Environmental Kuznets Curve Framework Research Articles

Investigating the role of biomass energy consumption and forest products trade on the forest footprint in Finland: an environmental Kuznets curve analysis

AbstractForests are essential in mitigating climate change by absorbing carbon dioxide and maintaining ecosystems, mainly through preserving biodiversity. For this reason, the sustainability of forests is essential for human life. This paper examines the role of biomass energy consumption, forest product trade, and economic growth on Finland’s forest footprint from 1970 to 2018. By employing Fourier-based unit root and cointegration tests, we confirm the Environmental Kuznets Curve (EKC) hypothesis, demonstrating a long-term relationship in which economic growth first raises, then reduces the forest footprint. Biomass energy consumption and forest products trade show an insignificant long-term effect on the forest footprint. We found unidirectional causality from the forest footprint to biomass energy consumption and economic growth. This research fills a gap by focusing on the under-researched forest footprint within the EKC framework, particularly in Finland’s context of stringent forestry policies. Our findings emphasize the need for interdisciplinary collaboration to enhance environmental policy and sustainability practices. We further contribute to the broader literature on sustainable forest management and offer actionable policy recommendations for enhancing Finland’s environmental strategies.

Balancing growth and preservation: Unravelling Africa's carbon-economic nexus through the environmental kuznets curve

Africa is vulnerable to the challenges of global climate change, which poses a significant obstacle to achieving economic development while protecting the environment. Despite numerous Environmental Kuznets Curve (EKC) studies, evidence remains inconclusive, especially in African countries. This study delves into the carbon-economic nexus within the EKC framework across 46 African countries from 1990 to 2020. Utilizing advanced econometric techniques such as Auto-Regressive Distributed Lag (ARDL) modeling based on the Pooled Mean Group (PMG) estimator, Common Correlated Effects Pooled Mean Group (CCE-PMG), appropriate U test, and Dumitrescu and Hurlin causality test, the research uncovers significant insights into how GDP, energy consumption, and urbanization impact CO2 emissions across different income groups. The findings strongly support the EKC hypothesis for lower-middle-income (LMI) and upper-middle- and high-income (UM&HI) countries, where economic growth initially worsens environmental degradation but eventually leads to improvements as incomes rise. However, in low-income (LI) countries, the study reveals a U-shaped relationship, suggesting that early economic growth may reduce emissions, but continued development could lead to increased environmental stress. Energy consumption is identified as a persistent driver of CO2 emissions across all income groups, while urbanization shows mixed impacts, with negative environmental consequences in LI countries and potential environmental benefits in LMI and UM&HI countries. These findings carry important policy implications for African countries as they seek to balance economic growth with environmental preservation. The research calls for targeted policies that promote green technologies, enhance energy efficiency, and implement sustainable urban planning to ensure that Africa's development trajectory is environmentally sustainable.

Remittance and carbon dioxide emissions in the Southern African Customs Union region: Is there a modified environmental Kuznets curve?

The remittance-carbon dioxide (CO2) emissions nexus remains a hotly debated topic in the literature, with the majority of studies offering mixed conclusions. This study attempts to reconcile these disparities by investigating the nonlinear effect of remittances on the CO2 emissions in top-remittance receiving countries in Southern African Customs Union (SACU) region, using the modified Environmental Kuznets Curve framework which focuses on the effect that remittances might have on CO2emissions. The Cross-Sectional Autoregressive Distributed Lag (CS-ADRL) approach is applied to these top-remittance receiving countries from 1990 to 2020, representing a pioneering investigation for these countries. The finding of this study reveal that both the estimated coefficient of remittances and its quadratic term are statistically significant, with remittances displaying a positive coefficient and the quadratic term exhibiting a negative coefficient. This pattern confirms the presence of a modified EKC hypothesis, meaning as remittances increases, CO2 levels displays an unambiguous inverted U-shaped trajectory.

The Impact of Export Concentration on the Ecological Footprint in the European Union

This study aims to evaluate the impact of export product concentration on the ecological footprint in the European Union between 1995 and 2018, using the environmental Kuznets curve framework. We utilized the pooled mean group/autoregressive distributed lag approach, which confirmed the environmental Kuznets curve hypothesis within the European Union. In addition, our findings reveal that export concentration has a negative impact on the ecological footprint, whereas energy consumption increases the ecological footprint. To further validate the obtained results, we conducted robustness checks using the fully modified ordinary least squares and dynamic ordinary least squares approaches, which validated the previous outcomes of the pooled mean group/autoregressive distributed lag approach. In the last step of our study, we employed the Dumitrescu–Hurlin causality analysis, which revealed a bidirectional causality involving the ecological footprint and energy consumption. These empirical findings directly result in valuable recommendations for policymakers.

Exploring the impact of entrepreneurial indicators on CO2 emissions within the environmental Kuznets curve framework: a cross-sectional study

Exploring the impact of entrepreneurial indicators on CO2 emissions within the environmental Kuznets curve framework: a cross-sectional study

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.

Shaping a greener tomorrow: Analysing the impact of environment-friendly technology on ecological footprints in emerging asian economies

The impact of environment-friendly technology on environment quality is an unsettled debate having generated more heat than light. Given this context, the study explores the impact of environment-friendly on ecological footprints using the Environmental Kuznets Curve framework. Utilizing Panel Autoregressive Distributive Lag model for aggregate ecological footprint doesn't show the evidence of environment-friendly technology improving environmental quality. However, disaggregated analysis reveals significant reductions in footprints related to Built-up, Crop, Fishing Grounds, and Grazing lands, with positive impacts observed on Forest and Carbon footprints. We also estimate the turning points of per capita income, confirming heterogeneous and footprint-specific Kuznets curves. Notably, we show that environment-friendly technology plays a crucial role in delaying depletion in Built-up land and contracting the depletion phase of Fishing Grounds along the Kuznets curve trajectory. The study, therefore, underscores the importance of environment-friendly technology in addressing environmental challenges and promoting environmental sustainability.

Revisiting the EKC framework concerning COP-28 carbon neutrality management: Evidence from Top-5 carbon embittering countries

In the aftermath of the 28th Conference of the Parties (CoP) climate summit in the UAE, the majority of developing countries encounter challenges in attaining their objectives of carbon neutrality for a sustainable economy. The association of economic factors such as economic growth, governance structures, forest area, renewable energy consumption, technological innovation, and urbanization with environmental elements (carbon footprint) is vital for sustainable economic development and environmental management strategies. Therefore, this research reveals this association in five selected high-emitting countries spanning from 1990 to 2022. This research utilizes the Environmental Kuznets Curve (EKC) framework to investigate the interrelationship between these variables. To do so, this study employs the cross-sectional autoregressive distributed lags (CS-ARDL) statistical technique to determine the short- and long-term impacts of the variables under investigation on carbon footprint. In contrast, the mean group (MG) and common correlated effect mean group (CCEMG) have been applied for robustness. The findings revealed that GDP, urbanization, and forest area have positive associations with carbon footprints, whereas GDP square, renewable energy consumption, technological innovation, and governance effectiveness have inverse relationships with carbon footprints. These findings provide all stakeholders with valuable policy recommendations and management advice for accelerating the transition of renewable energy to low-carbon and green growth.

Analysing the Role of Globalisation in Environmental Degradation of West African Countries: A Method of Moments Quantile Regression Approach

Abstract Motivated by the need to achieve a sustainable environment as entrenched in the Sustainable Development Goals and the conflicting evidence in the literature, this study scrutinises the effect of different components of globalisation on the environmental degradation of West African nations within the Environmental Kuznets Curve framework. Fully modified ordinary least squares, dynamic ordinary least squares, and the method of moments quantile regression of Machado and Silva (2019) are deployed as the estimation techniques. In the panel, cross-sectional dependence and non-normality are established. The findings from the quantile regression reveal a significant positive impact of economic growth on environmental degradation. The square of economic growth has an insignificant negative influence on environmental degradation. Thus, the EKC hypothesis is not valid in West African nations. Aggregate globalisation significantly influences environmental degradation, while economic and political globalisation significantly negatively impacts environmental degradation across the quantiles. However, social globalisation negatively impacts environmental degradation at a lower quantile (10–50 %), while at a higher quantile, the impact is positive. Natural resources significantly affect environmental degradation, while energy consumption in the region benefits the environment. Nevertheless, urbanisation has a different impact on environmental degradation in the area. The results of these studies are robust to other methods of estimation. The implications of the study are discussed.

Testing the nuclear energy induced environmental Kuznets curve for Bulgaria: An ARDL bounds test with sharp and smooth breaks

AbstractAttaining sustainable development entails extensive use of clean energy and low levels of carbon emissions. Hence, nuclear energy is considered an avenue to reach higher levels of sustainable development. However, the existing literature documents the ambivalent conclusion on the nuclear energy‐emissions nexus. To solve this puzzle, the present study re‐investigates the nuclear energy‐emissions nexus for Bulgaria using the Environmental Kuznets Curve framework. We adopt the methodology of novel bootstrap ARDL with sharp and smooth structural breaks. The findings document that nuclear energy is responsible for waning emissions across the long and short‐run. Also, we validate the EKC hypothesis. To provide robust empirical findings, we perform a sensitivity analysis, which reports results similar to the baseline findings. Hence, we propose to escalate the adoption of nuclear energy to curb emissions.

Assessing the Impact of Digitalization, Tax Revenues, and Energy Resource Capacity on Environmental Quality: Fresh Evidence from CS-ARDL in the EKC Framework

This study examines the dynamic relationships between digitalization, environmental tax revenues, and energy resource capacity within the framework of the Environmental Kuznets Curve (EKC), focusing on their combined impact on environmental quality. It employs a cross-sectional augmented autoregressive distributed lag (CS-ARDL) approach, an advanced technique for complex panel data that is specifically designed to address issues of cross-sectional dependence and slope heterogeneity inherent in panel data analysis. The research covers 88 countries, including both low- and middle-income countries (LMICs) and high-income countries (HICs), to understand how digitalization, as a driving force of the Fourth Industrial Revolution, interacts with environmental taxation and energy resource management to affect greenhouse gas emissions. The results reveal distinct effects of environmental taxes and energy capacity on environmental quality, with marked differences between LMICs and HICs. In HICs, technological progress, especially in information and communication technology (ICT), is found to contribute significantly to environmental quality. For LMICs, the effects are less evident, and the findings suggest the need for tailored strategies in environmental policy and energy management. By providing empirical evidence on the differential impacts of digitalization and energy policies in different economic contexts, this research enriches the environmental economics discourse. It highlights the need for policy frameworks tailored to specific contexts that effectively balance economic growth with sustainable development goals, thereby providing insightful implications for achieving the Sustainable Development Goals (SDGs).

Exploring the Impact of Entrepreneurial Indicators on CO2 Emissions Within the Environmental Kuznets Curve Framework: a Cross-sectional Study

Exploring the Impact of Entrepreneurial Indicators on CO2 Emissions Within the Environmental Kuznets Curve Framework: a Cross-sectional Study

Impact of remittance on economic growth and environmental quality in the purview of energy use, regulatory quality, and financial development

AbstractThis study investigates the asymmetric effects of remittance on economic growth (EG) and environmental quality in the purview of energy use, regulatory quality (REQ), and financial development (FD) in the top 20 remittance‐earning countries. It employs panel data from 1996 to 2020 and utilizes the generalized least square (GLS) estimation and the Dumitrescu–Hurlin causality test. The GLS result shows that remittance inflow has an asymmetric effect on EG as well as environmental quality, validated by a long run asymmetric test. Remittance shocks are beneficial for both EG and maintaining environmental quality in the context of the Environmental Kuznets Curve framework. Energy use; FD, and REQ all positively affect EG, whereas FD, REQ, and gross domestic product (GDP) are favorable for the environment except for energy use. According to a supplemented analysis, remittance and regulatory quality's combined influence on EG and CO2 are favorable, but regulatory quality's impact on the former is detrimental for both models. The results of the GLS estimation are endorsed by the causality analysis, which affirms their reliability. Positive remittance shock and financial development have bidirectional causality with EG, and both shocks of remittance and financial expansion have a two‐way association with CO2 emissions. Only REQ is affected by CO2 emissions. The outcomes have important policy implications for enhancing remittance inflow, ensuring smooth energy availability, a prudential financial system, and improving REQ to influence EG and control CO2 emissions effectively.

Revisiting the nexus between economic growth and disaggregated greenhouse gases in India: Evidence from necessary and sufficient conditions

For India, achieving environmental sustainability in the midst of faster growth remains a challenging objective. Therefore, we are revisiting the nature of the Environmental Kuznets Curve (EKC) at different stages of economic growth through both necessary and sufficient conditions under the cubic model specifications in India. Further, we extend the EKC framework by incorporating energy consumption, agricultural value added, trade, the world uncertainty index, and geopolitical risk as additional variables into the three preferred disaggregated greenhouse gas emission (GHG) models. This study employs an auto-regressive distributed lag model (ARDL). The empirical findings show evidence of the valid N-shaped EKC through both necessary and sufficient conditions for carbon dioxide (CO2) and nitrous oxide (N2O) and exhibit the presence of two real and distinct income turning points for both valid EKCs. In contrast, only the necessary condition supports the N-shaped EKC for methane (CH4) emissions in India. Further, the results highlight that trade has a positive impact, whereas the world uncertainty index has a negative impact on disaggregated GHGs. Similarly, geopolitical risk has a negative effect on CH4 and N2O, whereas energy consumption has a positive impact on CO2 emissions. Moreover, agricultural value added has a negative effect on CH4 and a positive effect on N2O emissions. Our empirical findings suggest policy recommendations that can collectively work as a roadmap for India to become emission-neutral by 2070.

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.

Do natural resources and green technological innovation matter in addressing environmental degradation? Evidence from panel models robust to cross-sectional dependence and slope heterogeneity

This study investigates the impact of natural resources and green technological innovation on environmental degradation via carbon dioxide emissions within the framework of environmental Kuznets curve (EKC) with renewable energy consumption and urbanization as control variables. Current econometric techniques are engaged for accuracy and reliability, and the study panel is revealed to be heterogeneous and cross-sectionally based, with yearly data from Asian countries from 1990 to 2019. The Augmented Mean Group (AMG) and Dynamic Common Correlated Effects Mean Group (DCCEMG) estimators are employed to examine the connection between the variables, and the findings affirm that increasing green technological innovation and renewable energy consumption mitigate environmental degradation, while urbanization exacerbates it. Natural resources are found to have both increasing and decreasing impacts on environmental degradation. The EKC hypothesis is validated in Asia, indicating that environmental degradation rises with economic expansion until it peaks, then declines, forming an inverted U-shaped curve. The study established bi-directional causalities between economic growth and environmental degradation, natural resources and environmental degradation, renewable energy consumption and environmental degradation, and urbanization and environmental degradation. Nevertheless, uni-directional causality from green technological innovation to environmental degradation is affirmed. Therefore, it is recommended that Asian countries prioritize policies that promote the development and implementation of green technologies, such as hybrid vehicles, energy-efficient building systems, and smart grids, among others, to enable sustainable energy consumption. This will reduce resource consumption, waste production, and pollution while achieving significant cost savings.

Unraveling the Interrelationship of Digitalization, Renewable Energy, and Ecological Footprints within the EKC Framework: Empirical Insights from the United States

The study seeks to better comprehend the ecological footprint of the United States by analyzing the effects of digital financial inclusion (FinTech) as well as renewable and non-renewable energy usage. Data from 2005 Q1 to 2020 Q4 were analyzed using the quantile autoregressive lag (QARDL) method. It also used Granger causality in quantiles to analyze the correlation between variables and draw conclusions about their relative importance. Quantile-wise, the error correction parameter is statistically significant with the predicted negative sign, as shown by the results obtained using the QARDL method. Indications are mounting that the relationship between these variables and the United States’ ecological footprint is returning to its long-term equilibrium. However, in the long/short-run period, across all quantiles, economic growth and consumption of non-renewable energy have a positive impact on the ecological footprint. The environmental Kuznets curve (EKC) theory was also examined, which holds that an inverted U-shaped link exists between economic growth and environmental degradation. The QARDL study’s findings corroborated the presence of an EKC in the US, lending credence to the theory that while economic growth at first promotes environmental deterioration, further progress ultimately promotes environmental improvement. The study additionally checked the results of the QARDL test for robustness using the ARDL approach. Recommendations for public policy are included in the paper for consideration by legislators and policymakers.

Green versus conventional growth in the EKC framework of top pollutant footprint countries: Evidence based on advanced panel data techniques

Green growth has become the most credible solution to deal with the deterioration of the environment and excessive use of natural resources. Many studies have investigated the relationship between conventional economic growth and environmental degradation in Environmental Kuznets Curve (EKC) framework. However, in this analysis, we have investigated the EKC hypothesis by including green growth instead of conventional growth. Moreover, we have relied on the ecological footprint to represent environmental degradation in this analysis. Hence, the primary focus of the research is to investigate the association between green economic growth and ecological footprint in the EKC framework of top footprint economies for 1991–2017. The study employed the CS‐ARDL model and other advanced panel data techniques to estimate the model. The analysis confirmed the EKC hypothesis in top ecological footprint economies when we use conventional economic growth; however, the estimated coefficients of green growth and its square are negatively significant. The findings imply that green growth can help reduce the environmental burden, and renewable energy, eco‐innovations, and human capital also support the cause.

The asymmetric effect of ICT on CO2 emissions in the context of an EKC framework in GCC countries: the role of energy consumption, energy intensity, trade, and financial development.

This study examines how "information and communication technology (ICT)" affects carbon dioxide (CO2) emissions in Gulf Cooperation Council (GCC) nations asymmetrically, controlling energy consumption, its intensity, trade, and financial development following an environmental Kuznets curve (EKC) approach. It employs panel data covering 1995-2019, 2nd generation unit root, Westerlund cointegration tests, nonlinear pooled mean group (PMG) estimate, and Dumitrescu-Hurlin causality check. The Westerlund test validates a long-run association among variables. The study confirms the EKC proposition for the GCC countries. It reveals that a decrease in CO2 emissions is associated with both positive and negative parts of ICT and the expansion of financial development. While per capita GDP increases pollution, squared GDP per capita reduces it; energy consumption, intensity, and trade amplify carbon emissions. D-H causality check yields several bidirectional and one-way causalities and verifies the robustness of PMG outcomes. Our findings suggest that promoting ICT becomes one of the critical techniques to decrease CO2 emissions in GCC nations due to its significant negative influence on CO2 emissions.

Kuznets and the cities: Urban level EKC evidence from Europe

This paper empirically explores the extent to which European cities are on track to sustainable development by examining the environmental performance of a large sample of cities observed during the last two decades. The paper builds on the Environmental Kuznets Curve framework and leverages satellite data to build a set of environmental indicators as varied and as granular as possible. Evidence suggests that European cities are, on average, on track to sustainable development, meaning that the contribution of their economic growth to environmental degradation is already negative or close to becoming so. The paper also examines Transnational City Networks as accelerators of environmental transition. The results suggest that cities participating in such networks anticipate the transition with respect to their peers.