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Testing the Environmental Kuznets Curve Hypothesis: An Empirical Study for Peru

Author

Listed:
  • Benoit Mougenot

    (Grupo de Investigaci n en Innovaci n y Mercados Sostenibles, Facultad de Ciencias Empresariales, Universidad San Ignacio de Loyola, Lima, Per ;)

  • Rosa Pamela Durand Santa Mar a

    (Economics and International Business, Universidad San Ignacio de Loyola, Lima, Per .)

  • Claudia Lucia Koc Olcese

    (Economics and International Business, Universidad San Ignacio de Loyola, Lima, Per .)

Abstract

This research analyzes the Peruvian engagement against climate change through the impact of the per capita income on the environmental pollution in the national scenario during the annual period of 1980-2019. For this, the logic of the Environmental Kuznets Curve will be used, in which an inverted U curve shape affirms that the economic growth is favorable for the environment in the long term because an optimal income point is reached and pollution begins to decline. For this analysis, the national exports are included as a third variable, and also is considered a cubic regression equation to the original Kuznets model. Through the estimation by Dickey-Fuller and Phillips-Perron unit root tests, Granger Causality Test, the Vector Autoregression Model (VAR) method and the Forecast Graphics, it is shown that, similar to other countries of the region, Peru is actually on the initial part of the curve, where income and pollution have a growing direct relation. Finally, the models that fitted the relationship of these variables were the original model and the model with exports included.

Suggested Citation

  • Benoit Mougenot & Rosa Pamela Durand Santa Mar a & Claudia Lucia Koc Olcese, 2022. "Testing the Environmental Kuznets Curve Hypothesis: An Empirical Study for Peru," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 193-199.
  • Handle: RePEc:eco:journ2:2022-01-24
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    References listed on IDEAS

    as
    1. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    2. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    3. Francisco Javier Correa Restrepo & Andrés Felipe Vasco Ramírez & Catalina Pérez Montoya, 2005. "La curva medioambiental de Kuznets: evidencia empírica para Colombia," Revista Semestre Económico, Universidad de Medellín, May.
    4. Iddisah Sulemana & Harvey S. James & James S. Rikoon, 2017. "Environmental Kuznets Curves for air pollution in African and developed countries: exploring turning point incomes and the role of democracy," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 6(2), pages 134-152, April.
    5. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
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    Cited by:

    1. Masao Tsujimoto, 2024. "Airlines’ Corporate Growth and Environmental Conservation: Evidence from Global Carriers and Forwarders," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 260-280, May.

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    More about this item

    Keywords

    Economic Growth; Environmental Pollution; Kuznets Environmental Curve; Exports; Peru;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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