Role of Institutional Quality on Environmental Kuznets Curve: A Comparative Study in Developed and Developing Countries

Lau, Lin‐Sea; Choong, Chee‐Keong; Ng, Cheong-Fatt

doi:10.1108/s2514-465020180000006007

Cited by 43 publications

(26 citation statements)

References 65 publications

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“…Utilising recently developed panel data estimators that account for cross-sectional dependence and parameter heterogeneity, the EKC hypothesis is verified for the panel with three of the four estimators (MG, AMG, and PMG). The similar results were obtained by Lau et al (2018) who studied the EKC hypothesis in 18 OECD countries for the period 1995-2015. However, the main aim of the study was to investigate the effects of electricity production from a nuclear source, electricity production from non-renewables and trade openness on CO2 emissions.…”

Section: Selected Literature Review For Groups Of Countriessupporting

confidence: 85%

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A Literature Survey of the Environmental Kuznets Curve

Mitić

Kresoja

Minović

2019

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Since the 1970s, the issue of environmental degradation has received considerable attention. Environmental Kuznets curve is one of the most well-known hypotheses that explains the relationship between economic growth and environmental pollution. It represents an important model that enables policymakers to deliver quality information-based decisions. In this paper we provide the theoretical framework of the Environmental Kuznets curve and examine existing literature on the EKC hypothesis. The systematic literary survey includes studies conducted for single countries as well as for group of countries. The most of the studies were testing empirically existence of inverted U-shaped relationship between economic growth and carbon dioxide emissions. Due to the chosen time period, set of independent variables and methodological framework, the results are inconclusive in nature, which is consistent with previous literature surveys on the same topic.

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Section: Selected Literature Review For Groups Of Countriessupporting

confidence: 85%

“…The overall results support the EKC hypothesis. Lau at al. (2018) continued examining the EKC phenomenon.…”

Section: Selected Literature Review For Groups Of Countriesmentioning

confidence: 99%

A Literature Survey of the Environmental Kuznets Curve

Mitić

Kresoja

Minović

2019

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“… β 1 is greater than zero, β 2 is less than zero, and β 3 is greater than zero, and finally (g) there is an opposite to N‐shaped relationship, that is, β 1 is less than zero, β 2 is greater than zero and β 3 is less than zero. These forms of EKC give a conclusive meaning for emission‐growth nexus across the globe (see, Cho, Chu, & Yang, 2014; De Vita, Katircioglu, Altinay, Fethi, & Mercan, 2015; Dinda, 2004; Fodha & Zaghdoud, 2010; Jiang, Ye, Zhou, & Zhang, 2019; Lau, Choong, & Ng, 2018; Saboori & Sulaiman, 2013).…”

Section: Data Source and Methodological Frameworkmentioning

confidence: 99%

Go‐for‐green policies: The role of finance and trade for sustainable development

et al. 2020

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The relationship between carbon dioxide (CO2) emissions and income per capita (GDPpc) is widely discussed in the environmental literature, generally known as ‘Environmental Kuznets Curve (EKC)’. The study primarily contributes to the literature on the EKC by (a) focusing on a sample of less developed countries (LDCs), (b) controlling for per capita GDP scaled by a factor of two (in logs), (c) controlling for lagged per capita GDP squared (in logs), and (d) controlling for per capita GDP cubed (in logs). The effect of environmental regulation on trade and FDI inflows evaluates the ‘Pollution Haven Hypothesis (PHH)’ across nations. The extended version of the EKC (EV‐EKC) framework validates the population‐based emission, generally known as ‘IPAT hypothesis’ where (I) is measured by air pollution (i.e. CO2 emissions), (P) is measured by population growth, (A) is measured by GDPpc, and (T) is measured by FDI inflows, trade, and energy demand. The study selected a panel of 24 LICs for the period of 2002–2016 for robust inferences. The results supported the inverted U‐shaped EKC hypothesis under the new beta's transformation in panel econometric techniques. The results partially supported the ‘PHH’ where FDI inflows are significantly associated with the CO2 emissions; while trade openness is not statistically significant in the prescribed regression apparatus. Population growth decreases carbon emissions to support the ‘genius’ principle, which rejected the IPAT hypothesis, whereas energy demand increases carbon emissions across countries.

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“…Further, Beckerman (1992) argued that although economic activities usually increase environmental degradation at the earlier stage of development, in the end, the best possible way to accomplish a decent environment in most countries is to become rich. Over the past few years, numerous empirical studies (Barra and Zotti, 2018;Lau et al, 2018;Shahbaz and Sinha, 2019;Adu and Denkyirah, 2019;Beyene and Kotosz, 2020) have explored to identify the existence of EKC. Due to a lack of uniform environmental degradation indicators, the existence of EKC has varied with the change in indicators of environmental degradation.…”

Section: Literature Reviewmentioning

confidence: 99%

A comparative analysis of environmental quality and Kuznets curve between two newly industrialized economies

Sen

Abedin

2020

MEQ

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PurposeDue to large amounts of coal burning, huge carbon dioxide emission and poor environmental quality, it is important to identify whether environmental Kuznets curve exists in China and India since in downward period of environmental Kuznets curve, economic growth in these countries will largely contribute to world environmental quality. Further, it helps to make a comparative analysis between China and India on how economic growth will contribute to the environmental quality in both upward and downward period of environmental Kuznets curve due to energy consumption.Design/methodology/approachThis study uses the data of carbon dioxide emission, per capita GDP and energy consumption from 1972 to 2017 to identify individual and panel-level environmental Kuznets curve of China and India. Before going to regression and causality analysis, unit root and cointegration tests are performed.FindingsThis study finds the existence of environmental Kuznets curve in China and India at both individual and panel level. Further, due to high energy consumption, environmental quality in China will deteriorate at a lower rate in the long run than that of India. Next, the increase in economic growth or per capita GDP in the long run will deteriorate environmental quality at a lower rate in China than that of India. Besides, with the zero level of energy consumption and per capita GDP, the environmental quality of China will be worse than that of India. However, increase in per capita GDP after threshold level will improve environmental quality in India at a higher rate than that of China.Research limitations/implicationsIt helps to formalize the comparative relationship between the two large Asian economies by knowing the influence of economic growth on environmental degradation due to energy consumption. However, this study cannot conclude exactly when China and India can avail the downturn in environmental Kuznets curve.Originality/valueIt firstly establishes a link among energy consumption, economic growth and environmental quality between China and India including comparative pace in both upward and downward period of environmental Kuznets curve.

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Role of Institutional Quality on Environmental Kuznets Curve: A Comparative Study in Developed and Developing Countries

Cited by 43 publications

References 65 publications

A Literature Survey of the Environmental Kuznets Curve

A Literature Survey of the Environmental Kuznets Curve

Go‐for‐green policies: The role of finance and trade for sustainable development

A comparative analysis of environmental quality and Kuznets curve between two newly industrialized economies

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