates environmental degradation in the United Kingdom, Denmark, Switzerland, and Norway; (iii) RRD expenditures, however, are not effective in reducing CO2 emissions; (iv) the EKC hypothesis is also validated for the countries studied. Thus, the study highlights the need for countries to rely on further use of ICT and income growth as effective policy instruments to mitigate CO2 emissions rather than RRD.

Impact of banking development and renewable energy consumption on environmental sustainability in Germany: Novel findings using the bootstrap ARDL approach

This study examines the effects of banking development, economic growth and consumption of renewable energy on carbon dioxide (CO2) emissions and load capacity factor (LCF). Previous empirical studies have assessed the interrelationship between banking development and CO2 emissions; however, these studies have ignored supply-side ecological issues. To overcome this issue, this study evaluates the effect of banking development on LCF, which is considered to be one of the most comprehensive ecological proxies to date, including both biocapacity and ecological footprint (EF). Using the bootstrap autoregressive distributed lag model, the study reveals that renewable energy improves ecological quality in Germany. The results of the investigation demonstrate that the environmental Kuznets curve hypothesis is valid in Germany using CO2 emissions and LCF indicators. Furthermore, this study demonstrates that banking growth and renewable energy in Germany correlate with improved environmental quality. These findings provide policymakers with important insights. In this context, the study advises the banking industry and government authorities to leverage banking expansion to support green energy to achieve the national goal of zero CO2 emissions by 2045.

Can increased economic complexity and reduced carbon emissions of the logistics industry go hand in hand? Evidence from countries along the Belt and Road

At present, the main focus of research lies in examining the connection between economic complexity and carbon emissions as a whole, but there is a scarcity of quantitative investigations on the link between the above variables within specific industries. Therefore, this study introduces economic complexity as a new variable to build a panel model within the traditional Environmental Kuznets Curve framework. Based on the data of the countries along the Belt and Road from 1998 to 2018, we used the Granger causality test to examine the causal relationship between variables, and use the Fully Modified Ordinary Least Square and Dynamic Ordinary Least Square methods to estimate the coefficients of variables. The key factor linking economic complexity and carbon emissions in the logistics industry is technology innovation Economic complexity can explain and predict the changes in carbon emissions of logistics industry more reasonably, and the relationship between them in line with the environmental kuznets curve hypothesis. Only high-income countries can increase economic complexity while reducing carbon emissions of logistics industry. Based on the empirical analysis, it is suggested that upper-middle income and lower middle-income countries can formulate relevant policies and regulations, and high-income countries can improve the relevant policies and regulations to promote the reduction of carbon emissions of the logistics industry. Studying the impact of economic complexity on carbon emissions in the logistics industry can help better predict and respond to the impact of climate change on the logistics industry.

Analyzing the non-linear association between urbanization and ecological footprint: an empirical analysis.

Due to urbanization's substantial impact on economic development and environmental quality, particularly in emerging nations, the subject has attracted major attention in recent years. Urbanization increases infrastructure, transportation, and high energy consumption demand, leading to increased environmental degradation. Therefore, this study examines how urbanization has affected environmental degradation in Pakistan using yearly data from 1970 to 2020. A non-linear autoregressive distributed lag (NARDL) model is applied to study the asymmetric impact of urbanization on ecological footprint per capita. The results show that urbanization is asymmetrically associated with environmental degradation. Positive changes in urbanization led to increased environmental degradation, while negative changes in urbanization led to a decline in environmental degradation in Pakistan. Foreign direct investment and industrial production are positive and significant factors of environmental degradation, while trade openness and money supply are negatively linked with environmental degradation in Pakistan. Economic growth shows a positive link, while economic growth square shows a negative link with environmental degradation. These findings also confirm the environmental Kuznets curve (EKC) hypothesis in Pakistan. It is suggested that the urbanization threshold should be analyzed to determine where environmental degradation tends to decline, and less polluting technology and renewable energy resources should be encouraged to reduce environmental degradation in Pakistan.

The impact of energy security on environmental degradation: new evidence from developing countries.

This study investigates the energy security and income roles in testing environmental Kuznets curve (EKC) for developing countries from 1990 to 2019. The panel quantile regression approaches are employed to examine the relationship between the variables, considering that income and energy security effects on carbon emissions may vary across distributions. Findings revealed that the EKC hypothesis was inconsistent at low and high quantiles when estimating energy availability, affordability, and acceptability. The validity of inverted U-shaped EKC is supported at high quantiles for energy affordability and accessibility in developing countries. However, given the energy accessibility and acceptability, the EKC hypothesis becomes invalid in developing countries. Notably, developing countries have yet to progress toward achieving energy security as a switch component to low carbon emissions. This study contributes to the literature by revealing the effect of availability, accessibility, affordability, and acceptability of energy security on carbon dioxide emissions (CO2). Thus, it suggests implications for improving environmental quality in developing countries by enhancing energy security. Diversifying energy sources with nuclear, renewable, and developing technologies reduces dependence risks on a single source while improving efficiency through technology and demand management lowers carbon emissions and strengthens energy security. Beyond energy security, this study emphasises sustainable urban planning to promote compact development, effective transportation, and green infrastructure to reduce energy use and improve environmental sustainability, ultimately reducing carbon emissions.