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Environmental Kuznets curve for deforestation in Eastern Europe: a panel cointegration analysis

Eleni Zafeiriou (), Grigorios L. Kyriakopoulos (), Veronika Andrea () and Garyfallos Arabatzis ()
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Eleni Zafeiriou: Democritus University of Thrace
Grigorios L. Kyriakopoulos: National Technical University of Athens (NTUA)
Veronika Andrea: Democritus University of Thrace
Garyfallos Arabatzis: Democritus University of Thrace

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2023, vol. 25, issue 9, No 14, 9267-9287

Abstract: Abstract Deforestation, a major cause of climate change, in Eastern European countries has been an activity coupled with agricultural expansion mainly within the time period of political transition. The present study examines the environmental impact of deforestation and its association with agricultural income as synopsized in environmental Kuznets curve. More specifically, carbon emissions generated by deforestation per hectare (COD)–agricultural income relationship as reflected by the net value added (NVA) per capita of the rural population are studied with the assistance of three panel data models, namely the fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS) and Poold Mean Group autoregressive distributed lag (PMG-ARDL) cointegration technique. The research findings do not validate the environmental Kuznets curve (EKC) in its traditional form, but they verify the inverse N-shaped trajectory (FMOLS, DOLS), or N-shaped trajectory (PMG–ARDL methodology). The results provide policy makers with motivation to focus on agro-economic expansion based on productivity or use of marginal lands and not on land-use change based on deforestation.

Keywords: Deforestation; Agriculture; Environmental Kuznets curve; Policy; Economic growth; Land-use land-cover change; Fully modified ordinary least squares (FMOLS); Autoregressive distributed lag (ARDL) (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10668-022-02435-y

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