EconPapers    
Economics at your fingertips  
 

Economic growth, environmental degradation and business cycles in Eswatini

Andrew Phiri ()

No 1901, Working Papers from Department of Economics, Nelson Mandela University

Abstract: This study investigates the impact of the business cycle on the Environmental Kuznets Curve (EKC) for the Eswatini Kingdom over the period 1970 – 2014. To this end, we employ the nonlinear autoregressive distributive lag (NARDL) model to capture the long-run and short-run cointegration effects between economic activity and greenhouse gas (GHG) emissions over different phases of the business cycle. Our findings reveal that economic activity only degrades the environment during upswing of the economic cycle whilst this relationship is insignificant during downswing of the cycle. We specifically compute a value of $3.57 worth of output been gained at the cost of a metric unit of emissions during economic expansionary phases. Altogether, these results insinuate much needed government intervention in the market for emissions via environmental tax reforms (ETR) which should be designed with countercyclical bias towards upswing the business cycle.

Keywords: Economic growth, Greenhouse gas (GHG) emissions, Environmental Kuznets Curve, Business cycles, Nonlinear autoregressive distributive lag (NARDL) model, Eswatini; Sub-Saharan Africa (SSA). (search for similar items in EconPapers)
JEL-codes: C13 C32 C51 K32 Q43 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2019-01, Revised 2019-01
New Economics Papers: this item is included in nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://repec.mandela.ac.za/RePEc/mnd/wpaper/paper.1901.pdf First version, 2019 (application/pdf)

Related works:
Journal Article: Economic growth, environmental degradation and business cycles in Eswatini (2019) Downloads
Working Paper: Economic growth, Environmental degradation and business cycles in Eswatini (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mnd:wpaper:1901

Access Statistics for this paper

More papers in Working Papers from Department of Economics, Nelson Mandela University Contact information at EDIRC.
Bibliographic data for series maintained by Andrew Phiri ().

 
Page updated 2020-03-30
Handle: RePEc:mnd:wpaper:1901