Renewable Energy, International Trade, and Some Pollutant Emissions: Testing he Environmental Kuznets Curve (Ekc) Hypothesis
Description
The reliance on industry and technology for economic progress has been intensive, and so does it on energy uses as human civilization advances. Global warming and climate crisis have been pressing factors to reduce the by-product of economic growth – pollutions. Renewable energy is the focus. This study investigates the dynamic causal relationships between CO2, NOx, SO2, renewable energy consumption, international trade, and economic development. The study is for 26 East, Southeast, and South Asian countries, which is an interesting region for the EKC analysis as it includes some developed, middle- and low- income countries. Studies are conducted before in the region either on the individual country basis or for few countries, not altogether. Several techniques of panel data analysis are used for the empirical estimation of the hypothesis and the impacts of other factors. The study finds that the validity of Environmental Kuznets Curve (EKC) hypothesis depends on the nature and externality-type of a pollutant. The hypothesis holds for local pollutant – NOx, and SO2 while there is an N-shaped trajectory for CO2 which is more dispersed. The renewable energy consumption has significant negative association with the pollutants while international trade significantly increasing pollution in the region.
Renewable Energy, International Trade, and Some Pollutant Emissions: Testing he Environmental Kuznets Curve (Ekc) Hypothesis
The reliance on industry and technology for economic progress has been intensive, and so does it on energy uses as human civilization advances. Global warming and climate crisis have been pressing factors to reduce the by-product of economic growth – pollutions. Renewable energy is the focus. This study investigates the dynamic causal relationships between CO2, NOx, SO2, renewable energy consumption, international trade, and economic development. The study is for 26 East, Southeast, and South Asian countries, which is an interesting region for the EKC analysis as it includes some developed, middle- and low- income countries. Studies are conducted before in the region either on the individual country basis or for few countries, not altogether. Several techniques of panel data analysis are used for the empirical estimation of the hypothesis and the impacts of other factors. The study finds that the validity of Environmental Kuznets Curve (EKC) hypothesis depends on the nature and externality-type of a pollutant. The hypothesis holds for local pollutant – NOx, and SO2 while there is an N-shaped trajectory for CO2 which is more dispersed. The renewable energy consumption has significant negative association with the pollutants while international trade significantly increasing pollution in the region.