An Empirical Analysis of Fishery Kuznets Curve Hypothesis: Evidence from OECD Countries

Olatunji Shobande and Lawrence Ogbeifun ()
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Lawrence Ogbeifun: University of Aberdeen, UK

Journal of Developing Areas, 2023, vol. 57, issue 2, 1-16

Abstract: Fish farms are occasionally built on delicate natural habitats, which can have severe environmental effects. Many industrial fishing methods also devastate aquatic habitats with the addition of overfishing practices. While environmentalists and academics have been concerned about the rapid extinction of fishery resources, the existing evidence is still inconclusive. This study examined whether catching overfishing could explain the environmental Kuznets curve (EKC) hypothesis among Organisation for Economic Cooperation and Development (OECD) countries. The study used four empirical strategies, which are framed in the panel time series analysis. (a) It assessed the prior behaviour of the variables based on second-generation panel unit roots tests using Cross-sectional ADF(CADF) and Cross-sectional IPS. (b) It also assessed the potential long-run relationship among the variables using the Westerlund Panel Cointegration test. (c) It explores the fishery Kuznets curve for OECD countries using Cross-sectional Dependency - Autoregressive Distributed Lag (CS-ARDL) and Augmented Mean Group (AMG) methodology. (d) It also examines the short direction of causality among the variables using the Dumitrescu–Hurlin Panel Granger Causality test, which is built on standardised panel statistics suitable for small sample properties, even in the presence of cross-sectional dependency. Five main findings can be deduced from our analysis. Firstly, the preliminary check confirms are only stationary only after the first difference. Secondly, the analysis also suggests that there is a long-run relationship among the variables. Thirdly, the findings showed that fish exploration has a negative effect on carbon emissions. Fourthly, the quadratic term of economic growth unidirectionally Granger causes CO2 emissions. Fifthly, we found evidence in support of the EKC hypothesis across OECD countries. Finally, our results highlighted the importance of fishery control in promoting environmental quality among OECD countries. We recommend reform in public policy that encourages sustainable fishing along with innovative research into modern fishing methods that reduce emissions. A better method of fishing can be developed with the support of cutting-edge research, which can also help reduce water pollution and the threat that overfishing poses to biodiversity.

Keywords: Fishery; Kuznets Curve; time Series; environment; OECD countries (search for similar items in EconPapers)
JEL-codes: Q12 Q15 Q54 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.57:year:2023:issue:2:pp:1-16

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