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From growth to sustainability: investigating N-shaped EKC and the role of energy productivity, technological advancement, and human capital in OECD economies

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Abstract

Environmental degradation rates have been on a concerning upward trajectory in recent decades, directly threatening the well-being of global populations. Responding to this urgent matter, scholars have been driven to explore its nuances, particularly emphasizing lowering energy consumption and carbon emissions amidst the growing demands of growing economies. Achieving the targets outlined in the 2015 Paris Climate Agreement has also become a priority for many countries. Therefore, this study scrutinizes the Environmental Kuznets Curve (EKC) hypothesis, specifically focusing on the role of energy productivity, technological advancement, and human capital in fostering a sustainable environment across 35 OECD economies from 1990 to 2018. Utilizing three robust econometric techniques, Cross-Sectional Autoregressive Distributed Lag (CS-ARDL), Fully Modified Ordinary Least Squares (FMOLS), and Dynamic Ordinary Least Squares (DOLS), we have drawn insightful conclusions from our data. The analysis substantiates an N-shaped EKC hypothesis relationship between GDP and CO2 emissions, pointing towards an initially increasing, then decreasing, and finally an increasing again trend of emissions with GDP. Furthermore, the long-term projections underscore that energy productivity, technological progression, and human capital formation harm the environment. These findings culminate in a call for governments to orchestrate extensive plans and initiatives. This involves promoting green technologies, renewable energy–based ideas, and comprehensive education and awareness programs. These efforts should span all educational levels, highlighting climate change, sustainable practices, and the need for CO2 reduction, empowering societies to contribute to a sustainable future.

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Fig. 1

Source: Constructed by the authors based on (Awan and Azam 2022)

Fig. 2

Source: Constructed by the authors based on Awan and Azam (2022)

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Data availability

The dataset used during the current study is available from the author on request.

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Funding

The funding is supported by “2023 Regular Subjects of Hangzhou Philosophy and Social Science Planning (grant numbers NO.Z23YD032)”.

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Authors and Affiliations

  1. Industry and Information Technology Bureau of Hinggan League, Ulanhot City, 137400, China

    Jianhua Du

  2. School of Insurance and Economics, University of International Business and Economics, Beijing, 100029, China

    Jianhua Du

  3. World Economy Department, Tashkent State University of Economics, 100003, Tashkent, Uzbekistan

    Maaz Ahmad

  4. Department of Economics, Abdul Wali Khan University Mardan, Marden, Khyber Pakhtunkhwa, Pakistan

    Ijaz Uddin

  5. School of Education, Huazhong University of Science and Technology, Wuhan, 430074, China

    Huijie Xu

  6. Social Science Department, Communication University of Zhejiang, Hangzhou, 310018, China

    Xiao Gu

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Contributions

Jianhua Du and Maaz Ahmad: data curation; writing—original draft preparation; methodology; software.

Ijaz Uddin and Huijie Xu: writing—literature review, reviewing and editing.

Xiao Gu: validation, visualization.

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Correspondence to Ijaz Uddin.

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Appendix 1. List of OECD countries

Appendix 1. List of OECD countries

Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan Korea, Rep, Latvia, Lithuania, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovenia, Spain, Sweden, Switzerland, Turkey, UK and USA.

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Du, J., Ahmad, M., Uddin, I. et al. From growth to sustainability: investigating N-shaped EKC and the role of energy productivity, technological advancement, and human capital in OECD economies. Environ Sci Pollut Res 30, 102374–102388 (2023). https://doi.org/10.1007/s11356-023-29514-5

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