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Analysis of the environmental Kuznets curve in the nafta Countries, 1971-2014

Mario Gomez () and Jose Carlos Rodriguez ()
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Mario Gomez: Universidad Michoacana de San Nicolas de Hidalgo
Jose Carlos Rodriguez: Universidad Michoacana de San Nicolas de Hidalgo

EconoQuantum, Revista de Economia y Negocios, 2020, vol. 17, issue 2, 57-79

Abstract: Objetive: This paper analyzes the environmental Kuznets curve (ekc) for the North American Free Trade Agreement (nafta) countries during 1971-2014.Methodology: In this regard, unit root, co-integration, and causality tests are applied making use of the data panel approach.Results: Results suggest that the series in this research are integrated of order one, and a long-run relationship among variables is observed. Besides, the ekc hypoth-esis is confirmed. In addition, the analysis shows that renewable energy and trade openness contribute to reducing pollution in these countries.Limitations/implications: Further research should be done to include other variables such as financial development and human capital.Originality/value: The present paper contributes to understanding the relationship between trade openness and renewable energy consumption, on the one hand, and pollution, on the other. Conclusions: Policies concerned to trade openness and environmental issues should consider renewable energy and trade to reduce pollutant emissions in these countries.

Keywords: Causality; co-integration; environmental Kuznets curve; pollution; renewable energy. (search for similar items in EconPapers)
JEL-codes: C23 Q50 (search for similar items in EconPapers)
Date: 2020
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Handle: RePEc:qua:journl:v:17:y:2020:i:2:p:57-79