Environmental Kuznets curve: evidences from developed and developing economies

Abstract

Previous studies show that the environmental quality and economic growth can be represented by the inverted U curve called Environmental Kuznets Curve (EKC). In this study, we conduct empirical analyses on detecting the existence of EKC using the five common pollutants emissions (i.e. CO2, SO2, BOD, SPM10, and GHG) as proxy for environmental quality. The data spanning from year 1961 to 2009 and cover 40 countries. We seek to investigate if the EKC hypothesis holds in two groups of economies, i.e. developed versus developing economies. Applying panel data approach, our results show that the EKC does not hold in all countries. We also detect the existence of U shape and increasing trend in other cases. The results reveal that CO2 and SPM10 are good data to proxy for environmental pollutant and they can be explained well by GDP. Also, it is observed that the developed countries have higher turning points than the developing countries. Higher economic growth may lead to different impacts on environmental quality in different economies.

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