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Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?

Muhammad Shahbaz (), Ilham Haouas and Thi Hong Van Hoang

Emerging Markets Review, 2019, vol. 38, issue C, 197-218

Abstract: Based on a sample of 1974–2016 annual data of Vietnam, we show that the EKC does not exist in the short run but only in the long run. However, the N-shape describes better the long-run income-pollution relationship. This implies that Vietnam can expect a temporary reduction in CO2 emissions at a given stage of economic growth. However, this will be followed by a further increase of CO2 emissions after reaching another income turning point. The Vietnamese government should thus focus on long-term economic and environmental strategies. A robustness check shows that these results are not impacted by the variables' selection.

Keywords: CO2 emissions; Economic structure; Environmental Kuznets curve (EKC); N-shape (search for similar items in EconPapers)
JEL-codes: Q5 (search for similar items in EconPapers)
Date: 2019
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