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The N-shaped Environmental Kuznets Curve: Evidences of Developing and Developed Countries

Document Type : ORIGINAL ARTICLE

Authors

1 Associate Professor, Department of Economics, Razi University, Kermanshah, Iran.

2 . M.A. Student, Department of Economics, Razi University, Kermanshah, Iran.

10.30473/egdr.2024.70318.6811

Abstract

The empirical test of the environmental Kuznets curve (EKC) hypothesis plays an important role in designing a macroeconomic model for sustainable economic development; The purpose of this study is to examine the relationship between growth and carbon dioxide emissions, emphasizing the role of renewable and fossil energy consumption in developing and developed countries. For this purpose, 26 developed countries and 41 developing countries have been considered in the period of 2000-2021. The results of the Westerland cointegration test (with cross-sectional dependence between countries) in developed countries and the Kao cointegration test (without cross-sectional dependence between countries) in developing countries indicate the existence of a long-term relationship between model variables in both groups of countries. FGLS and PCSE estimators show that in both groups of countries, renewable energy consumption has a positive and significant impact on the quality of the environment, and the absolute value of this impact is greater in developed countries than in developing countries, while this result for Fossil energy is the opposite. The N-shaped growth-pollution relationship is confirmed in both groups of countries. Therefore, it cannot be expected that pollution emissions will decrease in the long term with the increase in production. Therefore, the claim that "economic growth is both the cause and the solution of environmental destruction" is doubtful. This study highlights the importance of promoting green energy in order to achieve sustainable development and combat global warming.

Keywords

References
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Economic Growth and Development Research
Volume 14, Issue 55
September 2024
Pages 109-93
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History
  • Receive Date: 17 January 2024
  • Revise Date: 15 April 2024
  • Accept Date: 21 February 2024
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