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Environmental Kuznets Curve: A New Functional Form in the Case of Low-Income Countries

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Climate Change and Environmental Sustainability

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Abstract

Since the late 1980s climate change as an incessant controversial topic has occupied the agenda of the top economies, sparking a heated debate among researchers, policy-makers, and international organizations. IMF argued that climate change imposes a huge threat on the long-run development and growth of world nations. While trying to capture the real drivers behind it, the United Nations (UN) reveals that CO2 emissions that contribute to more than 66% of the greenhouse gases can be claimed responsible. Hence, uncovering the relationship between CO2 emissions and countries’ economic growth is vital. To assess the relationship between CO2 emissions and economic growth, the paper will use the Environmental Kuznets’ Hypothesis (EKC). The previous empirical findings on EKC hypothesis found a bidirectional relationship between CO2 emissions and growth. Thus, a new functional form is introduced to capture the empirical literature as well as test the normal functional form. Using ARDLand stability testing as econometric techniques. Employing time-series data approaches for 60 years from 1960 to 2018 for the low-income countries group. The results are robust and support the presence of both EKC and its extended version in the long-run in some low-income countries.

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Correspondence to Yara Elsehaimy .

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Elsehaimy, Y., Yousri, D.M. (2022). Environmental Kuznets Curve: A New Functional Form in the Case of Low-Income Countries. In: He, BJ., Prasad, D., Pignatta, G., Jupesta, J. (eds) Climate Change and Environmental Sustainability. Advances in Science, Technology & Innovation. Springer, Cham. https://doi.org/10.1007/978-3-031-12015-2_16

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