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Reassessing the Environmental Kuznets Curve in Relation to Energy Efficiency and Economic Growth

Author

Listed:
  • Jie Zhang

    (School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China)

  • Majed Alharthi

    (Finance Department, College of Business, King Abdulaziz University, P.O. BOX 344, Rabigh 21911, Saudi Arabia)

  • Qaiser Abbas

    (Department of Economics, Ghazi University, Dera Ghazi Khan 32200, Pakistan)

  • Weiqing Li

    (School of International Economics and Tourism Management, Zhejiang International Studies University, Hangzhou 310023, China)

  • Muhammad Mohsin

    (School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China)

  • Khan Jamal

    (Institute for Region and Urban-Rural Development, Wuhan University, Wuhan 430072, China)

  • Farhad Taghizadeh-Hesary

    (Social Science Research Institute, Tokai University, Hiratsuka 259–1292, Kanagawa, Japan)

Abstract

Energy consumption and its efficiency are significant factors for economic growth and environmental stress. This study postulates the occurrence of the Environmental Kuznets Curve hypothesis (EKC) by using the Autoregressive-Distributed Lag (ARDL) model. Furthermore, a data envelopment analysis (DEA) model is used to measure energy efficiency, energy intensity, and environment to view the trajectory of EKC for the underline economies. For this purpose, a panel dataset from 1990–2013 of 15 developing countries is analyzed to verify the objectives mentioned above. The results of the panel ARDL support EKC’s theory for underline economies, as GDP positively impacts carbon emissions, while the square of GDP is negatively related. The DEA-based results found relatively low environmental conditions in these emerging economies due to high energy intensity and low energy efficiency. This outcome suggests that renewable energy sources must be treated as an essential factor for achieving sustainable economic goals without environmental degradation.

Suggested Citation

  • Jie Zhang & Majed Alharthi & Qaiser Abbas & Weiqing Li & Muhammad Mohsin & Khan Jamal & Farhad Taghizadeh-Hesary, 2020. "Reassessing the Environmental Kuznets Curve in Relation to Energy Efficiency and Economic Growth," Sustainability, MDPI, vol. 12(20), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8346-:d:426010
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