Examining Environmental Kuznets Curve for river effluents in India

Abstract

This study aims to determine the trade-off between river pollution and the growth of the economy in the context of India using the concept of Environmental Kuznets Curve (EKC). According to EKC theory, environmental pressure tends to rise faster than income growth in the early stages of economic development and then declines in the later stages with further economic growth. The present study has used the cross-sectional time series data for river pollutants of Biochemical Oxygen Demand (BOD) and Dissolved Hydrogen Ions (PH) across various states of India for the period 1990-1991 to 2005-2006. This study shows why the conventional EKC model is not sufficient to ascertain the declining path of pollution as the economy grows in the second stage. The paper uses the modified EKC theory where the EKC curve is proposed to have 2 turning points. Our results indicated 'tilted-S shaped' relationship which contradicts EKC in the early stages. Most of the regions that were studied have crossed the first turning point but are still to cross the second turning point, which means that there will be an ascent in the pollution level in the future. This calls for more stringent environment policies complementing the desired growth path.

Testing Environmental Kuznets Curve Hypothesis at Firm Level in India

“…According to the result of turning points, the sample firms were presently at the developing stage. The result (no EKC relationship exist) of this study is consistent with the result of Mythili and Mukherjee (2011), Akbostanci et al (2009). At the same time, the findings of this study contradict the results of Ahmed and Long (2012), Stern et al (1996).…”

“…It is found that the inverted -U shape relationship did exist among the urbanization and expenditure inequality. Mythili and Mukherjee (2011) explored the relationship between river effluents and income of the Indian States. The analysis of this study ignored the existence of Environmental Kuznets Curve and indicated slanting-S shaped relationship.…”

“…Figure -1 diagrammatically presents the various possible forms of relationship between environmental and financial performance. The line E represents the level of Environmental Pollution while the line Y represents Income / Economic Development (Mythili & Mukherjee, 2011;Kijima et al, 2010;Akbostanci et al 2009;Song et al, 2008).…”

“…Further, to find out the existence of EKC relationship between environmental and financial performance, the magnitude of regression coefficient was used (Al-Mulali, et al, 2015;Eroglu & Hofer, 2014;Ogundipe et al, 2014;Sagala et al, 2013;Brajer et al, 2011;Mythili and Mukherjee, 2011). For the parameters (b1, b2, and b3) of these models, homogeneity was assumed (Song et al, 2008).…”

CO2 Emissions and Economic Growth of SAARC Countries: Evidence from a Panel VAR Analysis

“…The studies of Vincent (1997), Dinda et al (2000), Holtz-Eakin & Seldon (1992), Moomaw & Unruh (1998), Hill & magnani (2000), Gangadharan and Valenzuela (2001), Granados & Carpintero (2009) Mythili and Mukherjee (2011) Agras and Chapman (1999), Ghosh (2010), Jha and Murthy (2003), Kathuria and Mukherjee (2006) comes under second category as they do not support the existence of Environmental Kuznets Curve Hypothesis.…”