This study aims to investigate the relationship between carbon dioxide (CO2) emissions, energy consumption, real output (GDP), the square of real output (GDP(2)), trade openness, urbanization, and financial development in the USA for the period 1960-2010. The bounds testing for cointegration indicates that the analyzed variables are cointegrated. In the long run, energy consumption and urbanization increase environmental degradation while financial development has no effect on it, and trade leads to environmental improvements. In addition, this study does not support the validity of the environmental Kuznets curve (EKC) hypothesis for the USA because real output leads to environmental improvements while GDP(2) increases the levels of gas emissions. The results from the Granger causality test show that there is bidirectional causality between CO2 and GDP, CO2 and energy consumption, CO2 and urbanization, GDP and urbanization, and GDP and trade openness while no causality is determined between CO2 and trade openness, and gas emissions and financial development. In addition, we have enough evidence to support one-way causality running from GDP to energy consumption, from financial development to output, and from urbanization to financial development. In light of the long-run estimates and the Granger causality analysis, the US government should take into account the importance of trade openness, urbanization, and financial development in controlling for the levels of GDP and pollution. Moreover, it should be noted that the development of efficient energy policies likely contributes to lower CO2 emissions without harming real output.
The purpose of this study is to examine the role of economic structure of European countries into testing the Environmental Kuznets Curve (EKC) hypothesis for European countries for the period 1980 to 2014. This study is inspired by the work of Lin et al. (J Clean Prod 133:712-724, 2016), which made the first effort to investigate the phenomenon looking only at African countries. The main finding of the study is that the overall economic growth is the factor with which CO2 emissions exhibit an inverted U-shaped relationship in the studied country group. On the contrary, when using their industrial share as a proxy to capture the countries' economic structure, the EKC hypothesis is not confirmed -but a U-shaped relationship is confirmed. The industrial share decreases emissions through the development and absorption of technologies that are energy efficient and environmental friendly. The EKC hypothesis is confirmed when the aggregate GDP growth is considered, taking into account the improvement of the overall economic conditions of the countries regardless of the economic structure and role of industrialization.
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