Revisiting the environmental kuznets curve hypothesis: evidence from the ASEAN-5 countries with structural breaks

Kisswani, Khalid M.; Harraf, Arezou; Kisswani, Amjad M.

doi:10.1080/00036846.2018.1529399

Cited by 30 publications

(22 citation statements)

References 54 publications

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“…They evidenced the existence of the EKC hypothesis in Japan and Korea only, and no such relation was observed in China. Kisswani et al [19] examined the effect of economic growth on CO 2 emissions in five Association of Southeast Asian Nations (ASEAN) countries using ARDL with structural break analysis for individual countries and a pooled mean group (PMG) estimator for overall sample. They found that the inverted U-shaped hypothesis does not hold for these countries, except for Thailand after incorporating structural breaks in the model.…”

Section: Cross-country Studiesmentioning

confidence: 99%

“…The structural break analysis is important to determine any extraordinary event or economic shock that could cause a sudden change in a time series at a certain point of time. Therefore, structural break tests are used to identify specific break dates before applying cointegration or the ARDL model, because such structural breaks could bias or skew the results of ARDL [19]. Following the study of Kisswani et al [19], we applied the Bai et al [74] test to investigate break dates.…”

Section: Structural Break Analysismentioning

confidence: 99%

“…Therefore, structural break tests are used to identify specific break dates before applying cointegration or the ARDL model, because such structural breaks could bias or skew the results of ARDL [19]. Following the study of Kisswani et al [19], we applied the Bai et al [74] test to investigate break dates. Bai et al [74] suggested that this method is preferable over the other structural break tests because it warrants a consistent strategy to simultaneously determine the most suitable break dates while allowing for specific to general econometric modeling.…”

Section: Structural Break Analysismentioning

confidence: 99%

“…Thus, we applied the ARDL approach to ensure reliable and accurate results of the EKC hypothesis because of the following beneficial properties which cointegration approaches fail to address [19,30,38]:…”

Section: Ardl Model With Structural Breakmentioning

confidence: 99%

“…For instance, many researchers confirmed the existence of an inverted U-shaped nexus between economic growth and pollution [12][13][14][15][16]. The evidence on the EKC hypothesis in previous studies is quite controversial, and a large number of studies did not support an inverted U-shaped relationship between economic growth and CO 2 emissions [17][18][19]. Another set of studies reported mixed evidence relating to the EKC hypothesis due to variations in country dynamics and the type of pollution measures taken [20,21].…”

Section: Introductionmentioning

confidence: 99%

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Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

et al. 2020

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Our pioneer study is aimed at investigating the role of the service sector in affecting sustainable environment in Pakistan. Using time series data over 1971–2014 and applying an autoregressive distributive lag (ARDL) model with structural break analysis, we establish a long-term equilibrium relationship of carbon dioxide (CO2) emissions with energy consumption, income level, services and trade openness. Our findings support a service-induced environmental Kuznets curve (EKC) hypothesis in Pakistan. The income level sharply raises environmental degradation at the early stage; however, after reaching a certain threshold, it improves environmental quality but at a lower rate. There exists an inverted U-shaped nexus between services and CO2 emissions, which implies that the service sector is less energy-intensive in terms of mitigating pollution in Pakistan. Moreover, the energy consumption has an inverted U-shaped effect on carbon emissions, which implies energy efficiencies and adoption of renewable energy has reduced pollution in the long run. The trade openness increases CO2 emissions in both the short term and long term. The quadratic term of income level has a negatively inelastic impact on CO2 emissions, which implies a very slow rate of improvement in environmental quality. On the other hand, the quadratic term of services shows a highly elastic impact on pollution, which induces the EKC hypothesis. Our robustness checks such as fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (OLS), and Toda and Yamamoto (TY) causality tests further confirm the existence of the service-induced EKC hypothesis in Pakistan. Moreover, there exists a unidirectional causality from energy consumption to CO2 emissions, a bidirectional causal relationship between economic growth and CO2 emissions, and a unidirectional causal linkage between services and CO2 emissions. Lastly, we discuss certain policy implications for designing appropriate environmental and energy policies to mitigate the pollution in Pakistan.

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Section: Cross-country Studiesmentioning

confidence: 99%

Section: Structural Break Analysismentioning

confidence: 99%

Section: Structural Break Analysismentioning

confidence: 99%

Section: Ardl Model With Structural Breakmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

et al. 2020

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Renewable energy, economic freedom and economic policy uncertainty: New evidence from a dynamic panel threshold analysis for the G-7 and BRIC countries

Işık

Simionescu

Ongan

et al. 2023

Stoch Environ Res Risk Assess

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This study aims to demonstrate the impact of renewable energy consumption (REC) on environmental degradation using the EKC hypothesis testing for the BRIC and G-7 countries. Two EKC models were created and tested, with Model 2 including REC and other independent variables such as economic freedom (EF) and economic policy uncertainty (EPU), which affect the level of renewable energy consumption and CO 2 emissions. Empirical findings indicate that the EKC hypothesis is verified faster in the REC-EF-EPU-based EKC model (Model 2) than in the EF-EPU-based EKC model (Model 1) for G-7 countries since the turning point takes place earlier in Model 2 than in Model 1 with REC. This suggests that renewable energy consumption accelerates the reduction of CO 2 emissions. Moreover, this earlier turning point results in lower environmental cleaning costs, less time vesting, and saving resources and money for G-7 countries. However, the study found no evidence supporting the EKC hypothesis for the BRIC countries.

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LPG consumption and environmental Kuznets curve hypothesis in South Asia: a time-series ARDL analysis with multiple structural breaks

Murshed

2020

Environ Sci Pollut Res

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Revisiting the environmental kuznets curve hypothesis: evidence from the ASEAN-5 countries with structural breaks

Cited by 30 publications

References 54 publications

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Testing Non-Linear Nexus between Service Sector and CO2 Emissions in Pakistan

Renewable energy, economic freedom and economic policy uncertainty: New evidence from a dynamic panel threshold analysis for the G-7 and BRIC countries

LPG consumption and environmental Kuznets curve hypothesis in South Asia: a time-series ARDL analysis with multiple structural breaks

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