Does CO2 emissions–economic growth relationship reveal EKC in developing countries? Evidence from Kazakhstan

Fakhri Hasanov · Jeyhun I. Mikayilov · Shahriyar Mukhtarov · Elchin Suleymanov

102 citations0/0 files storedEnvironmental Science and Pollution Research

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Energy, Environment, Economic Growth Climate Change Policy and Economics Vehicle emissions and performance

Abstract

This paper investigates the CO 2 emissions–economic growth relationship in Kazakhstan for the period 1992–2013. Johansen, ARDLBT, DOLS, FMOLS, and CCR cointegration methods are used for robustness purpose. We start with the cubic functional form to rule out any misleading results that can be caused by misspecification. Although the estimation results suggest “U”-shaped relationship, the turning point of income is out of the period. It means that the impact of economic growth on CO 2 is monotonically increasing in the long run indicating the Environmental Kuznets Curve (EKC) hypothesis does not hold for Kazakhstan. Moreover, we calculate that the income elasticity of CO 2 is about unity. The paper concludes that the Kazakhstani policymakers should focus on less energy-intensive sectors as well as using more renewable energy in order to avoid higher pollution effects of economic growth. They may also set new policy regulations for CO 2 reduction.

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