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

Mario Gomez () and Jose Carlos Rodriguez ()
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Mario Gomez: Economic and Business Research Institute, Universidad Michoacana de San Nicolas de Hidalgo, Mexico
Jose Carlos Rodriguez: Economic and Business Research Institute, Universidad Michoacana de San Nicolas de Hidalgo, Mexico

EconoQuantum, Revista de Economia y Finanzas, 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 hypothesis 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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Persistent link: https://EconPapers.repec.org/RePEc:qua:journl:v:17:y:2020:i:2:p:57-79

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