Revealing the complexity in the environmental Kuznets curve set in a European multivariate framework

Djula Borozan ()
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Djula Borozan: Josip Juraj Strossmayer University of Osijek

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2022, vol. 24, issue 7, No 7, 9165-9184

Abstract: Abstract Despite considerable research attention given to the environmental Kuznets curve (EKC), little has been known about its true form and particularly the mechanisms that explain it. Using panel quantile regression, this paper designs a multivariate framework for exploring the EKC in the European Union in the period 2004–2017 and unveils the distributional heterogeneity effect hidden therein. It reveals that complexity in the relationship under consideration turned out to be higher than evidenced or assumed in the literature so far since its shape changed the form across the conditional distribution of greenhouse gas (GHG) emissions. Moreover, the paper shows that the use of efficient energy and renewable energy has the power to outweigh the scale effect. Simultaneously, it questions the efficiency of environmental and energy taxes and opens the issue of the rebound effect and the association between energy poverty and GHG emissions.

Keywords: Environmental Kuznets curve; Classical effect; Substitution effect; Regulation effect; Energy poverty; Panel quantile regression (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10668-021-01817-y

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