Examining the Energy-Environmental Kuznets Curve in OECD Countries Considering their Population

This research aims to examine the validity of the Environmental Kuznets Curve (EKC) hypothesis in 37 Organization for Economic Co-operation and Development (OECD) countries over the period from 1960 to 2019. Panel Quantile Regressions (QR) show that for the lower quartile, economic growth does not impact emissions; for the central quartile a U-shaped curve emerges; while for the upper quartile, an N-shaped curve is found. In addition, cointegrating regressions highlight that economic growth, fossil fuel consumption, and population exert a detrimental effect on the environment, while renewable energy consumption reduces carbon dioxide (CO2) emissions. These results are confirmed by panel causality tests since a feedback mechanism is found between CO2 emissions and the remaining series. Furthermore, single-country estimates provide evidence of great variability in the sample.

Automated summary

This research examines the validity of the Environmental Kuznets Curve (EKC) hypothesis in 37 OECD countries from 1960 to 2019. Panel quantile regressions show different curves (U-shaped, N-shaped) for different quartiles, indicating the impact of economic growth on emissions varies. Cointegrating regressions reveal a detrimental effect on the environment from economic growth, fossil fuel consumption, and population, while renewable energy consumption reduces CO2 emissions. Panel causality tests confirm a feedback mechanism between CO2 emissions and other variables, and single-country estimates show significant variability in the sample.