In this paper, we investigate the validity of the environmental Kuznets curve (henceforth, EKC) hypothesis for 8 OECD countries. To this aim, we decompose the per capita GDP series into its increases and decreases and consider only increases by excluding decreases from the model. Therefore, this method may enable us to test the EKC hypothesis more accurately, in accordance with the original theory. Following decomposition, we apply the fixed-effect regression model with Driscoll-Kraay standard errors, and the common correlated effects mean group (CCEMG) estimator. Empirical findings indicate that while the undecomposed model with undecomposed per capita GDP series supports the EKC hypothesis for 4 out of 8 countries, the decomposed model with decomposed per capita GDP series does not do so for any country. Hence, these mixed results reveal a need to employ different alternative techniques, such as the data transformation/decomposition applied in this study, for testing the EKC hypothesis.

The increases and decreases of the environment Kuznets curve (EKC) for 8 OECD countries.

Carbon neutrality target for G7 economies: Examining the role of environmental policy, green innovation and composite risk index.

The current study aims to explore the role of environmental taxes and regulations for the renewable energy consumption, focusing on reporting policy suggestions to overcome climate change issues an...

Investigating the role of environmental taxes and regulations for renewable energy consumption: evidence from developed economies

Exploring the heterogenous impacts of environmental taxes on environmental footprints: An empirical assessment from developed economies

This study reinvestigates the EKC hypothesis for US states with a new methodology that differs from all previous empirical studies using traditional EKC models. To this aim, this methodology, for the first time, unifies two seemingly different but strongly interrelated hypotheses (models), namely the Armey curve (AC) and traditional EKC models, into one single composite model. The rationale for creating this composite model is twofold. First, the functional propositions of these two hypotheses are depicted with inverted U-shaped curves. Second, they also have economically interrelated-causal relationships. This means that rising government spending (through the AC hypothesis) increases real GDP per capita (RGDPPC) and, consequently, increases in RGDPPC (through the EKC hypothesis) increase CO2 emissions. The composite model created may also allow US state policymakers to determine a single maximum spending level that will maximize or minimize CO2 emissions. Empirical findings indicate that the composite model is capable of testing the EKC hypothesis for 7 US states. Additionally, for 7 US states, maximum spending level was calculated to be around 15% of their RGDPPCs. Hence, with this calculated spending level, policymakers of these states may be able to determine-adjust their golden spending levels so as not to cause environmental degradation and declines in GDP.

Reinvestigating the Environmental Kuznets Curve (EKC) hypothesis by a composite model constructed on the Armey curve hypothesis with government spending for the US States

Attaining sustainable development and cleaner production is a major challenge both for developed and developing economies; income, institutional regulations, institutional quality and international trade are the key determinants of environmental externalities The current work attempts to study the role of environmental taxes and regulations on renewable energy generation for developed economies For that, the authors have used the annual dataset for the period 1994 to 2018 More specifically, the study investigates the impacts of environmental taxes, environment-related technologies and the environmental policy stringency index on renewable electricity generation in 29 developed countries Given the short available data of these countries, the authors have developed panel cointegration and panel regressions models (fully modified ordinary least square (FMOLS), quantile regressions) The heterogeneous panel empirics stated that environmental regulations and income level support renewable electricity generation The conclusions further mention that bureaucratic qualities such as decision making and trade openness tend to reduce renewable energy generation The empirical findings allowed us to draw new narrative and implications Overall, the conclusions argue that innovative regulations and policies can be useful for attaining specific sustainable development goals (eg, SDG-7: cleaner and cheap energy)

Do Environment-Related Policy Instruments and Technologies Facilitate Renewable Energy Generation? Exploring the Contextual Evidence from Developed Economies

Syed Rahim

Papers

Do Environment-Related Policy Instruments and Technologies Facilitate Renewable Energy Generation? Exploring the Contextual Evidence from Developed Economies