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The effect of transport infrastructure (road, rail, and air) investments on economic growth and environmental pollution and testing the validity of EKC in China, India, Japan, and Russia

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Abstract

A key factor in social development and sustainable urban expansion is the establishment of sustainable and affordable transport systems. This study aims to investigate the impact of transport infrastructure investment on environmental degradation and economic growth and to test the validity of the EKC hypothesis in China, India, Russia, and Japan over the period 1995–2020. The results show that GDP has a significant positive effect, and GDP2 and GDP3 have significant adverse effects on environmental degradation, respectively. These results confirm the validity of the inverted U-shaped EKC hypothesis in selected emerging Asian economies. Rail infrastructure investment has significant adverse effects, while road infrastructure investment and aviation infrastructure investment have significant positive effects on environmental degradation. Likewise, the impact of investment in transport infrastructure system (roads, rail, and aviation) on economic growth is positive and statistically significant. Country-level estimates confirm the validity of the inverted U-shaped EKC hypothesis in China, India, and Russia, while the N-shaped EKC is only valid in Japan. Investments in rail infrastructure based on modern rail systems that run on electricity are believed to be less polluting in the transport mix, help create sustainable and safe transport systems, and reduce emissions at the urban and intercity levels in emerging Asian countries. In addition, the growing impact of free trade on environmental pollution should be strengthened to harmonize the strict enforcement of environmental conditions dominated by trade agreements.

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Data availability

The data that support the findings of this study are openly available in the World Development Indicator page published by World Bank (2020), at https://databank.worldbank.org/source/world-development-indicators. Infrastructure investment data are available online in the OECD page published by OECD (2020), retrieved from https://data.oecd.org/transport/infrastructure-investment.htm.

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Authors and Affiliations

  1. Faculty of Management and Economics, Kunming University of Science and Technology, Kunming, Yunnan, China

    Yuanhao Liu

  2. Northeast Agriculture University (NEAU), Harbin, China

    Arshad Ali

  3. Business School, Zhengzhou University of Industrial Technology, Henan, 451199, China

    Yuanchun Chen

  4. Department of Industrial Economics, University of Chinese Academy of Social Sciences, Beijing, China

    Xiao She

Authors
  1. Yuanhao Liu
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  2. Arshad Ali
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  3. Yuanchun Chen
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  4. Xiao She
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Contributions

A.A. (Ali), Y.l. (Liu), and Y.C (Chen) contributed to the conceptualization of the study, analysis, design, and conclusions; reviewed the manuscript; and approved the final submission. S.X. (Xiao) conceptualized the study, review, software data curation, editing, and literature search.

Corresponding author

Correspondence to Xiao She.

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Liu, Y., Ali, A., Chen, Y. et al. The effect of transport infrastructure (road, rail, and air) investments on economic growth and environmental pollution and testing the validity of EKC in China, India, Japan, and Russia. Environ Sci Pollut Res 30, 32585–32599 (2023). https://doi.org/10.1007/s11356-022-24448-w

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