2016/03/09 by Gazi A. Uddin, Khorshed Alam, Jeff Gow
Business, Management and Accounting · Economics, Econometrics and Finance · Environmental Science · #Energy, Environment, Economic Growth #Environmental Impact and Sustainability #Environmental Sustainability in Business
paper · doi:10.1111/1467-8454.12061
crossref issued 2016/03/09 · crossref published 2016/03/09 · crossref published-online 2016/03/09 · openalex publication_date 2016/03/09 · crossref created 2016/03/12 · crossref published-print 2016/09/01 · crossref deposited 2023/10/05 · openalex created_date 2025/10/10 · crossref indexed 2026/07/27 · openalex updated_date 2026/07/28
This paper examines the relationship between income and environmental quality using environmental Kuznets curve (EKC) hypothesis. The hypothesised link is tested using time‐series analysis of 22 countries over the period 1961–2011. The degree of environmental impacts of economic activity is measured using ecological footprint (EF) per capita as explanatory variable, while real gross domestic product (GDP) per capita and its quadratic and cubic forms are used as predictor variables in these countries. First, the EKC hypothesis is tested through examining the relationship between EF and GDP using linear, quadratic and cubic functions. Further, the long‐run relationship between EF and GDP is investigated using a vector error correction model. It was found that there is a cointegrated relationship between the variables in almost all countries, which was statistically significant, and EKC supported in 10 countries. Additionally, almost all error correction terms are correct in sign and are significant, which implies that some percentage of disequilibria in EF in the previous year adjusts back to the long‐run equilibrium in the current year. Therefore, an efficient trade‐off between environmental protection and economic benefits should be taken, and EF should be reduced through changing consumption patterns, improving the efficiency of use of resources and cleaner technology choices.