Re-visiting environmental Kuznets curve: role of scale, composite, and technology factors in OECD countries
2019
Sohag, Kazi | Kalugina, Olga | Samargandi, Nahla
This study assesses environmental Kuznets curve (EKC) hypothesis corroborating the role of scale, composite, and technology effects in OECD countries. To this end, we analyze the panel time series data from 1980 to 2017 using cross-sectional-autoregressive distributed lags (CS-ARDL). We document that economic growth and carbon emissions follow a U-shaped relationship, contrary to the EKC hypothesis, which our analysis attributes to the substantial contributions of the industrial, manufacturing, and service sectors to GDP. Technological progress has a somewhat marginal impact in reducing carbon emissions through energy efficiency but is unable to validate the existence of EKC hypothesis.
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