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Current Validity of Environmental Kuznets Curve with Panel Data Methods

Year 2022, , 981 - 991, 16.10.2022

Halime Arslan Gürdal , Hüseyin Gürbüz

https://doi.org/10.37880/cumuiibf.1139068

Abstract

With environmental problems coming to the fore on a global scale, it has emerged that environmental problems cannot be handled independently from economic development and social factors, and that the dimensions and direction of the relations of these factors with each other should be examined as a whole. In this direction, the Environmental Kuznets Curve (ÇKE) hypothesis has been put forward regarding the existence and form of the relationship between environmental quality and economic growth. This hypothesis basically argues that there is a relationship between environmental degradation and economic growth, and while environmental degradation is observed in the first phase of economic growth, environmental degradation gradually decreases after economic growth reaches a certain point.
The aim of this study is to investigate whether the Environmental Kuznets Curve hypothesis is valid for the G7 countries (Germany, United States of America, England, Italy, France, Japan and Canada) using linear panel data methods. Covering the 1981-2018 period, GDP per capita, CO2 emissions per capita and population growth rate variables are considered as data set. First, the cross-section dependencies of the series of the variables used in the study were examined and their stationarities were analyzed by panel unit root tests. In order to test whether there is a long-term relationship between the variables in the panel, panel cointegration tests were applied and the validity of the EKC was tested by estimating the long-term coefficients. As a result of the analysis, it was determined that the Environmental Kuznets curve is valid in G7 countries. Accordingly, when the per capita GDP reaches $34453.59, it is determined that there will be a decreasing trend in environmental degradation.

Keywords

Environmental Kuznets Curve Linear Panel Data Models G7 Countries.

References

  • Akbostancı, E., Türüt-Aşık, S. ve Tunç, G.İ. (2009). The Relationship Between Income and Environment in Turkey: Is There An Environmental Kuznets Curve?. Energy Policy, 37(3), 861-867.
  • Antweiler, W., Copeland, B. R. ve Taylor M. S. (2001). Is Free Trade Good for the Environment?. American Economic Review, 91(4): 877-908.
  • Başar, S. ve Temurlenk, M.S. (2007). Çevreye Uyarlanmış Kuznets Eğrisi: Türkiye Üzerine Bir Uygulama”, Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 21(1):1-12
  • Breusch, T. S. ve Pagan, A. R. (1980). The Lagrange Multiplier Test and İts Applications to Model Specification in Econometrics. The Review of Economic Studies, 47(1):239- 253.
  • Cole, M.A. (2004). Trade, the pollution haven hypothesis and environmental Kuznets curve: examining the linkages. Ecological Economics, 48(1):71–81.
  • Dijkgraaf, E. ve Vollebergh, H.R.J. (2001). A Note on Testing for Environmental Kuznets Curves, OCFEB Research Memorandum 0103. Environmental Policy, Economic Reform and Endogenous Technology Working Paper Series.
  • Dinda, S. (2004). Environmental Kuznets Curve Hypothesis: A Survey. Ecological Economics, 49(4): 431-455.
  • Dollar, D. ve Kraay, A. (2004). Trade, Growth, and Poverty. Econ papers, 114(493):22-49.
  • Fodha, M. ve Zaghdoud, O. (2010). Economic Growth and Pollutant Emissions in Tunisia: An Empirical Analysis of The Environmental Kuznets Curve. Energy Policy, 38(2):1150-1156.
  • Gengenbach, C., Urbain, J. P. ve Westerlund, J. (2016). Error correction testing in panels with common stochastic trends. Journal of Applied Econometrics, 31(6): 982-1004.
  • Grossman, G. (1993). Pollution and growth: what do we know?, Centre for Economic Policy Research CEPR DP-848. London.
  • Grossman, G. ve Kreuger, A. (1991). Environmental Impacts of a North American Free Trade Agreement. NBER Working Paper, No. 3914, Erişim Tarihi: 24.05.2013.
  • Grossman, G. ve Kreuger, A. (1995). Economic Growth and the Environment. The Quarterly of Journal Economics, 110(2):353-377.
  • Gürlük, S. (2009). Economic growth, industrial pollution and the human development in the Mediterranean Region. Ecological Economics, 68, 2327-2335. http://www.nber.org/papers/w3914.pdf.
  • Jena, P.R. ve Grote, U. (2008) "Growth–trade–environment nexus in India", Economics Bulletin, Access Econ, 17(11):1-11.
  • Kaufmann, K. R., Davidsdottir, B., Garnham, S. ve Pauly,P. (1998). The determinants of atmospheric SO2 concentrations: Reconsidering the environmental Kuznets Curve. Ecological Economics, 25, 209-220.
  • Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45(1):2-28.
  • Luzzati, T. ve Orsini, M. (2010b). The Robustness of the Environmental Kuznets. Advances in Energy Studies 2010. Barcelona.
  • Luzzati, T., ve Orsini, M. (2010a,). A robustness exercise on the EKC for CO2 emissions. Advances in Energy Studies 2010. Erişim: 26, 2, 2011, http://www.societalmetabolism.org/ aes2010/ Proceeds/ dıgıtal procıdıngs_files/ presentatıons/ LuzzatiOrsiniAES2010.pdf.
  • Orubu, C.O. ve Omotor, D. G. (2011). Environmental Quality And Economic Growth: Searching For Environmental Kuznets Curves For Air And Water Pollutants İn Africa. Energy Policy, 39(7):4178-4188.
  • Panayotou, T. (1993). Emprical test and policy analysis of environmental degradation at different stages of economic development. Working Paper, P238. Technology and Employment Programme, International Labour Office. Geneva.
  • Panayotou, T. (1997). Demystifying the environmental Kuznets curve: Turning a black box into a policy tool. Environment and Development Economics, 2, 465-484.
  • Pesaran, M. H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels, http://ftp.iza.org/dp1240.pdf (21.10.2017)
  • Pesaran, M. H. (2006). Estimation and Inference in Large Heterogeneous Panels with A Multifactor Error Structure. Econometrica, 74(4):967-1012.
  • Pesaran, M. H. (2007). A Simple Panel Unit Root Test in The Presence of Cross‐Section Dependence. Journal of Applied Econometrics, 22(2): 265-312.
  • Selden, T. M. ve Song, D. (1994). Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?. Journal of Environmental Economics and Management, 27(2):147-162.
  • Shafik, N. ve Bandyopadhyay, S. (1992). Economic Growth and Environmental Quality: Time Series and Cross-Country Evidence. Background Paper for the World Development Report. Washington, DC: World Bank.
  • Solakoğlu, E. (2007). The effect of the property rights on the relationship between economic growth and pollution for the transition economies. Eastern European Economics, 45(1): 77-94.
  • Stern, David I. (2004). Environmental Kuznets Curve. Encyclopedia of Energy, 2, 517-525.
  • Stern, David I. ve Common, M.S. (2001). Is There an Environmental Kuznets Curve for Sulfur?. Journal of Environmental Economics and Environmental Management, 41, 162-178.
  • Swamy, P. A. V. B. (2012). Statistical inference in random coefficient regression models (Vol. 55). Springer Science & Business Media.
  • Şahbaz, A. ve Tanyeri, M. (2018). Küçük ve orta büyüklükteki işletmelerde inovasyona yönelik tutumlar ve inovasyon engelleri: Çanakkale ilinde KOBİ’ler üzerine bir araştırma. ÇOMÜ Uluslararası Sosyal Bilimler Dergisi, 3(2):233-263. https://dergipark.org.tr/download/articlefile/564694
  • Torras, M., ve Boyce, J.K. (1998). Income inequality and pollution: a reassessment of the Environmental Kuznets Curve. Ecological Economics, 25, 47-60.
  • Tutulmaz, O. (2011). Ekonomi - Çevre İlişkisi Ve Sürdürülebilir Kalkınma: Ampirik Bir Değerlendirme. Yayınlanmamış Doktora Tezi. Hacettepe Üniversitesi Sosyal Bilimler Enstitüsü: Ankara.
  • Westerlund, J., ve Edgerton, D. L. (2007). A panel bootstrap cointegration test. Economics letters, 97(3):185-190.
  • Yandle, B., Vijayaraghavan, M. ve Bhattarai, M. (2002). Environmental Kuznets Curves: A Review of Findings, Methods, and Policy Implications. PERC Research Study, 2(1):1-24.
  • Zaim, O. ve Taskin, F. (2000). A Kuznets Curve in Environmental Efficiency: An Application on OECD Countries. Environmental and Resource Economics, 17, 21– 36.
  • Zanin, L. ve Marra, G. (2012). Assessing The Functional Relationship Between CO2 Emissions and Economic Development Using An Additive Mixed Model Approach. Economic Modelling, 29, 1328-1337.

Çevresel Kuznets Eğrisinin Panel Veri Yöntemleri ile Güncel Geçerliliği

Year 2022, , 981 - 991, 16.10.2022

Halime Arslan Gürdal , Hüseyin Gürbüz

https://doi.org/10.37880/cumuiibf.1139068

Abstract

Çevresel sorunların küresel ölçekte gündeme gelmesiyle birlikte çevresel sorunların, ekonomik kalkınmadan ve toplumsal faktörlerden bağımsız olarak ele alınamayacağı, bu faktörlerin birbirleriyle ilişkilerinin boyutlarının ve yönünün bir bütün olarak incelenmesi gerekliliği ortaya çıkmıştır. Bu doğrultuda çevre kalitesi ve ekonomik büyüme arasındaki ilişkinin varlığı ve biçimine ilişkin Çevresel Kuznets Eğrisi (ÇKE) hipotezi ortaya konulmuştur. Bu hipotez temelde Çevresel bozulma ile ekonomik büyüme arasında bir ilişkinin olduğunu ve ekonomik büyümenin ilk evresinde çevresel bozulmalar gözlemlenirken, ekonomik büyümenin belirli bir noktaya ulaşmasından sonra çevresel bozulmanın giderek azaldığını ileri sürmektedir.
G7 ülkeleri (Almanya, Amerika Birleşik Devletleri, İngiltere, İtalya, Fransa, Japonya ve Kanada) için Çevresel Kuznets Eğrisi hipotezinin geçerli olup olmadığı doğrusal panel veri yöntemleri ile araştırılması bu çalışmanın amacını oluşturmaktadır. 1981-2018 dönemini kapsayan, kişi başı GSYH, kişi başı CO2 emisyonu ve nüfus artış hızı değişkenleri veri seti olarak ele alınmıştır. İlk olarak, çalışmada kullanılan değişkenlere ait serilerin yatay kesit bağımlılıkları incelenmiş ve durağanlıkları panel birim kök testleri ile analiz edilmiştir. Panelde değişkenler arasında uzun dönemli ilişkinin olup olmadığını test etmek için panel eş bütünleşme testleri uygulanmış ve uzun dönem katsayıların tahmini yapılarak ÇKE geçerliliği sınanmıştır. Yapılan analizler sonucunda G7 ülkelerinde Çevresel Kuznets eğrisinin geçerli olduğu belirlenmiştir. Buna göre kişi başına GSYH, 34453,59$ değerine ulaştığında çevresel bozulmada azalış yönünde eğilimin olacağı saptanmıştır.

Keywords

Çevresel Kuznets Eğrisi Doğrusal Panel Veri Modelleri G7 Ülkeleri.

References

  • Akbostancı, E., Türüt-Aşık, S. ve Tunç, G.İ. (2009). The Relationship Between Income and Environment in Turkey: Is There An Environmental Kuznets Curve?. Energy Policy, 37(3), 861-867.
  • Antweiler, W., Copeland, B. R. ve Taylor M. S. (2001). Is Free Trade Good for the Environment?. American Economic Review, 91(4): 877-908.
  • Başar, S. ve Temurlenk, M.S. (2007). Çevreye Uyarlanmış Kuznets Eğrisi: Türkiye Üzerine Bir Uygulama”, Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 21(1):1-12
  • Breusch, T. S. ve Pagan, A. R. (1980). The Lagrange Multiplier Test and İts Applications to Model Specification in Econometrics. The Review of Economic Studies, 47(1):239- 253.
  • Cole, M.A. (2004). Trade, the pollution haven hypothesis and environmental Kuznets curve: examining the linkages. Ecological Economics, 48(1):71–81.
  • Dijkgraaf, E. ve Vollebergh, H.R.J. (2001). A Note on Testing for Environmental Kuznets Curves, OCFEB Research Memorandum 0103. Environmental Policy, Economic Reform and Endogenous Technology Working Paper Series.
  • Dinda, S. (2004). Environmental Kuznets Curve Hypothesis: A Survey. Ecological Economics, 49(4): 431-455.
  • Dollar, D. ve Kraay, A. (2004). Trade, Growth, and Poverty. Econ papers, 114(493):22-49.
  • Fodha, M. ve Zaghdoud, O. (2010). Economic Growth and Pollutant Emissions in Tunisia: An Empirical Analysis of The Environmental Kuznets Curve. Energy Policy, 38(2):1150-1156.
  • Gengenbach, C., Urbain, J. P. ve Westerlund, J. (2016). Error correction testing in panels with common stochastic trends. Journal of Applied Econometrics, 31(6): 982-1004.
  • Grossman, G. (1993). Pollution and growth: what do we know?, Centre for Economic Policy Research CEPR DP-848. London.
  • Grossman, G. ve Kreuger, A. (1991). Environmental Impacts of a North American Free Trade Agreement. NBER Working Paper, No. 3914, Erişim Tarihi: 24.05.2013.
  • Grossman, G. ve Kreuger, A. (1995). Economic Growth and the Environment. The Quarterly of Journal Economics, 110(2):353-377.
  • Gürlük, S. (2009). Economic growth, industrial pollution and the human development in the Mediterranean Region. Ecological Economics, 68, 2327-2335. http://www.nber.org/papers/w3914.pdf.
  • Jena, P.R. ve Grote, U. (2008) "Growth–trade–environment nexus in India", Economics Bulletin, Access Econ, 17(11):1-11.
  • Kaufmann, K. R., Davidsdottir, B., Garnham, S. ve Pauly,P. (1998). The determinants of atmospheric SO2 concentrations: Reconsidering the environmental Kuznets Curve. Ecological Economics, 25, 209-220.
  • Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45(1):2-28.
  • Luzzati, T. ve Orsini, M. (2010b). The Robustness of the Environmental Kuznets. Advances in Energy Studies 2010. Barcelona.
  • Luzzati, T., ve Orsini, M. (2010a,). A robustness exercise on the EKC for CO2 emissions. Advances in Energy Studies 2010. Erişim: 26, 2, 2011, http://www.societalmetabolism.org/ aes2010/ Proceeds/ dıgıtal procıdıngs_files/ presentatıons/ LuzzatiOrsiniAES2010.pdf.
  • Orubu, C.O. ve Omotor, D. G. (2011). Environmental Quality And Economic Growth: Searching For Environmental Kuznets Curves For Air And Water Pollutants İn Africa. Energy Policy, 39(7):4178-4188.
  • Panayotou, T. (1993). Emprical test and policy analysis of environmental degradation at different stages of economic development. Working Paper, P238. Technology and Employment Programme, International Labour Office. Geneva.
  • Panayotou, T. (1997). Demystifying the environmental Kuznets curve: Turning a black box into a policy tool. Environment and Development Economics, 2, 465-484.
  • Pesaran, M. H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels, http://ftp.iza.org/dp1240.pdf (21.10.2017)
  • Pesaran, M. H. (2006). Estimation and Inference in Large Heterogeneous Panels with A Multifactor Error Structure. Econometrica, 74(4):967-1012.
  • Pesaran, M. H. (2007). A Simple Panel Unit Root Test in The Presence of Cross‐Section Dependence. Journal of Applied Econometrics, 22(2): 265-312.
  • Selden, T. M. ve Song, D. (1994). Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?. Journal of Environmental Economics and Management, 27(2):147-162.
  • Shafik, N. ve Bandyopadhyay, S. (1992). Economic Growth and Environmental Quality: Time Series and Cross-Country Evidence. Background Paper for the World Development Report. Washington, DC: World Bank.
  • Solakoğlu, E. (2007). The effect of the property rights on the relationship between economic growth and pollution for the transition economies. Eastern European Economics, 45(1): 77-94.
  • Stern, David I. (2004). Environmental Kuznets Curve. Encyclopedia of Energy, 2, 517-525.
  • Stern, David I. ve Common, M.S. (2001). Is There an Environmental Kuznets Curve for Sulfur?. Journal of Environmental Economics and Environmental Management, 41, 162-178.
  • Swamy, P. A. V. B. (2012). Statistical inference in random coefficient regression models (Vol. 55). Springer Science & Business Media.
  • Şahbaz, A. ve Tanyeri, M. (2018). Küçük ve orta büyüklükteki işletmelerde inovasyona yönelik tutumlar ve inovasyon engelleri: Çanakkale ilinde KOBİ’ler üzerine bir araştırma. ÇOMÜ Uluslararası Sosyal Bilimler Dergisi, 3(2):233-263. https://dergipark.org.tr/download/articlefile/564694
  • Torras, M., ve Boyce, J.K. (1998). Income inequality and pollution: a reassessment of the Environmental Kuznets Curve. Ecological Economics, 25, 47-60.
  • Tutulmaz, O. (2011). Ekonomi - Çevre İlişkisi Ve Sürdürülebilir Kalkınma: Ampirik Bir Değerlendirme. Yayınlanmamış Doktora Tezi. Hacettepe Üniversitesi Sosyal Bilimler Enstitüsü: Ankara.
  • Westerlund, J., ve Edgerton, D. L. (2007). A panel bootstrap cointegration test. Economics letters, 97(3):185-190.
  • Yandle, B., Vijayaraghavan, M. ve Bhattarai, M. (2002). Environmental Kuznets Curves: A Review of Findings, Methods, and Policy Implications. PERC Research Study, 2(1):1-24.
  • Zaim, O. ve Taskin, F. (2000). A Kuznets Curve in Environmental Efficiency: An Application on OECD Countries. Environmental and Resource Economics, 17, 21– 36.
  • Zanin, L. ve Marra, G. (2012). Assessing The Functional Relationship Between CO2 Emissions and Economic Development Using An Additive Mixed Model Approach. Economic Modelling, 29, 1328-1337.
There are 38 citations in total.

Details

Primary Language Turkish
Journal Section Makaleler
Authors

Halime Arslan Gürdal 0000-0003-0166-643X

Hüseyin Gürbüz 0000-0002-1085-9164

Publication Date October 16, 2022
Submission Date July 1, 2022
Published in Issue Year 2022

Cite

APA Arslan Gürdal, H., & Gürbüz, H. (2022). Çevresel Kuznets Eğrisinin Panel Veri Yöntemleri ile Güncel Geçerliliği. Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 23(4), 981-991. https://doi.org/10.37880/cumuiibf.1139068

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