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Testing environment Kuznets curve (EKC) hypothesis in different regions

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Abstract

This study examines the association between air pollution and economic growth based on the idea of environment Kuznets curve (EKC) hypothesis which suggests an inverted U-shaped link between air pollution and economic growth in six different regions including Latin America and the Caribbean, East Asia and the Pacific, Europe and Central Asia, South Asia, the Middle East and North Africa, and Sub-Saharan Africa over the period 2000 to 2018. This regional classification is done to investigate the regional differences of the EKC relationship for carbon emissions. Models based on panel data econometric models are employed to obtain empirical results. Random effect and fixed effect models are used in the present study. A multivariate framework is used in which carbon dioxide emission, per capita gross domestic product, trade openness, foreign direct investment, primary school enrollment, financial development indicator, and institutional quality that is measured by six indicators are included. The result is that the EKC hypothesis is supported in all the abovementioned regions except in the Sub-Saharan Africa region. Thus, the hypothesis that different regions have dissimilar EKC relationships is supported through the results of this research study.

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Data Availability

Data are available at the International Energy Agency (IEA), International Monetary Fund, World Governance Indicator (WGI), and World Development Indicator (WDI).

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Author information

Authors and Affiliations

  1. School of Economics, Quaid-i-Azam University, Islamabad, Pakistan

    Fatima Bibi

  2. Ghulam Ishaq Khan Memorial Chair, Kashmir Institute of Economics, The University of Azad Jammu & Kashmir, Muzaffarabad, Pakistan

    Muhammad Jamil

Authors
  1. Fatima Bibi
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  2. Muhammad Jamil
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Contributions

Both authors contributed to the study conception and design. Material preparation, data collection, and analysis were performed by Fatima Bibi and Muhammad Jamil. The first draft of the manuscript was written by Fatima Bibi. Both of us read and approved the final manuscript.

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Correspondence to Fatima Bibi.

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Appendix

Appendix

Table 4 List of countries in six regions of the world
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Bibi, F., Jamil, M. Testing environment Kuznets curve (EKC) hypothesis in different regions. Environ Sci Pollut Res 28, 13581–13594 (2021). https://doi.org/10.1007/s11356-020-11516-2

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  • DOI: https://doi.org/10.1007/s11356-020-11516-2

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