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Examining the Energy-Environmental Kuznets Curve in OECD Countries Considering their Population
Hêriş Golpîra1, Heibatolah Sadeghi2, Cosimo Magazzino3
1Department of Industrial Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran. HerishGolpira@gmail.com.
Abstract:
This research aims to examine the validity of the Environmental Kuznets Curve (EKC) hypothesis in 37 Organization for Economic Co-operation and Development (OECD) countries over the period from 1960 to 2019. Panel Quantile Regressions (QR) show that for the lower quartile, economic growth does not impact emissions; for the central quartile a U-shaped curve emerges; while for the upper quartile, an N-shaped curve is found. In addition, cointegrating regressions highlight that economic growth, fossil fuel consumption, and population exert a detrimental effect on the environment, while renewable energy consumption reduces carbon dioxide (CO2) emissions. These results are confirmed by panel causality tests since a feedback mechanism is found between CO2 emissions and the remaining series. Furthermore, single-country estimates provide evidence of great variability in the sample.
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