Abstract
Empirical studies on the environmental Kuznets curve (EKC) hypothesis have not reached a consensus on their findings because different environmental indicators are used, among other reasons. So, this study proposes using a composite index encompassing all dimensions of environmental pollution, using the composite environmental quality index (CEQI) which is introduced by Fakher et al. (Environ Sci Pollut Res 28(43): 61096–61114, 2021b). To do so, continuously updated fully modified (CUP-FM) and continuously updated bias-corrected (CUP-BC) techniques are used for the panel of selected Organisation for Economic Co-operation and Development (OECD) countries and Organization in the Petroleum Exporting Countries (OPEC) from 2000 to 2019. The findings show that the EKC hypothesis is confirmed in the inverted N-patterned relationship for the OPEC countries and an inverted U-patterned relationship for the OECD countries. Our findings also declare that consumption of renewable energies (REC) significantly increases environmental quality (EQ) while consumption of non-renewable energies (NREC) adds to environmental degradation (ED). Further, the role of financial development (FD) in our composite index is respectively negative and positive for sampled OPEC and OECD economies. The positive coefficient of combined trade share (CTS) in both groups of studied countries indicates that this variable works to reduce ED. Lastly, the implications of these findings for economic-environmental policies are discussed.
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The datasets used and/or analysed during the current study are available from the corresponding author on reasonable request.
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References
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Hossein Ali Fakher: conceptualisation, data curation, empirical analysis, writing the original manuscript, writing reviewing and editing, methodology. Roula Inglesi-Lotz: writing reviewing and editing, validation. The authors have read and approved the final manuscript.
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Highlights
• The EKC hypothesis is re-investigated using a new composite index for the environment.
• The inverted N shape and U shape are found for selected OPEC and OECD countries.
• REC and NREC have respectively positive and negative impacts on CEQI.
• CTS increases EQ both in selected sampled countries.
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Fakher, H.A., Inglesi-Lotz, R. Revisiting environmental Kuznets curve: an investigation of renewable and non-renewable energy consumption role. Environ Sci Pollut Res 29, 87583–87601 (2022). https://doi.org/10.1007/s11356-022-21776-9
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DOI: https://doi.org/10.1007/s11356-022-21776-9