Analyzing the Threshold Effect in the Relationship Between Income and Environmental Degradation in the Middle East and North Africa Region

This study empirically explores the legitimacy of the Environmental Kuznets Curve (EKC) hypothesis for four economies from the Middle East and North Africa (MENA) region, considering the environmental quality measured by carbon dioxide emissions and national income proxied by real GDP per capita from 1980 to 2018, and employed the ARDL approach. The cointegration results reveal that there persist long-run associations among the series of interest and for each country. Results of ARDL show the validity of the EKC hypothesis for Turkey and unconventionality for the UAE in the long run, while reject its validity for Algeria, Egypt, and the UAE in the short run, and for Turkiya and UAE in the long run, while it is not valid for Algeria. Overall, the empirical estimates on the validity of the EKC hypothesis are found mixed. These empirical findings suggest to design efficient, prudent, and economically feasible environmental protection policies, whereas to start public awareness projects to improve environmental quality in order to achieve sustainable development in the region.

Automated summary

This study examines the validity of the Environmental Kuznets Curve (EKC) hypothesis in four economies from the Middle East and North Africa (MENA) region. The findings suggest mixed results, with EKC hypothesis being valid in the long run for Turkey, but not valid for Algeria, Egypt, and the UAE in both short and long runs. It is also found to be invalid for Algeria in the long run. The study recommends designing efficient and economically feasible environmental protection policies and initiating public awareness projects to improve environmental quality for sustainable development in the region.