Exploring the link between economic growth, energy consumption, and environmental pollution in G20

Naib Alakbarov, Murat Gündüz and Mahmut Ünsal Şaşmaz

Natural Resources Forum, 2025, vol. 49, issue 2, 1445-1461

Abstract: This study examined the interplay between economic growth and environmental pollution in G20 countries, employing panel data analysis techniques. The primary aim was to assess the validity of the Environmental Kuznets Curve (EKC) hypothesis using contemporary econometric methods, while considering the pertinent literature. Preliminary findings of the study affirm the EKC hypothesis, which posits that environmental pollution initially escalates with economic growth but diminishes after surpassing a specific income threshold. Nevertheless, upon integrating per capita energy consumption into the analysis, the descending trajectory postulated in the inverted U‐shaped hypothesis emerged as statistically non‐significant. This undermines the EKC hypothesis's assertion that industrialized nations with elevated per capita incomes predominantly contribute to reduced environmental pollution. Consequently, in the context of developed nations, this research bolsters the prevailing consensus in scholarly discourse that economic growth augments resource consumption, thereby adversely impacting environmental quality.

Date: 2025
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https://doi.org/10.1111/1477-8947.12440

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Persistent link: https://EconPapers.repec.org/RePEc:wly:natres:v:49:y:2025:i:2:p:1445-1461

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