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Advisor(s)
Abstract(s)
The environmental Kuznets curve (EKC) hypothesis posits an inverted U-shaped relationship between economic growth and environmental degradation. However, there is no consensus
regarding the EKC hypothesis among countries and regions of different income groups. This study
revisits the EKC hypothesis by employing cross-correlation analysis to explore the income–CO2
emissions relationship across 158 countries and 44 regions from 1990 to 2020. The empirical method
utilizes a dynamic cross-correlation coefficient (CCC) approach, allowing for the assessment of
lead-lag dynamics between income and CO2 emissions over time. By categorizing nations into the
World Bank’s income classifications, we found a heterogeneous EKC pattern highlighting distinct
environmental–economic dynamics across different income groups. The findings indicate that highincome countries show a decoupling of economic growth from CO2 emissions; whereas, low-income
countries still exhibit a positive correlation between both variables. This underscores the necessity
for tailored policy interventions that promote carbon neutrality, while considering each country’s
unique development stage. Our research contributes to the ongoing issue of sustainable economic
development by providing empirical evidence of the different pathways nations follow in balancing
growth with environmental preservation.
Description
Keywords
environmental Kuznets curve CO2 emissions economic growth cross-correlation analysis income levels sustainable development
Citation
Publisher
MDPI