To examine environmental pollution by economic growth and their impact in an environmental Kuznets curve (EKC) among developed and developing countries.

Abstract

This study analyzes the core energy consumption among countries specific variables by Environmental Kuznets Curve hypothesis (EKC), for a panel data of 29 (14 developed and 15 developing) countries during the period of 1977-2014. By assessing Generalized Method of Moments (GMM) regressions with first generation test such as common root, individual Augmented Dickey-Fuller (ADF), and individual root-Fisher-PP have been computed individually, the results confirm the EKC hypothesis in the case of emissions of solid, liquid, gases, manufacturing industries and also construction. Hence, we computed the cointegration test by Pedroni Kao from Engle-Granger based and Fisher. Onward, since the variable are co-integrated, a panel vector error correction model is estimated in GDP per capita, emission from manufacturing industries, arms import, commercial service export and coal rent, order to perform Pairwise Granger Causality test and indicate Vector Error Correction (VEC), with co-integration restrictions. Moreover, the statistical finding from VEC short-run unidirectional causality from GDP per capita growth to manufacturing industries and coat rent, as well as the causal link with manufacturing industries and commercial service export. Additionally, since there occurred no causal link among economic growth, arm import and coal rent.

The crypto‐trade volume, GDP, energy use, and environmental degradation sustainability: An analysis of the top 20 crypto‐trader countries

“…VECM is more adequate and appropriate to determine the causality (Granger, 1988) between the series when variables are integrated at I(1). The selection of an optimal number of lags through the vector autoregression (VAR) model is the first to employ VECM (Kong & Khan, 2019; Lu, 2017). The lag length 2 is more appropriate for the sample of study as per the suggestion of SIC.…”

Does income inequality reshape the environmental Kuznets curve (EKC) hypothesis? A nonlinear panel data analysis

“…There are many studies that establish panel vector error correction models and conduct pairwise Granger causality tests. Kong Y et al(Y and R, 2019) used the EKC Hypothesis to study the data of 29 countries from 1977 to 2014. The results demonstrate the validity of the EKC hypothesis in the manufacturing and construction industries.…”

Information and communication technologies and sustainable development in ECOWAS subregion: Evidence from a panel cointegration analysis

“…Scholars have since been investigating the validity or otherwise of the inverted U‐shaped EKC hypothesis for different economies using different variables, time frame, tools of analysis, and so on. Studies by Grossman and Krueger (1991), Shafik and Banyopadhyay (1992), Kong and Khan (2019), Sisay and Belaz (2020), Phong Le and Ozturk (2020), and Maneejuk et al (2020) all confirm the existence of EKC. Grossman and Krueger (1991) studying the impact of NAFTA on the environment validated EKC linkage between the environment and two pollutants of interest such as sulfur dioxide and suspended particulate matter, thus affirming the existence of EKC hypothesis.…”