Abstract
This research aims to explore the existence of a new concept known as “environmental Phillips curve” (EPC) developed by the authors. Taking annual data of 30 countries for 26 years, a panel data estimation method is applied. The invented function shows an inverse relationship between pollution and unemployment. In most of the cases, the industrialized countries show that the relationship is valid. The notion is proved effective in every format of investigation. It seems that curbing pollution in the world is only possible at the cost of human employment. Therefore, if countries want to curb environmental pollution without affecting the generation of employment and reducing poverty, they should contemplate both innovation and enforcement alternative technologies that would be less polluting but employment friendly. Moreover, this research also suggests that if a country can treat pollution efficiently, it can increase the national income without a deteriorating unemployment level.
Similar content being viewed by others
References
Aldy JE (2005) An environmental Kuznets curve analysis of U.S. state-level carbon dioxide emissions. J Env Dev 14:48–72
Awad A (2019) Does economic integration damage or benefit the environment? Africa’s Experience Energy Pol 132:991–999
Baltagi BH, Feng Q, Kao C (2012) A Lagrange multiplier test for cross-sectional dependence in a fixed effects panel data model. J Econom 170(1):164–177
Beck N, Katz JN (1995) What to do (and not to do) with time series cross section data? Amer Pol Sc Rev 89:634–647
Breitung J (2000) The local power of some unit root tests for panel data. Adv Econ 15:161–177
Breusch T, Pagan A (1980) The lagrange multiplier Ttest and its application to model specification in econometrics. Rev of Econ Stud 47:239–254
Buzkurt C, Akan Y (2014) Economic growth, CO2 emissions and energy consumption: the Turkey case. Int J En Econ and Pol 4(3):484–495
Chebbi HE, Boujelbeane Y (2008) CO2 emissions, energy consumptions and economic growth in Tunisia. Congress of the European Association of Agricultural Economists. August 26-29, European Association of Agricultural Economists
Dinda S, Coondoo D (2006) Income and emission: a panel data-based co-integration analysis. Ecol Econ 57:167–181
Driscoll D, Kraay A (2001) Trade, growth, and poverty. The World Bank Policy Research Working Paper. World Bank, Washington No. 2615
Farhani S, Rejeb JB (2012) Energy consumption, economic growth and CO2 emissions: evidence from panel data from MENA region. Int J Energy Econ Pol 2(2):71–81
Grossman G, Krueger A (1995) Environment and the economic growth. Quart J Econ 110:353–377
Hadri K (2000) Testing for stationarity in heterogeneous panel data. J Econom 3:148–161
Hamilton C, Turton H (2002) Determinant of emissions growth in OECD countries. J Energy Pol:63–71
Hausman JA (1978) Specification tests in econometrics. Econometrica 46:1251–1271
Hossain S (2012) An econometric analysis of energy consumption, CO2 emissions, economic growth, Foreign Trade and Urbanization of Japan. Low Carbon Econ 3:92–105
Im KS, Pesaran MH, Shin Y (2003) Testing for unit roots in heterogeneous panels. J Econ 115:53–74
Islam F, Shahbaz M (2012) Is there an environmental Kuznets curve for Bangladesh? Utah Vally University, Comsats Institute of Information (Working Paper)
Islam F, Shahbaz M, Ahmed MSU (2013) Is there an environmental Kuznets curve for Bangladesh? Evidence from ARDL bounds testing approach Bangladesh Dev Stud XXXVI, 4
Kashem MA, Rahman MM (2019) CO2 emissions and development indicators: a causality analysis for Bangladesh. Env Proc 6(2):433–455
Lean HH, Smyth R (2009) CO2 emissions, electricity consumption and output in ASEAN, Department of Economics, Monash University, Australia, Development Research Unit discussion paper, 09–13
Levin A, Lin C, Chu CJ (2002) Unit root test in panel data: asymptotic and finite sample properties. J Econ 108:1–24
Mercan M, Karakaya E (2015) Energy consumption economic growth carbon emissions: dynamic panel cointegration for selected OECD countries. Procedia Econ Fin 23:587–592
Mohapatra G, Giri AG (2015) Energy consumption, economic growth and CO2 emissions: empirical evidence from India. Emp Econ Quant Econ Letters 4(1):17–32
Okun AM (1962) Real GDP Growth and the Unemployment Rate . Cowles Foundation, Yale University
Ozturk I, Uddin GS (2002) Causality among carbon emissions, energy consumption and growth in India, Occasional paper, Faculty of Economics, Mersin University, Turkey
Pesaran MH (2004) General Diagnostic tests for cross section dependence in panels. CESifo Working Paper Series No. 1229; IZA Discussion Paper No. 1240
Pesaran MH (2007) A simple panel unit root test in the presence of cross-sectional dependence. J App Econ 27:265–312
Phillips AW (1958) The relation between unemployment and the rate of change of money wage rates in the United Kingdom. Economica. 283:1861–1957
Rahman MM (2017) Do population density, economic growth, energy use and exports adversely affect environmental quality in Asian populous countries? Renew Sust Energ Rev 77:506–514
Rahman MM (2020) Environmental degradation: the role of electricity consumption, economic growth and globalization. J Environ Manag 253
Rahman MM, Kashem MA (2017) Carbon emissions, energy consumption and industrial growth in Bangladesh: empirical evidence from ARDL co-integration and Granger causality analysis. En Policy 110:600–608
Rahman MM, Saidi K, Mbarek MB (2017) The effects of population growth, environmental quality and trade openness on economic growth: a panel data application. J Econ Stud 44(3)
Reed RW, Ye H (2011) Which panel data estimator should I use? J Appl Econ 43(8)
Saidi K, Hammami S (2015) The impact of CO2 emissions and economic growth in energy consumption in 58 countries. Ener Report 1:62–70
Shahbaz M, Kumar M, Shah SH, Sado, JR (2016) Time-varying analysis of CO2 emissions, energy consumptions and economic growth nexus: statistical analysis of NEXT-11 countries. Munich Personal RePEc Archive
Tiwari AK (2012) Energy consumption, CO2 emissions and economic growth: a revisit of the evidence from India. Applied econometrics and international development, 11-2
World Bank (2019) World development indicators. World Bank, Washington
Zaman RZ (2012) CO2 emissions, trade openness and GDP per capita: Bangladesh perspective. MPRA
Author information
Authors and Affiliations
Contributions
M.A. Kashem: Study plan; literature review; data collection; writing main sections of the paper; econometric estimation, and data and result analysis.
M.M. Rahman: Conceptual and methodological development; variable selection; result analysis, polishing and editing, and improving the quality of the manuscript; and undertaking the responsibility of corresponding author.
Corresponding author
Additional information
Responsible Editor: Nicholas Apergis
Publisher’s note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Appendices
Appendix 1
Appendix 2. Bi-variate graphs (unemployment vs CO2 emissions)
Appendix 3. All estimated models
Rights and permissions
About this article
Cite this article
Kashem, M.A., Rahman, M.M. Environmental Phillips curve: OECD and Asian NICs perspective. Environ Sci Pollut Res 27, 31153–31170 (2020). https://doi.org/10.1007/s11356-020-08620-8
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-020-08620-8