Reassessing the Environmental Kuznets Curve in Relation to Energy Efficiency and Economic Growth

Jie Zhang, Majed Alharthi, Qaiser Abbas, Weiqing Li, Muhammad Mohsin, Khan Jamal and Farhad Taghizadeh-Hesary ()
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Jie Zhang: School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
Majed Alharthi: Finance Department, College of Business, King Abdulaziz University, P.O. BOX 344, Rabigh 21911, Saudi Arabia
Qaiser Abbas: Department of Economics, Ghazi University, Dera Ghazi Khan 32200, Pakistan
Weiqing Li: School of International Economics and Tourism Management, Zhejiang International Studies University, Hangzhou 310023, China
Muhammad Mohsin: School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
Khan Jamal: Institute for Region and Urban-Rural Development, Wuhan University, Wuhan 430072, China

Sustainability, 2020, vol. 12, issue 20, 1-21

Abstract: Energy consumption and its efficiency are significant factors for economic growth and environmental stress. This study postulates the occurrence of the Environmental Kuznets Curve hypothesis (EKC) by using the Autoregressive-Distributed Lag (ARDL) model. Furthermore, a data envelopment analysis (DEA) model is used to measure energy efficiency, energy intensity, and environment to view the trajectory of EKC for the underline economies. For this purpose, a panel dataset from 1990–2013 of 15 developing countries is analyzed to verify the objectives mentioned above. The results of the panel ARDL support EKC’s theory for underline economies, as GDP positively impacts carbon emissions, while the square of GDP is negatively related. The DEA-based results found relatively low environmental conditions in these emerging economies due to high energy intensity and low energy efficiency. This outcome suggests that renewable energy sources must be treated as an essential factor for achieving sustainable economic goals without environmental degradation.

Keywords: environmental Kuznets curve; CO 2 emission; energy efficiency; economic growth; panel ARDL; DEA (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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