Kuznets Curve Research Articles

Retraction notice: Kuznets curve with parabola-shaped ultra-wideband antenna with defected ground plane for communications

Retraction notice: Kuznets curve with parabola-shaped ultra-wideband antenna with defected ground plane for communications

Pollution Haven Hypothesis and EKC Dynamics: Moderating Effect of FDI. A Study in Shanghai Cooperation Organization Countries

Abstract This paper provides a comprehensive analysis of the nexus between economic growth and environmental degradation, with a specific focus on carbon dioxide (CO2) emissions. It leverages a dataset spanning from 1991 to 2021, encompassing all 12 member nations of the Shanghai Cooperation Organization (SCO). The investigation includes a wide array of statistical examinations, such as stationarity tests, cross-section dependence, and co-integration analysis. The Johansen Fisher Panel co-integration test is employed to reveal long-term correlations between the variables. Furthermore, the paper adopts the Dumitrescu and Hurlin panel causality model, which accommodates variations in causal relationships across different countries. Additionally, the study analyses the asymmetric impact of GDP on carbon emissions across various quantiles using quantile regression. The findings of this research yield valuable insights, highlighting a significant positive correlation between GDP and CO2 emissions, suggesting that higher income levels are associated with greater pollution. However, the paper also illuminates more intricate scenarios, such as those characterized by inverted U-shaped and N-shaped Environmental Kuznets Curve (EKC) patterns, revealed through DOLS estimations. These estimations consider FDI, inflation, and industrialization as control variables. This research delves into the Pollution Haven Hypothesis and examines the interaction effects of FDI with other considered variables. These insights contribute to a deeper understanding of the complex dynamics between economic growth and environmental impact within the SCO member nations.

Evaluating Enteric Fermentation-Driven Environmental Kuznets Curve Dynamics: A Bayesian Vector Autoregression Comparative Study of the EU and Least Developed Countries

Global warming and climate change, primarily driven by human activities, with agriculture playing a significant role, have become central topics of scientific research. Livestock production, especially enteric fermentation, is a major source of greenhouse gas emissions, making it a focal point for both climate change adaptation and mitigation strategies. Both the European Union (EU) and Least Developed Countries (LDCs) are highly dependent on agriculture, particularly livestock, which plays a key role in their economic growth. In developing countries, livestock systems are evolving rapidly due to various factors, while in the EU, the livestock sector remains economically and socially significant, representing 36% of total agricultural activity. This study explores the environmental impact of enteric fermentation in livestock production, alongside the economic value it generates in both the EU and LDCs. The analysis utilizes a Bayesian Vector Autoregression (BVAR) methodology, which provides a more robust performance compared to traditional models like Vector Autoregression (VAR) and the Vector-error Correction Model (VECM). This research identifies significant relationships between the variables studied, with structural breaks quantified to reflect the impact of initiatives undertaken in both regions. Interestingly, the results challenge the environmental Kuznets curve, which hypothesizes an inverted U-shaped relationship between economic growth and environmental degradation, as proposed by Stern. This suggests that stronger economic incentives may be necessary to enhance policy effectiveness and promote eco-efficiency. The distinctive characteristics of livestock production in the EU and LDCs should be carefully considered when shaping agricultural policies, with a strong emphasis on farmer education as a critical factor for success. Additionally, corporate management practices must be tailored to address the unique needs, strengths, and challenges of livestock businesses in these two diverse regions.

Navigating Carbon Peaking and Neutrality in MENA: The Impact of Foreign Direct Investment and Trade Openness Using Panel PCSE and FGLS Techniques

ABSTRACTIn response to the global challenge of climate change and the drive towards carbon neutrality, this study investigates the effects of foreign direct investment (FDI) and trade openness (TO) on carbon emissions (CEM) within the Middle East and North Africa (MENA) region. The research spans 18 countries from 1990 to 2022, focusing on Sustainable Development Goal 13. Utilizing Porter's hypothesis and the Environmental Kuznets Curve (EKC) theory, the study applies quantitative methods including panel corrected standard errors (PCSE) and feasible generalized least squares (FGLS) to ensure robustness. To address potential endogeneity, two‐stage least squares and lagged effect estimations are employed. The findings reveal that both FDI and TO are associated with reduced CEM, indicating positive environmental impacts. Also, the pairwise causality tests show bidirectional causality between FDI, TO, and CEM, while a unidirectional causality is found from industrialization (IND) and energy consumption (EC) to CEM. These results underscore the importance of integrating FDI and TO into strategies for achieving carbon neutrality and advancing sustainable development goals, offering actionable insights for policymakers.

Evaluating the influence of human disturbance on the ecosystem service scarcity value: an insightful exploration in Guangxi region

Investigating how human disturbance affects the ecosystem service scarcity value (ESSV) is crucial for maintaining ecosystem stability and achieving sustainable development goals (SDGs). This study separately assessed ESSV and human disturbance in Guangxi from 1990 to 2020, revealing their spatiotemporal distribution differences over time. The environmental Kuznets curve (EKC) is used to analyze the interrelationship between the two, with the purpose of filling the gap in current research. The main results are as follows: (1) From 1990 to 2020, ESSV in Guangxi increased significantly and reached its highest value in 2020. Under the four scenarios, ESSV increased significantly in Scenarios 2 and 4. Spatially, high ESSV was mainly distributed in some cities in central, southern, western and northeastern Guangxi. (2) The index of human disturbance in Guangxi continued to increase during the study period, with a high level of human disturbance in the central urban area and a low level of human disturbance in the peripheral areas, which were distributed in a radial pattern. (3) According to the EKC, the relationship between ESSV and human disturbance in Guangxi followed an inverted N-shaped curve. In addition, after 2010, the coupling and coordination level was dominated by “slightly balanced development”, and the area of “ESSV significantly lagged” gradually increased. This study provides a new perspective for understanding ESSV and its relationship with human disturbances, and provides an important reference for the sustainable management of ecosystems and the formulation of ecological conservation policies.

Estimating the impacts of economic globalization and natural resources on ecological footprints within the N-shaped EKC in the Next 11 economies

The economic development of N-11 countries has been significantly influenced by the contributions of natural resources (NAT) and economic globalization (EG). These countries have been facing drastic environmental problems for several years. Hence, it is imperative to ascertain the environmental ramifications of natural resource extraction activities in the N-11 nations. In doing so, this study examines the impact of gross domestic product (GDP), EG, and NAT on ecological footprints (EF) within the time frame of 1971 to 2022 in the group of N-11 countries. After verifying the cross-sectional dependence, this work found the integration of all variables at first difference. To provide short and long run econometric results; this study utilizes cross sectional autoregressive distributed lag (CS-ARDL). The findings indicate that the presence of NAT rent has a detrimental impact (0.03%) on the ecological quality within the N-11 nations. Moreover, it can be argued that both EG and GDP exhibit environmentally sustainable characteristics over an extended period by (0.03% and − 3.12%) respectively. This study does not provide evidence for the presence of an N-shaped Environmental Kuznets Curve (EKC) in the N-11 nations. Based on the findings, a policy recommendation is proposed for the nations in question. These countries must immediately implement and enforce robust environmental laws while fostering a heightened sense of environmental consciousness. It is imperative for emerging economies to increase their investments to explore and adopt efficient technologies in various economic sectors, including mining.

The Moderating Roles of Economic Complexity in the Entrepreneurship‐Sustainable Environment Nexus for the Gulf Cooperation Council Economies

ABSTRACTThere are conflicting views on the effect of business and entrepreneurial activities on environmental degradation in developing economies. However, none of this study examines whether economic complexity can serve as a policy tool for mitigating the effect of entrepreneurial business activities on a sustainable environment. Economic complexity consists of the structural and economic transformation process from a simple production system to a more complex and innovation‐based one. It predicts the variations in income level and its impact on the choice of goods being produced in an economy. This study examines the moderating effect of economic complexity on the link between entrepreneurship and sustainable environment in Gulf Cooperation Council (GCC) countries from 2006 to 2020. It further examines the validity of the Entrepreneurial Environmental Kuznets Curve (EEKC). The study uses the Driscoll‐Kraay standard error fixed effect, Panels Corrected Standard Errors (PCSE), method of moment quantile regression and Dumitrescu–Hurlin causality that are robust to heteroscedasticity, cross‐sectional dependency and other pitfalls of least square estimating technique. The results validate the inverted U‐shaped EEKC hypothesis across all the quantiles. Economic complexity increases ecological degradation at the lower quantile levels, while it decreases environmental footprint at the upper quantiles. Furthermore, economic complexity moderates the detrimental impact of entrepreneurial activity on the environment at the higher quantiles. A two‐way relationship is established between entrepreneurial activity and the environment, while one one‐way connection from economic complexity to the environment was found. The study recommends that policymakers should encourage innovative rather than necessity entrepreneurs. Entrepreneurs should be encouraged to engage in business activities that are friendly toward preserving the ecological environment, and green innovative activities should be prioritised in their entrepreneurial activities.

Towards carbon neutrality: asymmetric impact of financial development and digitalization on carbon dioxide emissions in Mediterranean countries

The current research investigates the impact of financial development, digitalization, green trade, manufacturing, and national income on carbon dioxide (CO2) emissions of six Mediterranean countries (MEDIT-6). The study uses a nonlinear panel quantile regression model with panel data of MEDIT-6 countries from 1994 to 2022. The study asserts that higher financial development will reduce CO2 emissions for MEDIT-6 countries, as it provides more financing options to invest in green energy and potentially curb excessive energy consumption which in turn reduces CO2 emissions. The study also provides evidence that digitalization in MEDIT-6 countries has led to dematerialization, thereby reducing CO2 emissions. Digitalization makes trade and commerce platforms more efficient by facilitating the smooth flow of information and enhancing the efficiency of production processes. The positive relationship between manufacturing and national income and CO2 emissions exhibits a U-shaped pattern, which supports the existence of Environmental Kuznets Curve (EKC) hypothesis. The study shows how the MEDIT-6 countries have been successful in promoting financial development and digitalization, which helps reduce their CO2 emissions. However, it also raises concerns for policymakers as promoting developmental activities such as manufacturing is inevitable, but it comes with environmental challenges such as higher CO2 emissions. The current study contributes to the reservoir of existing literature by providing fresh evidence from the Mediterranean region on the impact of financial development and digitalization on CO2 emissions.Graphical

Revisiting the sustainable industrialization paradigm in Africa: Exploring the influence of digitalization

AbstractThis research contributes to the ongoing discourse surrounding the sustainable industrialization of African nations, a pivotal aspect emphasized by the United Nations within the Sustainable Development Goals. Drawing inspiration from the burgeoning digitalization trends across Africa, this study examines the role of digitalization in mediating the environmental repercussions of industrialization within the 45 African countries spanning the years 2000–2022. The assessment of environmental sustainability is gauged through ecological footprint and biocapacity. Employing the Environmental Kuznets Curve, and the Stochastic Impacts by Regression on Population, Affluence, and Technology framework, empirical analyses leverage the Generalized Method of Moments and the mediation analysis using structural equation modeling to unveil insightful findings. The research findings highlight the detrimental impact of industrialization on ecological health, evidenced by its correlation with an increase in ecological footprint and a decrease in biocapacity. Conversely, digitalization emerges as a positive influence on environmental well‐being. These findings remain consistent across diverse categorizations of digitalization, and ecological balance. Further examination of their interplay reveals a discernible favorable impact on environmental sustainability, with mediation analysis suggesting that digitalization mitigates approximately 4% and 6% of the overall impact of industrialization on ecological footprint and biocapacity, respectively. Additionally, our analysis lends credence to the Environmental Kuznets Curve hypothesis. As a result, it is imperative for governments to incentivize industries to adopt eco‐friendly practices and technologies in order to mitigate their ecological footprint. At the same time, policies that promote digitalization should be encouraged to further enhance environmental quality.

FDI, industrialisation and environmental quality in SSA—the role of institutional quality towards environmental sustainability

In light of the quest to achieve economic development without compromising environmental quality, we empirically examine whether institutional quality (INSQY) can help moderate the possible harmful effects of foreign direct investments (FDI) and industrialisation on environmental quality in sub-Saharan Africa (SSA). We utilise the Driscoll and Kraay standard error estimation technique on a panel of 45 SSA countries from 2000 to 2019. The results indicate that FDI and industrialisation generally have a significant harmful effect on the environment. Our findings reveal that INSQY directly promotes environmental quality. Notably, the results confirm that INSQY plays a stimulating role in mitigating the adverse effects of FDI and industrialisation on environmental quality. The results further validate the environmental Kuznets curve (EKC) hypothesis in SSA. These findings contribute to environmental sustainability literature and offer policymakers insights on how INSQY can enhance environmental quality. Our empirical results are also robust to different estimation techniques, such as the two-stage least squares. We recommend SSA leaders strengthen institutional capacities, enforce environmental regulations, and implement strict policies to ensure environmental quality while promoting industrialisation and FDI inflows.

What do the sustainable development goals reveal, and are they sufficient for sustainable development?

The Sustainable Development Goals (SDGs) adopted by the United Nations in 2015 represent the current perceptions of humans regarding understanding and monitoring development. Achieving all 17 goals simultaneously is unrealistic. Considering the interconnected nature of SDGs, identifying their critical dimensions, goals, indicators, and mutual relationships is necessary. In addition, with increasing reservations about the sustainability of SDGs, it is crucial to explore consistency across different dimensions to ensure policy coherence in maximizing synergies and minimizing trade-offs. Our study employed multiple factor analysis (MFA) and hierarchical clustering on principal components (HCPC) to investigate these issues and analyze the results based on the public value (PV) theory. The results indicated that the Human Development Index (HDI) and gross domestic product per capita (GDPP) constitute the first principal component (PC) and are determinants in differentiating country clusters. However, they contradict environmental indicators such as CO2 emissions per capita and ecological footprint gha per person (EFP) and have low synergy with the Happy Planet Index (HPI). Additionally, the relationships between income level, inequality, and environmental quality correspond to a combined Kuznets curve and an environmental Kuznets curve (EKC). Moreover, governance capacity has become increasingly crucial in sustainable development, particularly in the capability to prioritize different PVs in a timely and strategic manner. Finally, despite the novelty of EFP and HPI, they cannot reveal the entire development story. SDGs require embracing more such indicators to enrich the value bases of development and achieve a sustainable future.

Evaluating the advancement of sustainable development objectives in recently industrialized nations by tying gold prices, fossil fuel prices, and energy use

Rapid industrialization in recently industrialized countries (NICs) has exacerbated environmental degradation, raising urgent concerns about how energy consumption, gold prices, and fossil fuel prices contribute to this growing issue. This study aims to evaluate the asymmetric relationships between these factors and environmental degradation across 10 NICs, including Brazil, India, South Korea, Mexico, Indonesia, Turkey, Thailand, South Africa, Malaysia, and the Philippines, from 1995 to 2023. Using the CS-ARDL model, our study demonstrates that while energy costs and renewable energy consumption reduce environmental degradation, gold prices and fossil fuel consumption significantly increase ecological harm. Additionally, the study employs FGLS, CS-DL, AMG, and Driscoll-Kray to verify the robustness of these findings. Notably, the Environmental Kuznets Curve (EKC) hypothesis holds true in these economies. Key results show that a 1 % increase in renewable energy use decreases emissions by 0.7 %, while a 1 % rise in gold prices correlates with a 0.5 % increase in pollution levels. These findings underscore the need for NICs to implement green investments, promote renewable energy, and initiate structural reforms to ensure sustainable development.

Achieving Carbon Neutrality in Emerging Markets: The Dual Impact of Energy Transition Investments on Economic Growth and Carbon Emissions.

This study investigates the effectiveness of energy transition investments (ETIs) in achieving net-zero emissions. Specifically, it revaluates the environmental Kuznets curve (EKC) by analysing whether ETIs can simultaneously stimulate economic activity and reduce carbon emissions (CE) using the Autoregressive Distributed Lag (ARDL) model. The analysis focuses on a sample of emerging countries. In contrast to previous research, the study expands the EKC model by incorporating the ETIs variable, which encompasses a broader and more comprehensive range of investments that contribute to climate change mitigation, beyond just renewable energy. Additionally, the study employs total factor productivity (TFP) as a measure of economic activity, instead of GDP, considering the efficiency of technology, energy, and other resources. Key findings indicate that the TFP coefficient is higher in the short term compared to the long-term supporting the validity of the EKC hypothesis. This suggest that emerging countries have reached a TFP level of that helps reduce their CE, aiding climate change adaptation and mitigation. The study also reveals a negative effect of ETIs on CE and shows that an increase in TFP significantly enhances ETIs, suggesting that higher TFP levels attract more investment in energy transitions. These findings provide insights for policymakers on the impact of ETIs on CE and aid in formulating effective policies to achieve net-zero emissions.

Public Energy R&D Spending and Green Energy for Sustainable Development: COP28 Perspective of G7 Economies

Achieving sustainable development goals (SDGs) is one of the top priorities for countries worldwide, and the recent COP28 has focused mainly on achieving sustainable development via clean energy investment financing. However, countries and regions still struggle to find various policy-level indicators to achieve sustainability engagement. In this context, finding the right combination of policy indicators becomes crucial. Therefore, the current study seeks to identify the key drivers of sustainability for the G7 economies by utilizing data from 1990–2019. This study employed the cross-sectional autoregressive distributed lag (CS-ARDL) panel time series method of estimating primary results and a novel sustainable development index as the dependent variable. The study revealed that public energy R&D budgets, increasing income levels, improving the political risk index, and promoting clean energy are important for achieving sustainable development in the G7 countries and that the depletion of natural resources has an adverse influence on sustainability. These empirical results are supported by various economic and environmental theories, i.e., the environmental Kuznets curve, the innovation theory of sustainability, the Dutch disease hypothesis, and the political economy of development and energy transition theory. Based on these findings, energy investment is recommended, especially for clean energy projects, and increasing income levels via sustainable economic activities to achieve sustainability in the G7 economies.

Economic growth and environmental sustainability: The role of foreign direct investment and technological innovation on carbon emissions in Ghana

Debates on foreign direct investment, technological innovation and carbon emission seem unsettling in the literature. We contribute to the literature by investigating the relationships between foreign direct investment, technological innovation, and carbon emissions in Ghana. Using the Autoregressive Distributive Lag (ARDL) method, the analysis reveals that foreign direct investment contributes to reduced emissions in the short run but significantly increases carbon emissions in the long run, aligning with the pollution haven hypothesis. This indicates that Ghana may have a robust environmental regulation that ensures eco-friendly foreign direct investments in the short run, with weak enforcement of regulations resulting in high emissions in the long term. Technological innovation in the Ghanaian context contributes to increased CO2 emissions. However, the interaction effect of foreign direct investments and technological innovation reduces carbon emissions, emphasizing the importance of aligning foreign investments with sustainable technological advancements in Ghana. The study also identifies the Environmental Kuznets Curve (EKC) effect, where emissions rise with economic growth but decelerate at higher GDP levels. The findings underscore the need for stronger environmental regulations and a shift towards sustainable, cleaner energy and technological development to mitigate the environmental impacts of economic growth in Ghana and similar developing countries.

Investigation of the relationship between economic growth and mismanaged construction waste: evidence from 268 cities in China

Developing countries face the unprecedented environmental protection challenges associated with urban regeneration and economic development. These challenges are particularly evident in managing the vast quantities of construction waste (CW) generated by new building construction and demolition at an urban scale. Capturing the dynamic relationships between CW and urban economic development is a key step in addressing the imbalance between the two and in exploring effective management strategies. This study innovatively uses urban-level data to analyze the non-linear relationship between CW and economic development, while verifying the applicability of the Environmental Kuznets Curve (EKC) hypothesis in the context of CW management. By exploring both short-term and long-term equilibrium effects using data from selected Chinese cities, the study investigates the heterogeneity among four agglomerations through hybrid panel econometric methods. Subsequently, quantitative data analysis is conducted to uncover the socioeconomic drivers of CW generation and to explore their unidirectional causality relationships. This approach not only provides crucial evidence for developing a strategic framework for CW management, but also extends the applicability of the EKC hypothesis to the domain of CW.

Environmental Kuznets Curve for Extended Brics Economies: Do Women Governance and Water Stress Matter?

Environmental Kuznets Curve for Extended Brics Economies: Do Women Governance and Water Stress Matter?

Evaluating the Environmental Kuznets Curve: The Role of Renewable Energy, Economic Growth, Urban Density and Trade Openness on CO2 Emissions. An Analysis for High-Income Countries Using the CS-ARDL Model

Evaluating the Environmental Kuznets Curve: The Role of Renewable Energy, Economic Growth, Urban Density and Trade Openness on CO2 Emissions. An Analysis for High-Income Countries Using the CS-ARDL Model

Detecting the Role of Agriculture and Industry Value Added, Energy, Capital Flow, and Openness to Trade upon Environmental Kuznets Curve for India

Detecting the Role of Agriculture and Industry Value Added, Energy, Capital Flow, and Openness to Trade upon Environmental Kuznets Curve for India

Revisiting the Effect of FDI and Trade Openness on Carbon Dioxide in Indonesia: Modelling the Environmetal Kuznets Curve

Revisiting the Effect of FDI and Trade Openness on Carbon Dioxide in Indonesia: Modelling the Environmetal Kuznets Curve