Environmental Kuznets Curve for Carbon Intensity : a Global Survey

University essay from IHH, Nationalekonomi; IHH, Economics, Finance and Statistics

Abstract: The Environmental Kuznets Curve is an inverted U-shaped relationship which demonstrates how environmental degradation increases as countries begin to develop and lowers as they become wealthier. The classical EKC measures the effects of GDP per capita (a country’s wealth) on pollu-tion. This paper is a study of the connection of a number of factors- GDP per capita, fossil fuels, al-ternative and nuclear energy, rural population and life expectancy at birth to the Environmental Kuznets Curve. Two econometric approaches are applied in order to test whether the variables have a more pronounced linear or quadratic form. Four income groups of countries are investigated in order to check if the state of development plays a crucial role in environmental deterioration. The results of the study point out that EKC does not apply for the chosen variables. From the regression for GDP, however, it can be concluded that EKC forms in 1990s.

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