Nguyen Thi Tam Hien, Nguyen Thi Phuong Thao, Vu Thi Thuong

Main Article Content

Abstract

This study provides experimental evidence of the relationship between environment and economic growth in the 17 Asian - Pacific countries during the period 2005-2011. Applying various econometric methodologies, including Pool OLS, FEM, REM, FGLS, and GMM, this paper indicates the inverted U-shaped relationship between environmental quality and economic growth. In addition, this research points out the positive connection between energy consumption and environmental degradation.


Keywords


EKC theory, environment, economic growth, panel regression, Asia - Pacific


References


[1] Shafik, N. & Bandyopadhya, S., “Economic Growth and Environmental Quality Time-Series and CrossCountry Evidence”, Policy Research Working Paper, no. 904 (1992), The World Bank.
[2] Holtz-Eakin, D., & Selden, T. M., “Stoking the fires? CO2 emissions and economic growth”, Journal of Public Economics, 57 (1995), 85-101.
[3] Roberts, J. T., & Grimes, P. E., “Carbon intensity and economic development 1962-1991: A brief exploration of the environmental Kuznets curve”, World development, 25 (1997) 2, 191-198.
[4] Galeotti, M., & Lanza, A., “Richer and cleaner? A study on carbon dioxide emissions in developing countries”, Energy Policy, 27 (1999) 10, 565-573.
[5] Liu, X., “Explaining the Relationship between CO2 Emissions and National Income - The Role of Energy Consumption”, Economics Letters, 87 (2005), 325-28.
[6] Zhang, X. P. & Cheng, X. C., “Energy Consumption, Carbon Emissions, and Economic Growth in China”, Ecological Economics, 68 (2009) 10, 2706-12.
[7] Lee, C.C., Chiu, Y. & Sun, C., “Does One Size Fit All? A Reexamination of the Approach”, Review of Agricultural Economics, 31 (2009), 751-78.
[8] Chen, J. & Huang, Y., “The Study of the Relationship between Carbon Dioxide (CO2) Emission and Economic Growth”, Journal of International and Global Economic Studies, 34 (2013), 45-61.
[9] Grossman, G., & Kreuger, A., Environmental Impacts of a North American Free Trade Agreement, The U.S. Mexico Free Trade Agreement, 1993.
[10] Stern, D.I., “The Rise and Fall of the Environmental Kuznets Curve”, World Development, 32 (2004), 1419-39.
[11] Andreoni, J. & Levinson, A., “The simple analytics of the environmental Kuznets curve”, Journal of Public Economics, 80 (2001), 269-286.
[12] Kaufmann, R. K., Davidsdottir, B., Garnham, S., & Pauly, P., “The determinants of atmospheric SO2 concentrations: Reconsidering the environmental Kuznets curve”, Ecological Economics, 25 (1998) 2, 209-220.
[13] Cole, M , Rayner, J & Bates, J. M., “The Environmental Kuznets Curve: An Empirical Analysis”, Environment and Development Economics, 2 (1997), 401-16.
[14] Panayotou, T., “Empirical Tests and Policy Analysis of Environmental Degradation at Different Stages of Economic Development”, Working Paper WP238 Technology and Employment Programme, Geneva: International Labor Office, 1993.
[15] Selden, T.M., & Song, D. (1994). Environmental Quality and Development: Is there a Kuznets Curve for Air Pollution Emissions?. Journal of Environmental Economics and Management, 27, 147-162.
[16] Grossman, G., & Kreuger, A., “Economic Growth and the Environment”, Quarterly Journal of Economics 110 (1995) 2, 353-377.
[17] Acaravci, A., & Ozturk, I., “On the relationship between energy consumption, CO2 emissions and economic growth in Europe”, Energy, 35 (2010), 5412-5420.
[18] Kasperowicz, R., “Economic growth and CO2 emissions: The ECM analysis”, Journal of International Studies, 8 (2015) 3, 91-98.
[19] Pao, H. T. & Tsai C. M., “CO2 Emissions, Energy Consumption and Economic Growth in BRIC Countries”, Energy Policy 38 (2010) 12, Elsevier: 7850-60.
[20] Dinh, D. H., & Lin, S. M., “Dynamic Causal Relationships among CO2 Emissions, Energy Consumption, Economic Growth and FDI in the most Populous Asian Countries”, Advances in Management and Applied Economics, 5 (2015) 1, 69.
[21] Waslekar, S. S., “World environmental Kuznets curve and the global future”, Procedia-Social and Behavioral Sciences, 133 (2014), 310-319.
[22] Martinez-Zarzoso, I., & Maruotti, A., “The impact of urbanization on CO2 emissions: Evidence from developing countries”, Ecological Economics, 70 (2011) 7, 1344-1353.
[23] Poumanyvong, P., & Kaneko, S., “Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis”, Ecological Economics, 70 (2010) 2, 434-444.
[24] Hettige, H., Mani, M., & Wheeler, D., “Industrial pollution in economic development: The environmental Kuznets curve revisited”, Journal of Development Economics, 62 (2000) 2, 445-476.
[25] De Bruyn, S. M., van den Bergh, J. C., & Opschoor, J. B., “Economic growth and emissions: Reconsidering the empirical basis of environmental Kuznets curves”, Ecological Economics, 25 (1998) 2, 161-175.
[26] Richmond, A. K., Kaufmann, R. K., “Is there a turning point in the relationship between income and energy use and/or carbon emissions?”, Ecological Economics, 56 (2006) 2, 176-189.
[27] Agras, J., & Chapman, D., “A dynamic approach to the Environmental Kuznets Curve hypothesis”, Ecological Economics, 28 (1999) 2, 267-277.
[28] Perman, R., & Stern, D. I., “Evidence from panel unit root and cointegration tests that the environmental Kuznets curve does not exist”, Australian Journal of Agricultural and Resource Economics, 47 (2003) 3, 325-347.
[29] Luzzati, T., & Orsini, M., “Investigating the energy-environmental Kuznets curve”, Energy, 34 (2009) 3, 291-300.
[30] Antonakakis, N., Chatziantoniou, I., & Filis, G., “Energy Consumption, CO2 Emissions, and Economic Growth: A Moral Dilemma”, MPRA Paper No. 67422 (2015).
[31] Al-Mulali, U., “Oil Consumption, CO2 Emission and Economic Growth in MENA Countries”, Energy, 36 (2011) 10, 6165-6171.
[32] Arouri, M. E. H., Youssef, A. B., M'henni, H., & Rault, C., “Energy consumption, economic growth and CO2 emissions in the Middle East and North African countries”, Energy Policy, 45 (2012), 342-349.
[33] Papież, M., “CO2 emissions, energy consumption and economic growth in the Visegrad Group countries: A panel data analysis”, 31st International Conference on Mathematical Methods in Economics, 2013.
[34] Chakravarty, D. & Mandal, S.K., “Estimating the relationship between economic growth and environmental quality for the BRICS economies - A dynamic panel data approach”, Proceedings of the Asia-Pacific Conference on Business and Social Sciences 2015, Kuala Lumpur, 2015.
[35] Hoffmann, R., Lee, C. G., Ramasamy, B., & Yeung, M., “FDI and pollution: A granger causality test using panel data”, Journal of International Development, 17 (2005) 3, 311-317.
[36] Merican, Y., “Foreign direct investment and pollution in five Asean nations”, International Journal of Economics & Management, 1 (2007) 2, 245-261.
[37] Uchiyama, K., “Environmental Kuznets Curve Hypothesis and Carbon Dioxide Emissions”, Springer Japan, 2016, (pp. 11-29).

Keywords: EKC theory, environment, economic growth, panel regression, Asia - Pacific.

References

[1] Shafik, N. & Bandyopadhya, S., “Economic Growth and Environmental Quality Time-Series and CrossCountry Evidence”, Policy Research Working Paper, no. 904 (1992), The World Bank.
[2] Holtz-Eakin, D., & Selden, T. M., “Stoking the fires? CO2 emissions and economic growth”, Journal of Public Economics, 57 (1995), 85-101.
[3] Roberts, J. T., & Grimes, P. E., “Carbon intensity and economic development 1962-1991: A brief exploration of the environmental Kuznets curve”, World development, 25 (1997) 2, 191-198.
[4] Galeotti, M., & Lanza, A., “Richer and cleaner? A study on carbon dioxide emissions in developing countries”, Energy Policy, 27 (1999) 10, 565-573.
[5] Liu, X., “Explaining the Relationship between CO2 Emissions and National Income - The Role of Energy Consumption”, Economics Letters, 87 (2005), 325-28.
[6] Zhang, X. P. & Cheng, X. C., “Energy Consumption, Carbon Emissions, and Economic Growth in China”, Ecological Economics, 68 (2009) 10, 2706-12.
[7] Lee, C.C., Chiu, Y. & Sun, C., “Does One Size Fit All? A Reexamination of the Approach”, Review of Agricultural Economics, 31 (2009), 751-78.
[8] Chen, J. & Huang, Y., “The Study of the Relationship between Carbon Dioxide (CO2) Emission and Economic Growth”, Journal of International and Global Economic Studies, 34 (2013), 45-61.
[9] Grossman, G., & Kreuger, A., Environmental Impacts of a North American Free Trade Agreement, The U.S. Mexico Free Trade Agreement, 1993.
[10] Stern, D.I., “The Rise and Fall of the Environmental Kuznets Curve”, World Development, 32 (2004), 1419-39.
[11] Andreoni, J. & Levinson, A., “The simple analytics of the environmental Kuznets curve”, Journal of Public Economics, 80 (2001), 269-286.
[12] Kaufmann, R. K., Davidsdottir, B., Garnham, S., & Pauly, P., “The determinants of atmospheric SO2 concentrations: Reconsidering the environmental Kuznets curve”, Ecological Economics, 25 (1998) 2, 209-220.
[13] Cole, M , Rayner, J & Bates, J. M., “The Environmental Kuznets Curve: An Empirical Analysis”, Environment and Development Economics, 2 (1997), 401-16.
[14] Panayotou, T., “Empirical Tests and Policy Analysis of Environmental Degradation at Different Stages of Economic Development”, Working Paper WP238 Technology and Employment Programme, Geneva: International Labor Office, 1993.
[15] Selden, T.M., & Song, D. (1994). Environmental Quality and Development: Is there a Kuznets Curve for Air Pollution Emissions?. Journal of Environmental Economics and Management, 27, 147-162.
[16] Grossman, G., & Kreuger, A., “Economic Growth and the Environment”, Quarterly Journal of Economics 110 (1995) 2, 353-377.
[17] Acaravci, A., & Ozturk, I., “On the relationship between energy consumption, CO2 emissions and economic growth in Europe”, Energy, 35 (2010), 5412-5420.
[18] Kasperowicz, R., “Economic growth and CO2 emissions: The ECM analysis”, Journal of International Studies, 8 (2015) 3, 91-98.
[19] Pao, H. T. & Tsai C. M., “CO2 Emissions, Energy Consumption and Economic Growth in BRIC Countries”, Energy Policy 38 (2010) 12, Elsevier: 7850-60.
[20] Dinh, D. H., & Lin, S. M., “Dynamic Causal Relationships among CO2 Emissions, Energy Consumption, Economic Growth and FDI in the most Populous Asian Countries”, Advances in Management and Applied Economics, 5 (2015) 1, 69.
[21] Waslekar, S. S., “World environmental Kuznets curve and the global future”, Procedia-Social and Behavioral Sciences, 133 (2014), 310-319.
[22] Martinez-Zarzoso, I., & Maruotti, A., “The impact of urbanization on CO2 emissions: Evidence from developing countries”, Ecological Economics, 70 (2011) 7, 1344-1353.
[23] Poumanyvong, P., & Kaneko, S., “Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis”, Ecological Economics, 70 (2010) 2, 434-444.
[24] Hettige, H., Mani, M., & Wheeler, D., “Industrial pollution in economic development: The environmental Kuznets curve revisited”, Journal of Development Economics, 62 (2000) 2, 445-476.
[25] De Bruyn, S. M., van den Bergh, J. C., & Opschoor, J. B., “Economic growth and emissions: Reconsidering the empirical basis of environmental Kuznets curves”, Ecological Economics, 25 (1998) 2, 161-175.
[26] Richmond, A. K., Kaufmann, R. K., “Is there a turning point in the relationship between income and energy use and/or carbon emissions?”, Ecological Economics, 56 (2006) 2, 176-189.
[27] Agras, J., & Chapman, D., “A dynamic approach to the Environmental Kuznets Curve hypothesis”, Ecological Economics, 28 (1999) 2, 267-277.
[28] Perman, R., & Stern, D. I., “Evidence from panel unit root and cointegration tests that the environmental Kuznets curve does not exist”, Australian Journal of Agricultural and Resource Economics, 47 (2003) 3, 325-347.
[29] Luzzati, T., & Orsini, M., “Investigating the energy-environmental Kuznets curve”, Energy, 34 (2009) 3, 291-300.
[30] Antonakakis, N., Chatziantoniou, I., & Filis, G., “Energy Consumption, CO2 Emissions, and Economic Growth: A Moral Dilemma”, MPRA Paper No. 67422 (2015).
[31] Al-Mulali, U., “Oil Consumption, CO2 Emission and Economic Growth in MENA Countries”, Energy, 36 (2011) 10, 6165-6171.
[32] Arouri, M. E. H., Youssef, A. B., M'henni, H., & Rault, C., “Energy consumption, economic growth and CO2 emissions in the Middle East and North African countries”, Energy Policy, 45 (2012), 342-349.
[33] Papież, M., “CO2 emissions, energy consumption and economic growth in the Visegrad Group countries: A panel data analysis”, 31st International Conference on Mathematical Methods in Economics, 2013.
[34] Chakravarty, D. & Mandal, S.K., “Estimating the relationship between economic growth and environmental quality for the BRICS economies - A dynamic panel data approach”, Proceedings of the Asia-Pacific Conference on Business and Social Sciences 2015, Kuala Lumpur, 2015.
[35] Hoffmann, R., Lee, C. G., Ramasamy, B., & Yeung, M., “FDI and pollution: A granger causality test using panel data”, Journal of International Development, 17 (2005) 3, 311-317.
[36] Merican, Y., “Foreign direct investment and pollution in five Asean nations”, International Journal of Economics & Management, 1 (2007) 2, 245-261.
[37] Uchiyama, K., “Environmental Kuznets Curve Hypothesis and Carbon Dioxide Emissions”, Springer Japan, 2016, (pp. 11-29).