Testing the environmental Kuznets curve hypothesis: an empirical study for East African countries

Beyene, Sisay Demissew; Kotosz, Balázs

doi:10.1080/00207233.2019.1695445

Cited by 129 publications

(58 citation statements)

References 66 publications

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“…Achieving sustainable economic growth without any adverse effect on the natural environment is crucial these days. Demissew Beyene and Kotosz [45] shows that the long-run association between the economic growth and CO 2 emission is not as Kuznets assumed (an inverted-shape), but instead of bell-shaped which means that the relationship between GDP per capita and CO 2 emission is negative until the GDP per capita reaches to a certain point and once it reaches to a certain point the relationship between the stated variable is positive. The study conducted in the USA for the period of 1960-2013 by Dogan and Turkekul [46] to investigate the relationship between CO 2 emissions energy consumption, real output the square of real output, trade openness, urbanization, and financial development by using ARDL bound testing approach and Vector Error Correction Model (VECM) revealed that the main source of CO 2 emission is energy consumption in the USA and urbanization also has a positive impact on CO 2 emission.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Chinese FDI, Climate Change, and CO2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan

et al. 2020

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Pakistan’s agricultural sector growth is dwindling from the last several years due to insufficient foreign direct investment (FDI) and a drastic climate change-induced raise in temperature, which are severely affecting agricultural production. The FDI has paramount importance for the economy of developing countries as well as the improvement of agricultural production. Based on the time series data from 1984 to 2017, this paper aims to highlight the present situation of the agriculture sector of Pakistan and empirically analyze the short-run and long-run impact of Chinese foreign direct investment (CFDI), climate change, and CO2 emissions on agricultural productivity and causality among the variables. The Autoregressive Distributed Lag Model (ARDL) model and Granger Causality test were employed to find out the long-run, short-run, and causal relationships among the variables of interest. Furthermore, we have employed the Error Correction Model (ECM) to know the convergence of the equilibrium path. The bound test results verified the existence of a long-run association, and the empirical findings confirmed that Chinese FDI has a significant and positive impact, while climate change and CO2 emissions has negative impact on the agricultural growth of Pakistan both in the short-run and long-run. Granger Causality test results revealed that variables of interest exhibit bi-directional and uni-directional causality. The sector-wise flow of FDI reveals that the agriculture sector of Pakistan has comparatively received a less amount of FDI than other sectors of the economy. Based on the findings, it was suggested to the Government of Pakistan and policymakers to induce more FDI in the agriculture sector. Such policies would be helpful for the progress of the agriculture sector as well as for the economic growth of Pakistan.

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Section: Literature Reviewmentioning

confidence: 99%

Does Chinese FDI, Climate Change, and CO2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan

et al. 2020

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“…This implies that the amount of heat trapped in the atmosphere is in the upward trend. In the case of Sub-Saharan Africa, for instance, Demissew Beyene and Kotosz (2019) noted that carbon dioxide emissions have reached their peak between the year 1990 and 2014 (precisely in 2003). However, the study expressed that a decline in carbon emissions was experienced in Sub-Saharan Africa between 2007 and 2013 before starting to increase again in the year 2014.…”

Section: Introductionmentioning

confidence: 99%

The nexus of environmental sustainability and agro-economic performance of Sub-Saharan African countries

Adedoyin

Alola

Bekun

2020

Heliyon

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The increasing concern of environmental degradation and climate change impacts of agricultural-based activities are becoming more pronounced in the Sub-Sahara region of Africa especially due to urgent drive to meeting food, healthy diet, and economic needs. In retrospect. This novel study explores the relationship between agro-economic performance, the Real Gross Domestic Product (GDP), Total natural rent, urbanization and environmental degradation vis-à-vis (Carbon dioxide emissions) in a carbon function. The empirical analysis used a panel data for the period 1980–2014 for the selected countries in sub-Saharan Africa. The Kao test uncovers a cointegration between carbon dioxide emissions, Real Gross domestic product, Total natural rent, agriculture and urbanization. The panel Pooled Mean Autoregressive distributed lag model (PMG-ARDL) posits a positive and significant connection between the gross domestic product and CO 2 emissions in the long run. Our examination asserts that agricultural value-added reduces emissions in sub-Saharan Africa while urbanization and natural resource rent both increases CO 2 emissions in the long run. In addition, the causality analysis reveals a bidirectional link between agriculture value-added and CO 2 emissions. Essentially, policymakers in African nations must pay close attention to the issues of rural-urban drift as this leads to more emissions.

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“…References [33][34][35] [37,38]. Reference [39] has used PMG approach for 12 East African countries for the period from 1990 to 2013 and reported a U-shaped long-run relationship between per capita income and CO 2 emissions. Finally, using data from 31 developing countries and applying dynamic panel threshold framework, no evidence can be provided to support either the EKC hypothesis or causal relationship between CO 2 emission and economic growth [40].…”

Section: Studies That Do Not Support the Ekc Hypothesismentioning

confidence: 99%

“…Due to its numerous attractive features over the other alternative models, our study applies the recently developed PMG/ARDL approach, which is becoming increasingly popular in the empirical research. PMG estimation approach assumes that the parameters are heterogeneous across groups [39]. The PMG estimator combines pooling and averaging of coefficients.…”

Section: Model Specificationmentioning

confidence: 99%

Economic Growth and Carbon Dioxide Emissions in East African Countries: A Pooled Mean Group Approach

Teame¹,

Habte²

2020

IJBER

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In recent years, due to factors such as increases in greenhouse gas (GHG) and carbon dioxide (CO 2) emissions, global warming and climate changes has become a major threat for all countries. However, contrary to the deep-seated belief that human impact on the environment is negative and progressive, recent empirical research shows that certain types of pollutants follow an inverted-U shape or Environmental Kuznets curve (EKC), as income grows. The EKC hypothesis postulates that environmental degradation (pollution) increases up to a certain level, as income goes up; after that, it decreases. Thus, using the EKC hypothesis as a theoretical framework and applying Pooled Mean Group (PMG) approach, this paper examines the nexus between CO 2 emissions, economic growth, Foreign Direct Investment (FDI) and total population. The study uses panel data of 12 East African countries over the period 1981-2016. Our empirical result shows that there exists a monotonically increasing relationship between CO 2 emissions and economic growth both in the short-run and long-run, contrary to what is claimed by the EKC hypothesis. Moreover, per capita CO 2 emissions increase positively with respect to FDI and total population in the long-run. The result of the study also reports the existence of unidirectional causalities running from per capita GDP, FDI and total population to per capita CO 2 emissions in the long-run, while unidirectional short-run causalities was observed from GDP and FDI to CO 2 emissions, without any feedback effects. Therefore, these unidirectional causalities imply that CO 2 emission reduction or abatement measures can be implemented without having any adverse effect on the real output growth or economic growth, in East Africa.

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Testing the environmental Kuznets curve hypothesis: an empirical study for East African countries

Cited by 129 publications

References 66 publications

Does Chinese FDI, Climate Change, and CO2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan

Does Chinese FDI, Climate Change, and CO2 Emissions Stimulate Agricultural Productivity? An Empirical Evidence from Pakistan

The nexus of environmental sustainability and agro-economic performance of Sub-Saharan African countries

Economic Growth and Carbon Dioxide Emissions in East African Countries: A Pooled Mean Group Approach

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