Environmental Kuznets Curve for Carbon Dioxide Emissions and Economic Growth in Algeria

Mohammed Touitou and Raquel Langarita
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Mohammed Touitou: Mohammed Touitou (corresponding author) is at the Faculty of Economics and Business, University of Algiers, Algeria.
Raquel Langarita: Raquel Langarita is at the Department of Economic Analysis, University of Zaragoza, Zaragoza, Spain. E-mail: rlan@unizar.es

Margin: The Journal of Applied Economic Research, 2021, vol. 15, issue 4, 418-432

Abstract: This article examines how economic growth affects the environment through the lens of carbon dioxide (CO 2 ) emissions, by testing the validity of the environmental Kuznets curve (EKC) for the case of Algeria during the period 1973–2016. For this, the auto regressive distributed lag (ARDL) method is used. The results of the econometric analysis confirm the existence of a positive long-term relationship between CO 2 emissions and real GDP and show that the direction of this relationship goes from economic growth to CO 2 emissions according to Granger causality tests. Specifically, for a developing country like Algeria, economic growth determines the level of emissions. This implies that an energy policy in favour of the environment can be put in place without risking negative repercussions on economic growth. In addition, the results of the ARDL regression validate EKC’s hypothesis: in the first phase, economic growth leads to a higher level of CO 2 emissions, however, when a given threshold (inflection point) is reached, these emissions decrease. JEL Codes: O10, O47, Q50, Q53

Keywords: Environmental Kuznets curve (EKC); Carbon Dioxide emission; Economic growth; ARDL model; Algeria (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:mareco:v:15:y:2021:i:4:p:418-432

DOI: 10.1177/09738010211036261

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