Open AccessThe Environmental Kuznets Curve Hypothesis in Industrialized Countries: A Second Generation Econometric Approach
Author(s) -
Lotfi Mekhzoumi,
Nadjoua Harnane,
Abdellah Ayachi,
Okba Abdellaoui
Publication year - 2022
Publication title -
international journal of economics and financial issues
Language(s) - English
Resource type - Journals
ISSN - 2146-4138
DOI - 10.32479/ijefi.12771
Subject(s) - kuznets curve , economics , econometrics , panel data , econometric analysis , macroeconomics
This study contributes to the analysis of the Environmental Kuznets hypothesis (EKC) for 31 industrialized countries during 1980-2019 using long-term static and dynamic panel data methods. According to Pesaran's CD tests, the CSD issue is present in all variables. The EKC model had a long-run relationship, according to the results of the second-generation Pesaran CIPS unit roots and Westerlund tests. The estimation results of the static model (MG) and dynamic models (CS-DL and CS-ARDL) reached the same conclusion as the reliability of the EKC hypothesis, implying that environmental pollution and economic growth are linked in an inverted N-letter shape.