The Level of Pollution and the Economic Growth Factor: A Nonparametric Approach to Environmental Kuznets Curve

Abstract

This paper uses nonparametric method to study the relationship between economic growth and the level of pollution. The results indicate that as income increases the level of PM10 pollution rises and falls for low-and middle-income countries, respectively. Countries with GDP per capita above $32,000 experience an increased pollution level. Statistical tests show that nonparametric result provides better analysis than cubic specification, which dominates research works. Among the control variables in semiparametric setting, the higher the proportion of urban population, the higher is the level of pollutions while coal consumption and trade openness have no effect on PM10 pollution.

Assessing the impact of digital financial inclusion on PM2.5 concentration: evidence from China

“…By contrast, the eastern region exhibits no such correlation. Consistent with the EKC, this result implies that a high level of economic development may help to mitigate air pollution (Nigatu 2015;Hao and Liu 2016;Wang et al 2017;Luo et al 2018). In this case, economic development along with the continuing expansion of digital financial inclusion helps to reduce PM 2.5 concentration in the eastern region.…”

Green-production transitions and hazardous industrial discharge: A regional case study from China

“…Based on the extensive EKC literature, which has estimated CO 2 , SO 2 , and other industrial hazards discharge per unit output at the national level, 5 , 31 , 52 , 53 this study has focused on finding additional driving forces of the EKC, such as administrative ranking, and certifying whether the income level alters the relationship between hazardous discharge and economic growth. Although environmental disadvantages were found in developing countries, most studies omitted regional differences in identifying the sources of industrial pollution.…”

“…29 Similarly, Nigatu (2015) found that emissions from industrial hazardous PM10 have fallen in middle-income countries but have risen in low-income countries. 5 Obviously, there would be an inverted U-shape of pollution and economic growth in modernisation, whereas countries and economic zones that have a strong intention to maintain a high output might leave environmental protection behind. The above studies concluded that income-pollution relationships could be vague in countries that prioritise production expansion; hence, the EKC hypothesis does not always hold.…”

“…6 To testify to this logic, Cole (2000) attempted to prove that intellectualised industries would enable manufacturers to apply clean production with industrial modernisation. 29 Similarly, Nigatu (2015) found that emissions from industrial hazardous PM10 have fallen in middle-income countries but have risen in low-income countries. 5 Obviously, there would be an inverted U-shape of pollution and economic growth in modernisation, whereas countries and economic zones that have a strong intention to maintain a high output might leave environmental protection behind.…”

“…Therefore, the EKC in developing countries usually appears as an N-shape rather than a stable inverted U-shape. 4 Most studies have tested the Kuznets Curve at the country level, [5][6][7][8] thereby overlooking regional heterogeneity in natural endowments, political superiority, and administrative rankings, which are especially prevalent in low-income nations. This study addresses this research gap by considering administrative ranking to estimate whether there is a de-link between industrial hazards and economic growth in 267 selected cities and towns of China from 2007 to 2021.…”