Kuznets Curve Research Articles

Linkages between economic growth, health expenditures, education, and environment: dynamic analysis of Nigeria

The study comprehensively analyzed the nexus between economic growth, health expenditures, education, and the environment in Nigeria, using data obtained from Central bank of Nigeria and World Bank. By utilizing a robust dataset spanning from 1981 to 2021, the study employed autoregressive distributed lag (ARDL) approach to uncover intricate relationships. Results, both short-run and long-run analyses, reveal that health and education spending, and gross fixed capital formation positively correlated with economic growth. Conversely, the findings demonstrated that population growth and carbon dioxide emissions (CO2) exerted detrimental effects on economic growth due to the negative impact on the health of the working population. Additionally, the inverted U-shaped relationship between the macroeconomic footprint and income confirms the validity of Nigeria's Environmental Kuznets Curve (EKC) phenomenon. Lastly, the findings of this study hold important policy implications, emphasizing the need for technological advancements and innovative solutions to address the challenges associated with economic growth, health expenditures, education, and the environment in Nigeria. Policy measures promoting birth control through contraception and family planning should be embraced to effectively manage the country's rapidly growing population.

Natural resources as a double-edged sword towards ecological quality: Can environmental regulations and green human capital rectify the adverse impacts?

Natural resources are the backbone of any economy and the bedrock of ecological health. However, the relentless exploitation of these resources has given rise to ecological degradation. This threatens ecosystem stability, presenting the urgent need to balance natural resource utilization with ecological integrity. Environmental regulations and green human capital are pivotal in striking this balance and progressing towards the Sustainable Development Goals (SDGs). Therefore, this study explores how natural resources impact ecological quality in Ghana from 1990 to 2019 within the environmental Kuznets curve (EKC) framework, considering the role of environmental regulations and green human capital. The study employs the novel dynamic ARDL simulation method, presenting insights that diverge from patterns noted in previous studies. The study's findings reveal that natural resources intensify ecological quality in the short term but degrade ecological quality over the long term. Environmental regulation reduces ecological harm, while green human capital negatively impacts ecological quality. Environmental regulation and green human capital undesirably and beneficially impact how natural resources relate to ecological quality, with the undesirable effects occurring in the short term and the beneficial effects emerging over the long term. Further, a U-shaped relationship is observed between economic growth and ecological pollution in the short term, which transforms into an inverted U-shaped relationship in the long term, thus validating the EKC hypothesis in Ghana. The study concludes by recommending the implementation and enforcement of environmental regulations as a pathway toward achieving ecological quality and SDGs, particularly SDG 13, SDG 12, and SDG 7.

The impact of aggregated and disaggregated fisheries production and licensed fishermen on fishing grounds footprint: A time series analysis

This study has examined the factors of fishing grounds footprint in Malaysia during 1961–2018, which has been used as the indicator of environmental degradation. The main contribution of this paper is that we have considered the role of aggregated and disaggregated fisheries production on pollution in the fishing industry. Another contribution of this study is that the environmental impact of activities of licensed fishermen has been examined. The results suggest that the total fisheries production and its components- capture fisheries production and aquaculture production generate an increase in fishing grounds footprint in Malaysia. The results suggest that an increase in total licensed fishermen facilitate an increase in fishing grounds footprint. There is mixed evidence on the impact of local fishermen on fishing footprint. The results indicate that an increase in foreign fishermen facilitate an increase in fishing grounds footprint. The results suggest mixed evidence for Environmental Kuznets Curve (EKC) hypothesis.

Impact of human capital and natural resources on environmental quality in South Asia

AbstractThis study examines the importance of human capital and natural resources on environmental quality in South Asia by using panel data that ranges from 1975 to 2021. Advanced cointegration approaches establish the long-term linkages between human capital, natural resources, economic growth, economic growth squared, urban population, industrial value added, and ecological footprint. To explore the long and short-run association among these variables, this study applied the panel autoregressive distributed lags (ARDL) model. The outcome designates that human capital has a negative and significant alliance with environmental quality, whereas economic growth and economic growth square affect environmental quality positively and negatively, confirming the existence of the environmental Kuznets curve (EKC) hypothesis. Urban population growth and natural resources have significant negative associations with environmental pollution, whereas industrial value added increases the pollution levels in South Asia. Lastly, the outcome of the interaction between human capital and natural resource rent on the ecological footprint has a significant positive effect. This study recommends that South Asian nations improve their human capital to promote industrial modernization, expansion of green technology, and energy-efficient habits. Utilizing natural resources also helps South Asian nations maintain a clean ecosystem. Additionally, South Asian nations ought to vigilantly track the negative consequences of industrialization on the atmosphere. Thus, ecological sustainability requires human capital and natural resources.

Effect of Carbon Footprint on Agricultural Productivity in Nigeria: An Empirical Analysis

This study examines the relationship between carbon footprint (CFP) components and agricultural productivity in Nigeria, a critical area of investigation given the country's reliance on agriculture for economic stability, food security, and employment. Using time series data from 1990 to 2020, sourced from the Central Bank of Nigeria (CBN) and the World Bank, this study analyzes the effect of carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) emissions on agricultural output. Employing Robust Least Square (RLS) regression and the Error Correction Model (ECM), the study finds that CO2 and CH4 emissions negatively affect agricultural productivity, with 1% increases in CO2 and CH4 emissions leading to approximate decreases in agricultural output by 2% and 3%, respectively. Conversely, a 1% increase in N2O emissions correlates with an 8% increase in agricultural output, attributed to the use of nitrogenbased fertilizers. The results confirm the presence of long-run equilibrium relationships among the variables, with approximately 32% of the previous year's disequilibrium corrected annually. The study's findings align with the Environmental Kuznets Curve (EKC) hypothesis, suggesting that Nigeria is in the early stages of economic growth where environmental degradation is pronounced. These insights underscore the need for sustainable agricultural practices and effective carbon emission mitigation strategies to enhance food security and support economic growth in Nigeria.

Unraveling the environmental consequences of trade openness in South Africa: a novel approach using ARDL modeling

Abstract Free trade and environmental sustainability are currently top economic and environmental research priorities. While numerous theories connect trade openness with environmental quality, empirical evidence often fails to support these claims. Using data spanning from 1980 to 2020, our study examines the effect of trade openness on CO2 emissions in South Africa. By employing a novel ARDL modeling framework, our analysis confirms the presence of the Environmental Kuznets Curve (EKC) hypothesis in South Africa. Our findings reveal that while GDP square enhances environmental quality, trade openness and economic growth have a degrading effect over time. Additionally, the study identifies that energy consumption, FDI, and value-added activities all contribute to environmental degradation. Findings also highlights the influence of institutional quality on the environment, demonstrating that political stability and control of corruption lead to increased CO2 emissions, while the rule of law reduces CO2 emissions. The research suggested that the potential of green economies should be leveraged in developing renewable energy, sustainable development, the recycling industry, and green financing sectors. A shift in economic activity in this direction will thus foster long-term economic growth and sustainable development.

National wealth, cultural moderators and pollution mortality: a panel analysis of 170 countries

Global concerns have arisen due to pollution-related mortality, and scholars studying the Environmental Kuznets Curve (EKC) have explored the impact of economic growth on carbon emissions, yielding conflicting findings. Considering these opposing perspectives on whether wealth exacerbates or mitigates the negative consequences of environmental pollution, we aim to assess the influence of economic growth on pollution-related mortality and investigate whether national culture moderates its impact. To gain insights into the effects of economic growth on pollution-related mortality, we utilized panel data covering 170 countries over a span of 23 years (1996–2017). Initially, we examined the relationship between GDP per capita and pollution-related mortality, finding support for the theory of a curvilinear correlation but not for the concept of a bell-shaped curve. Upon introducing cultural moderators, the curve shifts in different directions along various dimensions. High power distance and masculinity cultures are associated with increased pollution-related mortality, whereas individualist and long-term orientation cultures are linked to reduced pollution-related mortality. The directions of these moderators align with both linear and nonlinear analyses, except for uncertainty avoidance. This study makes significant contributions to the critical issue of pollution-related mortality, extending beyond traditional sustainability analyses. Additionally, it provides a robust examination of the intertwining of economic wealth and culture, challenging the dominance of either type of logic. Lastly, our study draws attention to policy-driven solutions.

Higher education’s impact on CO2 mitigation: MENA insights with consideration for unemployment, economic growth, and globalization

This study investigates the intricate interplay between higher education and environmental pollution in the MENA region from 2000 to 2018. Employing a comprehensive analytical approach, including cross-dependency tests alongside panel unit root tests, Kao cointegration tests, fixed effect GLS, DOLS (dynamic ordinary least squares), FMOLS (fully modified ordinary least squares) estimations, and Granger causality tests, the research focuses on three critical control variables—Unemployment, gross domestic product, and the globalization index. GLS analysis reveals a positive correlation between higher education, globalization, GDP per capita, and CO2 emissions in the MENA region. However, delving deeper using DOLS and FMOLS, a nuanced perspective emerges, indicating the role of higher education and globalization in mitigating CO2 emissions in the long run, challenging the Kuznets curve hypothesis. Additionally, causality tests highlight the significant influence of higher education and globalization on CO2 emissions. These findings address a critical gap in the understanding of environmental dynamics in the MENA region and offer valuable insights for policymakers and governments, informing targeted interventions and policies for sustainable development and reduced CO2 emissions.

Financial globalization and economic growth amid geopolitical risk: A study on China-Russia far East federal district

Geopolitics, natural resource efficiency and financial globalization have arisen as a new concept for low CO2 to achieve sustainable economic growth (EG). Therefore, developed and developing economies focus on Geopolitics risk (GPR), natural resource (NRS) efficiency and financial globalization (FG) to cope with CO2 neutrality targets. In order to understand the elements that contribute to achieving CO2 neutrality, this study sought to establish a relevant connection between geopolitics, the efficiency of NRS, financial globalization (FNG), and economic growth. For the abovementioned objectives, modern econometric methods, such as the canonical cointegration, CS-FGLS and GMM were adopted to evaluate the China-Russia Far East dataset between 1990 and 2022. In order to achieve CO2 neutrality in the long run, the study's elements are crucial, according to the results. In addition, GMM shows that each of the parameters affects CO2 neutrality. As a result, the ecological Kuznets curve rules the economic landscape, and long-term CO2 neutrality is greatly facilitated by geopolitics, efficient use of natural resources, financial globalization, and economic growth. Consequently, numerous domains necessitate far-reaching and revolutionary policy changes, such as economic integration to mitigate geopolitical risk, effective management of natural resources, efficient financial systems, and sustainable technology.

Financial sector development and renewable energy consumption nexus: Evidence from global dynamic panel threshold analysis

AbstractDecarbonizing economies requires an energy transition from conventional energy resources to renewable and clean energy resources. However, this transition largely depends upon the availability of huge investments to manage high start‐up costs and operational infrastructure. In this respect, the financial sector can play a vital role. This study explores the financial sector's role in renewable energy consumption utilizing a comprehensive measure of financial sector development constituting both financial institutions and financial markets. Moreover, the study utilizes an advanced econometric technique “dynamic panel threshold model” on panel data of 165 countries ranging from 1980 to 2019. The empirical analysis reveals the presence of a threshold value of 0.191, 0.196, and 0.008 for the overall financial development index, financial institutions index, and financial market index, respectively. This finding confirms the presence of a U‐shaped curve between financial sector development and renewable energy consumption, validating the existence of the financial Kuznets curve. Thus, initially, financial sector development results in lower renewable energy consumption while after reaching the threshold level it boosts renewable energy consumption. Furthermore, the study also shows the statistically significant role of economic growth, trade openness, and inflation in explaining renewable energy usage. The obtained outcomes suggest a pressing necessity to improve both financial institutions and markets to surpass the threshold levels of financial sector performance within the financial sector, thus supporting a rise in renewable energy consumption.

Economic Growth and Carbon Emissions: Environmental Kuznets Curve (EKC) Hypothesis in Indonesia from 1990 to 2020

All countries in the world, both developed and developing countries, are facing pollution problems in order to be able to balance accelerating economic growth with environmental degradation problems due to their economic activities. The acceleration of economic development in Indonesia to achieve high industrial growth is directly proportional to the cause of the high increase in carbon dioxide emissions. The purpose of this study is to see the environmental impact of the regulations set, as well as to provide recommendations for the formulation of environmentally friendly economic development policies in the future. This study applies time series data regression with ECM as the method used. Indonesia was chosen as the object of the theory Environmental Kuznets Curve (EKC) from 1990 to 2020. The results of the study show that the squared industry variable in the short term is not significant, but in the long term, it is significant and has an effect of -0.0002, which means that the EKC hypothesis is not proven in the short and long-term, only a decrease in environmental degradation occurs. (CO2 emissions) because industry increases in the long term or industry has a significant negative effect on carbon dioxide emissions in the long term.

Have Agricultural Land-Use Carbon Emissions in China Peaked? An Analysis Based on Decoupling Theory and Spatial EKC Model

Assessing the emission-peaking process of agricultural land use provides valuable insights for mitigating global warming. This study calculated agricultural land-use carbon emissions (ALUCEs) in China from 2000 to 2020 and explored the peaking process based on quantitative criteria. Further, we applied the Tapio decoupling index and environmental Kuznets curve (EKC) model to discuss the robustness of the peaking process. The main conclusions are as follows: (1) From 2000 to 2020, China’s average ALUCEs were 368.1 Mt C-eq (1349.7 CO2-eq), peaking at 396.9 Mt C-eq (1455.3 Mt CO2-eq) in 2015 before plateauing. Emissions from agricultural materials and soil management had entered the declining period, while those from rice cultivation were in the peaking period, those from straw burning were still rising, and those from livestock breeding remained at the plateauing phase. (2) The provinces of Beijing, Tianjin, and nine others saw a decline in ALUCEs, while Hainan, Guizhou, and another nine provinces observed plateauing, and Ningxia, Qinghai, and six other provinces experienced peaking. (3) Decoupling analysis confirmed that emission-peaking states remained stable even with agricultural growth. Instead of an inverted U-shaped relationship, we found an N-shaped relationship between ALUCEs and agricultural GDP. The spatial EKC model indicated that the peaking process had spillover effects between provinces. It is recommended that China accelerate ALUCE mitigation based on the source and phase of emissions, considering the peaking process and magnitude.

Re-examining the Environmental Kuznets Curve in MENA Countries: Is There Any Difference Using Ecological Footprint and CO2 Emissions?

Re-examining the Environmental Kuznets Curve in MENA Countries: Is There Any Difference Using Ecological Footprint and CO2 Emissions?

Does macroprudential policy matter for corporate green innovation? The role of financing constraints and public environmental concerns

Green development ideas are gradually being incorporated into macroprudential policy frameworks, which can be of great significance for enterprises’ green development. Most studies focus on the macroeconomic impact of macroprudential policies (MPPs). However, the extent to which MPPs affect corporate green innovation (GI) at the corporate level remains unclear. Based on 12,280 firm-year records from China's A-Share Listed Companies spanning 2011–2020, combined with Environmental Kuznets Curve (EKC) hypothesis, we discover a firm tendency to promote GI under loosening MPPs, which is then curtailed after reaching a certain threshold. The impact is primarily channelled through public environmental concerns and financing constraints, as evidenced by an inverted U-shaped relationship. Additionally, MPPs are more likely to influence corporate GI in regions with high green finance development. Furthermore, we observed a consistent superiority of strategic over substantive GI, with green process innovation being the least impacted. Our results highlight the importance of rational design of MPPs not only at the macro level but also as a priority at the corporate level, as such a policy loosening and tightening will affect the GI activities of corporations.

Reinvestigating the EKC hypothesis: Does renewable energy in power generation reduce carbon emissions and ecological footprint?

For a developing nation such as Malaysia with a significant reliance on fossil fuels for electricity, understanding the environmental consequences of this dependency is crucial. Thus, this study utilizes the Autoregressive Distributed Lag (ARDL) method to explore the impact of electricity intensity (EINT), renewable energy in electricity generation (ERE), and gross domestic product (GDP) on Malaysia's environmental quality, from 1985 to 2020. By using carbon emissions (CO2 emissions) and ecological footprint (EF) as proxies, the study finds a significant long-run impact of these factors on environmental degradation. Notably, the study also observed an inverted U-shaped relationship between GDP and environmental degradation, validating the existence of Environmental Kuznets Curve (EKC) hypothesis. The findings also imply that while electricity intensity is associated with increased emissions, the use of renewable energy (RE) sources for electricity generation may contribute to emission reduction. But the results for both variables show reversal signs on EF. The study's adoption of the fully ordinary least square (FMOLS) method reinforces the same results, thus, justifying the cointegrating relationship between studied variables. Drawing from these outcomes, the study advocates for a comprehensive approach to renewable energy management, emphasizing both its utilization and waste in order to improve ecological footprint. Moreover, the pressing need to enact legislation on energy efficiency and conservation is crucial in ensuring decoupling and securing sustainable development in Malaysia.

Sustainable Impact of Green Building on the Eco-Economic Efficiency of the Construction Industry: Evidence from China

Addressing the global warming challenge, the carbon emissions reduction potential of green building (GB) is garnering increasing attention. However, the extent to which GB can impact the eco-economic efficiency (EE) of the construction industry remains unclear. To fill this gap, based on panel data for 30 regions of China from 2003 to 2018, in this study, a comprehensive analysis of the EE and sustainable impact of GB is conducted using a super slacks-based measure (SBM-DEA), panel vector autoregression (PVAR) and threshold models. The findings reflect that only about 10% of provinces have achieved EE effectiveness, with pure technical effectiveness being a significant driving force behind this. The average comprehensive, pure technical, and scale EE show a 62.23%, 46.42%, and 31.91% improvement potential regarding the efficiency frontier. The EE in the Eastern Region is relatively high, while the Western Region surpassed the Central Region in regards to EE in the areas of scale and pure technical efficiency. EE is significantly reduced in the current period (year) when it is subject to the positive impact of a standard deviation from the existing economic level. This impact was the strongest in period 1, then gradually disappeared until period 6, aligning with the Kuznets curve’s theoretical assumption. GB awareness negatively impacted the current period, but is expected to gradually show a positive effect after period 2. The urbanization, green building awareness, and green building coverage make a very small contribution to the EE, accounting for 8.6%, 1.6%, and 9%, respectively, with early EE and economic level identified as the primary variables affecting the current EE. The impact of GB on EE exhibits a threshold effect, with the ecological effect of GB significant only in cities with economic levels higher than 11.063. This research contributes to the existing knowledge of the eco-economic mechanism of GB and provides insights for government policies, promoting the sustainable development of the GB market.

Promoting sustainability in developing Countries: A Machine Learning-based approach to understanding the relationship between green investment and environmental degradation

The main objective of this study is to examine the impact of green investment on environmental degradation in developing countries using machine learning-based estimation combined with robustness tests of static and dynamic panel data modeling techniques. The scope of this study covers 30 developing countries for 2009–2019. This study introduces a new index of environmental degradation that uses the entropy method and includes green gas emissions and deforestation. The study addresses trade openness, the quadratic shape of economic growth, and urbanization in the context of the Environmental Kuznets Curve Hypothesis (EKC) and the Ecological Modernization Theory (EMT), in addition to green investment. This study considers the kernel-based regularized least squares (KRLS) approach, the static panel technique Driscoll & Kraay standards error method, and a dynamic panel technique system generalized moment techniques. The empirical findings from the machine learning method show that green investment significantly reduces environmental degradation with a higher coefficient resulting from the static fixed effect estimation. The study also reveals that the main hypotheses, such as EKC and EMT, are confirmed by all estimation techniques. Based on the results, the study recommends that policymakers take pragmatic steps toward green investments and increase the financing of green energy initiatives to combat environmental degradation.

The symmetric and asymmetric effect of financial development on ecological footprint in South Africa: ARDL and NARDL approach

Introduction: The literature on the finance–emission nexus offers conflicting conclusions. This study resolves this inconsistency by investigating the symmetric and asymmetric effect of financial development on ecological footprint in South Africa, using the Environmental Kuznets Curve framework as a guide. Given the coexistence of ecological deficits and world-class financial development systems in South Africa, it is essential to explore and evaluate potential solutions to mitigating these deficits. Our empirical analysis contributes to the body of literature on the impact of financial development and ecological footprint by using a comprehensive measure of financial development and disaggregates it into its sub-indices to provide a nuanced analysis.Method: This study employs the linear auto regressive distribution lag and nonlinear auto regressive distribution lag techniques to explore the complex interactions of financial development and ecological footprint.Results and Discussion: The findings of this research indicate that financial markets and institutions seem to have varying effects on the ecological footprint. Financial market indices promote environmental quality, while financial institutions exacerbate environmental quality. These results call for policymakers to craft a watertight process that will encourage both financial markets and institutions to allocate capital to projects that are pro-environmental.

Unveiling the Influence of Climate and Technology on Forest Efficiency: Evidence from Chinese Provinces

The objective of this study is to examine the impact of climate and technology on forest efficiency (FE) in China’s provinces from 2002 to 2020. First, the study used SBM-data envelopment analysis (SBM-DEA) to estimate Chinese provinces’ FE using multidimensional forest inputs and outputs. The climate influence is assessed using temperature, precipitation, sunlight hours, and carbon dioxide levels in the second phase. A climate index was created using principal component analysis (PCA) for a complete estimation. In addition to prior research, we analyze the technology impact through two technological indicators: (i) research and development, and (ii) investment in forests. Furthermore, we explore the non-linear influence of economic development on both FE and climate quality. The regression study by CupFM and CupBC found that temperature and precipitation increase FE, whereas sunlight hours and carbon emissions decrease it. The positive association observed between Climate Index1, and the negative relationship noted for Climate Index2, suggests that forests positively influence climate conditions, signifying that an improvement in FE leads to an improvement in climate quality. Technology boosts forest productivity and climatic quality. The environmental Kuznets curve shows an inverted U-shape relationship between economic development and FE. Similarly, climate and economic development have an inverted U-shaped EKC relationship. Urbanization reduces FE due to human growth and activity. Our findings are important for forest management, climate change, and sustainable development policymakers and scholars.

Intelligence and its effects on environmental decline: A worldwide analysis

The research investigates the relationship between intelligence quotient (IQ) and environmental degradation, aiming to understand how cognitive abilities influence environmental outcomes across different nations and time periods. The objective is to examine the impact of intelligence quotient (IQ) on environmental indicators such as carbon emissions, ecological demand, and the Environmental Kuznets Curve (EKC), seeking insights to inform environmental policy and stewardship. The study utilizes statistical techniques including Ordinary Least Squares (OLS), Two Stage Least Squares (2SLS), and Iteratively Weighted Least Squares (IWLS) to analyze data from 147 nations over the years 2000–2017. These methods are applied to explore the relationship between IQ and environmental metrics while considering other relevant variables. The findings reveal unexpected positive associations between human intelligence quotient and carbon emissions, as well as ecological demand, challenging conventional notions of "delay discounting." Additionally, variations in the Environmental Kuznets Curve (EKC) hypothesis are identified across different pollutants, highlighting the roles of governance and international commitments in mitigating emissions. The study concludes by advocating for the adoption of a "delay discounting culture" to address environmental challenges effectively. It underscores the complex interactions between intelligence, governance, and population dynamics in shaping environmental outcomes, emphasizing the need for targeted policies to achieve sustainability objectives.