Environmental Kuznets Curve Relationship Research Articles

The Economic Growth and Environmental Kuznets Curve Hypothesis Evolution and Assessment, Causes and Prospective: A Review of Literature under a Critical Analysis

Based on econometric estimates, recent research has shown an inverted-U link between environmental quality indices and income, known as an environmental Kuznets curve. This may affect economic and environmental policies. This paper examines this research as a whole and finds that unequivocal evidence for an environmental Kuznets curve relationship is very scant; that important indicators show a monotonically increasing relationship; and that even if there is a relationship, most of the world's population is still on the increasing section of the curve, so income growth based on this relationship would result in con In conclusion, the income—environment link is still problematic and requires deliberate environmental policy if future income increase is to be sustainable. If the environmental Kuznets curve is correct, economic growth in both developed and developing nations may prevent environmental issues, which are largely caused by economic development. Global environmental talks are biassed to follow the environmental Kuznets curve theory. Environmentalists say economic growth has done a lot of damage to the environment, especially with higher energy demand, but economists say it will solve these issues in the long run. Since the cause is the remedy, the link between environmental change and economic development has broken. The environmental Kuznets curve compares pollution indicators to per capita income. Economic expansion first causes environmental pollution, but as incomes rise, it improves the environment. Environmental economics examines water quality, air pollution, solid waste, global warming, and other environmental concerns' costs and benefits. 1.1. Key words: Environmental Kuznets Curve, Economic Growth, Economic Structure, Equation of EKC, Level of Environmental Degradation, Key Takeaways.

Exploring the influencing factors of environmental deterioration: evidence from China employing ARDL–VECM method with structural breaks

PurposeThe environmental deterioration has become one of the most economically consequential and charged topics. Numerous scholars have examined the driving factors failing to consider the structural breaks. This study aims to explore sustainability using the per capita ecological footprints (EF) as an indicator of environmental adversities and controlling the resources rent [(natural resources (NR)], labor capital (LC), urbanization (UR) and per capita economic growth [gross domestic product (GDP)] of China.Design/methodology/approachThrough the analysis of the long- and short-run effects with an autoregressive distributed lag model (ARDL), structural break based on BP test and Granger causality test based on vector error correction model (VECM), empirical evidence is provided for the policies formulation of sustainable development.FindingsThe long-run equilibrium between the EF and GDP, NR, UR and LC is proved. In the long run, an environmental Kuznets curve (EKC) relationship existed, but China is still in the rising stage of the curve; there is a positive relationship between the EF and NR, indicating a resource curse; the UR is also unsustainable. The LC is the most favorable factor for sustainable development. In the short term, only the lagged GDP has an inhibitory effect on the EF. Besides, all explanatory variables are Granger causes of the EF.Originality/valueA novel attempt is made to examine the long-term equilibrium and short-term dynamics under the prerequisites that the structural break points with its time and frequencies were examined by BP test and ARDL and VECM framework and the validity of the EKC hypothesis is tested.

Disentangling the deforestation-environmental crime nexus in Latin America

Deforestation and natural resource extraction are well-known threats to biodiversity conservation, environmental justice, livelihoods, ecosystem services and can even result in crimes to, and harassment of, environmental defenders. Such punitive actions against environmental defenders can influence both economic development and forest conservation efforts. Yet, little is known about this nexus and the complex relationships between environmental impacts, such as deforestation, and environmental crimes across space and time in many regions such as Latin America. We explored these complex relationships using a database of environmental crimes, threats, and harassment (ECTH) affecting environmental defenders, as well as forest loss data, and municipal-level socioeconomic indicators for nine Latin American countries over a period of eleven years. We found that as deforestation increased, there was a large increase in ECTH episodes related to agricultural activity, while in highly populated municipalities there were more ECTH episodes related to energy production, transportation, and urbanization activities. Overall, the percentage of annual deforestation had a strong influence, which varied according to municipal wealth, population density (PD), and geographical context. Statistically significant increases in violent crimes were found with increasing deforestation, but only in Honduras, Guatemala, and Mexico, and in municipalities with lower population densities. Conversely, higher income, more populated municipalities were characterized by judicial harassment, as opposed to violent crimes, indicating a type of Environmental Crime Kuznets Curve relationship. A structural equation model where deforestation was driven by the number of ECTHs, as well as percent forest area, PD, latitude, and country showed that the number of ECTH events and country were significant drivers of deforestation. Understanding these complex social-ecological dynamics shows the profound effects that deforestation and unsustainable, and unjust, environmental impacts and conflicts can have across forests and ecosystems of the Global South in terms of social justice and conservation, and thus merits increased protection of environmental defenders in Latin America.

Future Projections of Global Plastic Pollution: Scenario Analyses and Policy Implications

Plastic pollution has attracted the attention of the media, public, and government worldwide. Analysis of the inverted U-shaped environmental Kuznets curve (EKC) relationship between economic development and plastic pollution is crucial because economic growth is a critical driver of plastic pollution. In this study, for the first time, we (i) used the stochastic impacts of regression on population, affluence, and technology (STIRPAT) model to investigate the EKC relationship; (ii) performed a comprehensive analysis of the effects of sociodemographic factors on plastic pollution; and (iii) used a panel dataset of 128 countries for empirical analyses. The STIRPAT model was used to conduct scenario analyses to explore the impacts of sociodemographic driving forces on future plastic pollution by 2050 on a national (217 countries) and global scale. The empirical results confirmed the EKC relationship and revealed that changes in population structure and urbanization could substantially affect plastic pollution. Global plastic pollution was projected to reach 66.1 MT/y by 2050 under the business-as-usual scenario. Low-income countries and sub-Saharan Africa are projected to become major contributors to plastic pollution, leading to a global trend of increasing plastic pollution. These findings will help policymakers identify targets to effectively reduce future global plastic pollution.

The effects of environmental innovations and international technology spillovers on industrial and energy sector emissions – Evidence from small open economies.

Environmental innovations hold promise for cutting greenhouse gas (GHG) emissions, but most technology investments are made in large technologically leading countries. Thus, emission reductions in small open economies, such as the Nordic countries, depend on not only domestic technological development, but also technology spillovers from foreign countries. The present study analysed how the development of climate change technologies affected the Nordic countries' GHG emissions from the industrial and energy sectors during a particular time frame. Consequently, while controlling for economic growth and population, domestic and foreign technological development's effects on industrial and energy sector GHG emissions were examined from the 1990–2019 period. The results revealed that both domestically developed environmental technologies and technology spillovers from foreign economies mitigated GHG emissions from these nations' energy and industrial sectors, thereby providing an efficient pathway to achieving sectoral environmental sustainability. In particular, domestic environmental technologies were found to be more efficient in driving environmental sustainability in the industrial sector, whereas impacts from domestic and foreign technological development did not differ significantly in the energy sector. Furthermore, given that economic growth plays a vital role in GHG emissions, environmental Kuznets curve (EKC; inverted U-shaped and U-shaped) relationships have been observed in the energy and industrial sectors, respectively. This suggests that the examined countries' industrial sectors have more environmental quality hurdles to overcome.

Spatial and temporal evolution of air pollution and verification of the environmental Kuznets curve in the Yangtze River Basin during 1980—2019

ABSTRACT Continuously high concentrations of haze pollution can hinder urban economic development. In order to improve the quality of the environment in the Yangtze River Economic Belt, it is necessary to investigate the spatio-temporal characteristics and impact factors of smog. This study, relying on multi-source remote sensing data, conducted a comprehensive study on the concentration of haze pollution based on long-term data, multiple spatial scales and pollution indicators. The results showed that the concentrations of seven air pollutants (PM2.5, SO4, SO2, BC, OC, SS and dust) in the Yangtze River Basin appeared to first increase and then decreased from 1980 to 2019. Dust pollution and sea salt pollution were concentrated in the upper reaches of the Yangtze River and the coastal areas of the Yangtze River Delta, while other pollutants were higher in the Sichuan Basin and northeast of the Yangtze River. Of the socioeconomic factors, the significance of different factors on pollutant concentration was obviously different. In addition, the environmental Kuznets curve relationship between economic gain and air pollution depended on the type of pollutant, and there were certain regional differences. This study provided a scientific basis for considering innovations in haze control in the urban agglomeration of the Yangtze River Economic Belt.

Impact of economic growth on the changes in forest resources in Inner Mongolia of China

Balancing the relationship between forest resources and economic growth is crucial for achieving sustainable development in China. Inner Mongolia, with its unique geographical environment and relatively underdeveloped economy, exhibits distinctive patterns in its forest resources development and changes. This study investigates the impact of economic growth on forest resources in Inner Mongolia using time-series data from 1980 to 2018 and the cubic curve regression model based on the Environmental Kuznets Curve (EKC) hypothesis. The results reveal an inverted N-shaped EKC relationship, with the forest coverage rate undergoing a “decline-up-decline” evolution process, characterized by turning points 1984 and 2015, and the forest stock volume exhibiting a “decline-up” evolution process with a minimum turning point around 1999. Remarkably, the forest stock volume continues to increase at present and over a foreseeable future. Furthermore, the study finds that population density has a negligible effect on the reduction of forest coverage rate in Inner Mongolia. Lastly, the paper offers policy suggestions to promote the sustainable development of forest resources in the region.

Unleashing the nexus among urban land use, national physical health inputs and environment: an environmental sustainability paradigm.

Nowadays, the contemporary ecological environment has a significant impact on human survival and development. Consequently, an in-depth examination of the link between humans and nature has significant practical significance and aspirational appeal. This research analyzes provincial panel data from 2011 to 2019 using an empirical model to determine the relationship between urban land use, the ecological environment, and national physical health inputs in China. The results indicate that (1) urbanization and air pollution do not have an "inverted U-shaped" traditional environmental Kuznets curve relationship, but rather a significant "positive U" relationship; (2) urbanization and environmental management do have an inverted U-shaped classical environmental Kuznets curve relationship; (3) GDP per capita and infrastructure have a negative impact on air quality and environmental quality, and strict environmental rules can improve air quality and green amenities; (4) national physical health investment has a substantial moderating effect on the relationship between urban land use and the ecological environment.

Sustainable environment quality: moderating role of renewable energy consumption in service sector for selected HDR listed countries.

Considering environmental deterioration, an emerging global problem, this study is aimed at determining the impact of the service sector economic activity on environmental quality from the environmental Kuznets curve (EKC) perspective and finding ways to reduce the carbon impact of service sector within the EKC relationship. This study proposes that renewable energy intensity in the economy plays an important role in reducing carbon print of service sector. This study is based on secondary data from 1995 to 2021 for different development-wise categorized country groups leading to 115 countries, according to the Human Development Report (HDR) on the Human Development Index (HDI). Estimated results using panel feasible generalized least squares (FGLS) have confirmed inverted U-shaped for very high HDI and medium HDI and U-shaped EKC for low HDI countries. This study is instrumental in confirming the moderating role of renewable energy in the service sector EKC. Policymakers can plan a gradual reduction of carbon footprint in the service sector by transitioning toward renewable energy.

Income, coal consumption, and the environmental Kuznets curve in Vietnam.

Concerns over adverse environmental effects have been raised due to Vietnam's reliance on fossil fuels like coal. At the same time, efforts are being made to boost the usage of renewable energy while simultaneously lowering greenhouse gas emissions. This study examines whether there is an environmental Kuznets curve (EKC) relationship between gross domestic product (GDP) and coal consumption in Vietnam by controlling for renewable energy consumption and oil prices from 1984 to 2021. We adopt the autoregressive distributed lag (ARDL) framework to explore a long-run level relationship between the study variables. We find that the GDP elasticity of coal demand has been greater than one since the 1990s and about 3.5 in recent years, indicating that the coal intensity of GDP has increased with economic growth. Thus, the GDP-coal consumption relationship resembles an upward-sloping curve instead of an inverted U-shaped EKC. This relationship is robust when we use other estimation methods and account for two additional independent variables. While a 1% rise in renewable energy consumption results in a 0.4% reduction in coal consumption, the impact of oil prices on coal consumption is negative but insignificant. The findings allow us to provide policy implications for the sustainable development of Vietnam: (1) more stringent policies, for example, enacting a carbon pricing scheme, are needed to reduce coal consumption; (2) policies should be implemented to make renewable energy sources more affordable; and (3) as facing high oil prices, the country should diversify its energy mix by expanding the usage of renewable energy.

Assessment of Water Quality to Economic Development: A Quantifying Environmental Kuznets Curve

The study intends to investigate the relationship between the growth of the economy and surface water pollutants in Tamil Nadu using the concept of the Environmental Kuznets Curve (EKC). The study used cross-sectional time series (panel data) data for water pollutants such as Dissolved oxygen and conductivity, BOD, Total Coliforms and Fecal Coliforms across 16 districts in Tamil Nadu for the period 2003–2019. The findings of the study revealed that there was no indication of an EKC for Dissolved Oxygen and BOD; instead, Dissolved oxygen has a monotonically declining relationship while BOD has a monotonically increasing relationship, and the first turning point is yet to be achieved for both the water quality indices. The relationship between income and conductivity found a U-shaped relationship with the turning point on Rs.131.98 billion. The existence of an Inverted U-shaped EKC relationship for Fecal coliforms and Total Coliforms with the turning point on Rs. 482.22 and Rs. 477.65 billion, respectively.

Spatial Pattern Evolution and Influencing Factors on Agricultural Non-Point Source Pollution in Small Town Areas under the Background of Rapid Industrialization.

To promote sustainable agricultural development in small town areas during rapid industrialization, it is important to study the evolution of agricultural non-point source pollution (ANSP) and its influencing factors in small town areas in the context of rapid industrialization. The non-point source inventory method was used to study the characteristics of ANSP evolution in 14 small town areas in Gongyi City from 2002 to 2019. Using the spatial Durbin model and geographical detectors, the factors influencing ANSP in small town areas were analyzed in terms of spatial spillover effects and the spatial stratified heterogeneity. The results showed a zigzagging downward trend of ANSP equivalent emissions over time. Spatially, the equivalent emissions of ANSP showed a distribution pattern of being high in the west and low in the east. There was a significant positive global spatial autocorrelation feature and there was an inverted "U-shaped" Environmental Kuznets Curve relationship between industrialization and ANSP. Affluence, population size, and cropping structure positively contributed to the reduction of ANSP. Population size, land size, and industrialization were highly influential factors affecting the spatial variation of ANSP and the interaction of these factors was bivariate or nonlinearly enhanced. This study provides a feasible reference for policymakers and managers to develop reasonable management measures to mitigate ANSP in small town areas during rapid industrialization.

Evolutionary relationship between the PM2.5 concentration and urbanization in the Yellow River Ecological and Economic Zone

The non-linear influence of urbanization on the PM 2.5 concentration and the driving mechanism is an important research topic for ensuring high-quality development of eco-economic zones. Based on the urban panel data for the Yellow River Ecological and Economic Zone from 2010 to 2019, spatial analysis and other methods were used to investigate the temporal and spatial differences, spatial evolution characteristics, and spatial correlation of the PM 2.5 concentration in the Yellow River Ecological and Economic Zone. In addition the environmental Kuznets curve (EKC) model was used to test the possible EKC relationships. The results showed that ① the PM 2.5 concentration in the Yellow River Ecological and Economic Zone varied widely from 2010 to 2019, and the annual average PM 2.5 concentration exhibited an overall fluctuating decreasing trend during the study period; ② the PM 2.5 concentration in the Yellow River Ecological and Economic Zone exhibited a spatial distribution that was high in the southeastern region and low in the other regions; ③ a positive spatial correlation existed between the PM 2.5 concentration and urbanization in the Yellow River Ecological and Economic Zone from 2010 to 2019; and ④ there was an N-type EKC relationship between the PM 2.5 pollution and urbanization in the Yellow River Ecological and Economic Zone. This study provides a new perspective for exploring the relationship between the PM 2.5 concentration and urbanization, an important reference for achieving environmental protection and sustainable urban development in the Yellow River Ecological and Economic Zone, and guidance for relevant departments to formulate PM 2.5 reduction policies.

IS AN AGING POPULATION GOOD OR BAD FOR THE ENVIRONMENT? PANEL EVIDENCE FROM 25 OECD COUNTRIES

Although CO2 emissions are purely global externalities and unlikely to be addressed by individual countries, empirical attention has typically been on the national level as national efforts have come in to plug the gap. The contribution of this study is therefore to investigate the effect of population aging on CO2 emissions, controlling for income and fossil fuel energy consumption, using panel data of 25 OECD countries during 1980–2015. After applying the panel cointegration approach such as fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS), we discover that population aging appears to reduce CO2 emissions, ceteris paribus. We also confirm the existence of the environmental Kuznets curve (EKC) relationship with an inverted-U curve, where CO2 emissions increase with income level until it reaches the estimated turning point and then starts to turn down. Other evidence shows that fossil fuel energy consumption increases CO2 emissions, other things equal. We believe that these findings present sustainable policy directions that may help solve the problem of population aging our world is dealing with today.

Does resource environment carrying capacity have a coercive effect on urbanization quality? Evidence from the Yangtze River Economic Belt, China

Understanding the relationship between resource environment carrying capacity (RECC) and urbanization quality (UQ) is of great significance for the new urbanization strategy. Different from previous studies which mainly focused on the coordination degree between urbanization and RECC, this study explores the environmental Kuznets curve relationship between UQ and RECC pressure by considering the nonlinear relationship between systems. The 11 sub-regions in the Yangtze River Economic Belt of China are selected as the study area. Results show that: (1) All 11 sub-regions witness UQ growth during the survey period of 2005–2017, among which Shanghai, Jiangsu, and Zhejiang take the three top positions. (2) The levels of RECC in the 11 sub-regions follow a gradual increasing trend from 2005 to 2017. Shanghai has the highest RECC value, and Guizhou province has the lowest RECC. (3) Except for Zhejiang, the other three sub-regions downstream of the Yangtze River present an N-shaped relationship between UQ and RECC pressure. The relationship for the three midstream regions presents a U shape, while that for upstream regions is either a U shape or an inverted N shape. These findings provide a valuable reference for governments to formulate effective measures for promoting the coordination of UQ and RECC in the Yangtze River Economic Belt. Moreover, new insights for conducting research on the relationship between UQ and RECC in other economic systems on a global level are given.

Spatial and temporal distribution characteristics of carbon emissions and their drivers in shrinking cities in China: Empirical evidence based on the NPP/VIIRS nighttime lighting index

Shrinking cities are a category of cities characterized by population loss, and the environmental problems of these cities are often neglected. Using panel data from 2012 to 2019, this paper investigates the spatial and temporal distribution characteristics of carbon emissions in shrinking cities in China and the driving factors. The results find that: (1) From 2012 to 2019, carbon emissions tend to increase in shrinking cities and decrease in non-shrinking cities. Due to earlier industrial development and ecological neglect, shrinking cities in Northeast China have higher carbon emissions than other regions. (2) Population size, industrial structure and public services promote the growth of carbon emissions in shrinking cities. The influence of living environment on carbon emissions in shrinking cities is not significant. There is an environmental Kuznets curve (EKC) relationship between economic level and carbon emission. (3) In shrinking cities, the increase in commuting time and distance due to spatial expansion promotes the growth of carbon emissions. Foreign investment decreases with the loss of population, which reduces carbon emissions. Technological progress gradually declines as investment in science and technology decreases, which makes carbon emissions grow. This paper clarifies the driving factors of carbon emissions in shrinking cities in China, and therefore, the findings of this paper have important reference value for the formulation of carbon reduction policies in shrinking cities in developing countries.

Impact of economic policy uncertainty, energy intensity, technological innovation and R&D on CO2 emissions: evidence from a panel of 18 developed economies

This study examines the impact of economic policy uncertainty (EPU) and ecological innovation on carbon (CO2) emissions in a panel of 18 developed countries from 2005 to 2018 using second-generation time-series panel data techniques. We use three robust long-run estimators, namely two-stage least squares (2SLS), panel generalised method of moments (GMM) and generalised least squares (GLS), to resolve heterogeneity, endogeneity and simultaneity in the panels. We further performed causality tests to ascertain the direction of causality between the variables. Our estimations suggest three innovative findings. First, economic growth contributes significantly and positively to CO2 emissions; however, this happens at an optimal level of growth after which carbon emission reduces, indicating that our sample exhibits an inverted U-shaped environmental Kuznets curve (EKC) relationship. Second, the impact of EPU on CO2 emissions is diverse: high levels of EPU have a significant influence on CO2 emissions only in high-polluting countries but not in low-polluting ones. Thirdly, research and development (R&D), foreign direct investment (FDI), urbanisation and renewable energy (RE) usage were also found to have varying effects on CO2 emissions. These findings highlight the heterogeneous relationship between carbon emissions and economic indicators even in advanced economies, as the pollution haven hypothesis (PHH) holds true in high-pollution countries while the pollution halo effect holds for low-pollution ones. A key policy implication of this work is that the quest to mitigate emissions should not be a one-size-fits-all approach because not every country’s urbanisation rate, FDI inflows, R&D and renewable energy consumption directly affect CO2 emissions in the face of economic policy uncertainties.

The circular economy and the optimal recycling rate: A macroeconomic approach

This paper studies the economic implications of the circular economy and recycling activities from a macroeconomic perspective. The paper incorporates the circular economy into an otherwise standard neoclassical dynamic general equilibrium linear economy model, in which the production function depends on capital, labor, and raw materials. Raw materials are a composite of natural resources (the linear economy) and recycled material (the circular economy). Waste is a function of consumption but can be incorporated back into production activities through recycling. We find the existence of a positive S-shaped relationship between the optimal recycling rate and economic development, indicating that increasing the circularity of the economy is a necessary condition to augment social welfare in a growing economy. The optimal recycling rate depends positively on the pollution damage and waste content of final consumption goods. Simulation of the model supports the existence of a steady-state Environmental Kuznets Curve (EKC) relationship between the stock of waste and the output in the presence of a circular economy. Finally, we find that while a permanent improvement in recycling technology has positive effects on output, expanding the circularity of the economy, an increase in the cost of natural material has harmful effects on output, increasing waste accumulation and reducing recycling.

Estimating Long-Run Relationship between Renewable Energy Use and CO2 Emissions: A Radial Basis Function Neural Network (RBFNN) Approach

The long-run relationship between economic growth and environmental quality has been estimated within the framework of the environmental Kuznets Curve (EKC). Several studies have estimated this relationship by using statistical models such as panel regression and time series regression. The current study argues that there is a nonlinear relationship between environmental quality indicators and economic and non-economic predictors and hence an appropriate nonlinear model is required to predict it. An adaptive and nonlinear model, namely radial basis function neural network (RBFNN) has been developed in this study. CO2 emission is used as the target output and renewable energy consumption share, real GDP, trade openness, urban population ratio, and democracy index are used as the predictors to estimate the EKC relationship for nineteen major CO2 emitting countries that account for 78% of the global emissions. The model developed in this study could predict the CO2 emissions of all the countries with more than 95% accuracy. This finding underlines the usefulness of the RBFNN model which can be used to predict emission levels of other pollution indicators at the global level. Further, comparing two models, one with all the predictors and the other excluding the renewable energy share, it was found that the model with renewable energy share predicts CO2 emissions more accurately. This reinforces the already strengthening campaign to encourage industries and governments to increase the share of renewable energy in total energy use.

Environmental strategies for achieving a new foreign direct investment golden decade in Algeria.

While numerous studies have discussed the impact of economic growth on the environment, this paper advances in the empirical literature, aiming to validate the existence of an N-shaped environmental Kuznets curve (EKC) relationship between the ecological footprint and economic growth in Algeria during the period 1975–2014. The proposed empirical model includes as additional explanatory variables the foreign direct investment (FDI) and the electricity consumption aimed to increase the relevance of the results, correcting the lack of studies that have previously analyzed the EKC for the case of Algeria. Through the ARDL econometric approach, we confirm an N-shaped EKC between the per capita economic growth and ecological footprint in Algeria, reinforcing these results using the FMOLS and DOLS techniques. In the long run, the empirical results confirmed that the N-shaped EKC in Algeria is valid; electricity consumption and foreign direct investment directly impact ecological footprint. Even though the main objective of this study is to assess the N-shaped EKC, the novelty of the paper is the analysis of the interaction between FDI and electricity consumption. The empirical evidence reveals that FDI contributes to reducing the negative impact of fossil sources in the energy mix in Algeria through the transition to a cleaner energy mix pattern. In the final step of our analysis, we explore the causal nexus among variables by applying the Toda Yamamoto non-causality test. The Toda Yamamoto non-causality test reveals a unidirectional causality between economic growth and ecological footprint; one-run relationship flows from electricity consumption to ecological footprint, and economic growth leads to cause foreign-direct investment. These empirical results evidence the necessity of establishing suitable policies after the gold decade of the FDI in Algeria, being required to advance in this line to come back to ascending levels of FDI after the financial crisis of 2008 and the current COVID-19 crisis. In this sense, policymakers should consider the advantages of FDI for promoting clean foreign investment, necessary for reaching a transition to sustainable development in Algeria. In this sense, this study proposes a battery of environmental strategies to achieve this objective and sustainable growth in the country. Thus, policy implications and directions for future research are suggested.Graphical abstract