4.5 Article

Investigating the environmental Kuznets Curve and the role of green energy: Emerging and developed markets

Journal

INTERNATIONAL JOURNAL OF GREEN ENERGY
Volume 15, Issue 1, Pages 37-44

Publisher

TAYLOR & FRANCIS INC
DOI: 10.1080/15435075.2017.1413375

Keywords

EKC hypothesis; pooled mean group; renewable energy; developed markets; emerging markets

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In this study, the validity of the Environmental Kuznets Curve (EKC) hypothesis and the effect of green energy sources to decrease CO2 emissions are examined for emerging and developed markets from 1990 to 2011 using a pooled mean group (PMG) estimator. Empirical findings of this study suggest that the EKC hypothesis is not confirmed by emerging markets; meanwhile, it is strongly supported by developed markets. The long-run elasticity results of per capita data may also imply a divergence between emerging markets and developed markets regarding CO2 emissions. On the other hand, the findings of this study indicate that renewable energy sources will play an important role in reducing CO2 emissions for both panel groups in the long run.

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