Reinvestigating the Environmental Kuznets Curve (EKC) hypothesis by a composite model constructed on the Armey curve hypothesis with government spending for the US States.

The Armey curve hypothesis the EKC hypothesis

Journal

Environmental science and pollution research international
ISSN: 1614-7499
Titre abrégé: Environ Sci Pollut Res Int
Pays: Germany
ID NLM: 9441769

Informations de publication

Date de publication:
Mar 2022
Historique:
received: 07 06 2021
accepted: 21 09 2021
pubmed: 16 10 2021
medline: 12 2 2022
entrez: 15 10 2021
Statut: ppublish

Résumé

This study reinvestigates the EKC hypothesis for US states with a new methodology that differs from all previous empirical studies using traditional EKC models. To this aim, this methodology, for the first time, unifies two seemingly different but strongly interrelated hypotheses (models), namely the Armey curve (AC) and traditional EKC models, into one single composite model. The rationale for creating this composite model is twofold. First, the functional propositions of these two hypotheses are depicted with inverted U-shaped curves. Second, they also have economically interrelated-causal relationships. This means that rising government spending (through the AC hypothesis) increases real GDP per capita (RGDPPC) and, consequently, increases in RGDPPC (through the EKC hypothesis) increase CO

Identifiants

pubmed: 34651268
doi: 10.1007/s11356-021-16720-2
pii: 10.1007/s11356-021-16720-2
doi:

Substances chimiques

Carbon Dioxide 142M471B3J

Types de publication

Journal Article

Langues

eng

Sous-ensembles de citation

IM

Pagination

16472-16483

Informations de copyright

© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.

Références

Ahmad M, Jabeen G, Irfan M, Işık C, Rehman A (2021a) Do inward foreign direct investment and economic development improve local environmental quality: aggregation bias puzzle. Environ Sci Pollut Res:1–21
Ahmad M, Işık C, Jabeen G, Ali T, Ozturk I, Atchike DW (2021b) Heterogeneous links among urban concentration, non-renewable energy use intensity, economic development, and environmental emissions across regional development levels. Sci Total Environ 765:144527
Ahmad M, Jabeen G, Shah SAA. Rehman A, Ahmad F, Işık C (2021c) Assessing long-and short-run dynamic interplay among balance of trade, aggregate economic output, real exchange rate, and CO2 emissions in Pakistan. Environ Dev Sustain 1–41
Alvarado R, Tillaguango B, López-Sánchez M, Ponce P, Işık C (2021a) Heterogeneous impact of natural resources on income inequality: the role of the shadow economy and human capital index. Econ Anal Policy 69:690–704
Alvarado R, Tillaguango B, Dagar V, Ahmad M, Işık C, Méndez P, Toledo E (2021b) Ecological footprint, economic complexity and natural resources rents in Latin America: empirical evidence using quantile regressions. J Clean Prod 318:128585
An H, Razzaq A, Haseeb M, Mihardjo LW (2021) The role of technology innovation and people’s connectivity in testing environmental Kuznets curve and pollution heaven hypotheses across the Belt and Road host countries: new evidence from Method of Moments Quantile Regression. Environ Sci Pollut Res 28(5):5254–5270
Anser MK, Yousaf Z, Nassani AA, Abro MMQ, Zaman K (2020) International tourism, social distribution, and environmental Kuznets curve: evidence from a panel of G-7 countries. Environ Sci Pollut Res 27(3):2707–2720
Apergis N, Christou C, Gupta R (2017) Are there Environmental Kuznets Curves for US state-level CO2 emissions? Renew Sust Energ Rev 69(C):551–558
Armey D (1995) The freedom revolution: why big government failed, why freedom works, and how we will rebuild America. Regnery Publishing, Washington, DC
Aslan A, Destek MA, Okumus I (2018) Bootstrap rolling window estimation approach to analysis of the Environment Kuznets Curve hypothesis: evidence from the USA. Environ Sci Pollut Res 25(3):2402–2408
Barro RJ (1990) Government spending in a simple model of endogenous growth. J Polit Econ 98:S103–S125
Bastiat F (1983) Oeuvres économiques, coll. Libre échange, PUF, Paris
Bekun FV, Alola AA, Gyamfi BA et al (2021) The relevance of EKC hypothesis in energy intensity real-output trade-off for sustainable environment in EU-27. Environ Sci Pollut Res 28:51137–51148. https://doi.org/10.1007/s11356-021-14251-4
Bilgili F, Nathaniel SP, Kuşkaya S, Kassouri Y (2021) Environmental pollution and energy research and development: an Environmental Kuznets Curve model through quantile simulation approach. Environ Sci Pollut Res:1–16
Bozma G, Başar S, Eren M (2019) Investigating validation of Armey curve hypothesis for G7 countries using ARDL model. Doğuş Üniversitesi Dergisi 20(1):4–59
Breusch TS, Pagan AR (1980) The Lagrange multiplier test and its applications to model specification in econometrics. Rev Econ Stud 47(XLVII):239–253
Chao J, Grubel H (1998) Optimal levels of spending and taxation in Canada, Chapter in How to use the fiscal surplus: what is the optimum size of government, The Fraser Institute, Vancouver.
Cheong-Fatt N, Chee-Keong C, Lin-Sea L (2020) Environmental Kuznets curve hypothesis: asymmetry analysis and robust estimation under cross-section dependence. Environ Sci Pollut Res Int 27(15):18685–18698
Colombier C (2009) Growth effects of fiscal policies: an application of robust modified M-estimator. Appl Econ 41(7):899–912
Connolly M, Li C (2016) Government spending and economic growth in the OECD countries. J Econ Policy Reform 19(4):386–395
Dar AA, Khalkhali SA (2002) Government size, factor accumulation, and economic growth: evidence from OECD countries. J Policy Model 24(7–8):679–692
Data Planet (2021) Data Planet Statistical Datasets by SAGE Publishing Resource
Dogan E, Inglesi-Lotz R (2020) The impact of economic structure to the environmental Kuznets curve (EKC) hypothesis: evidence from European countries. Environ Sci Pollut Res 27(11):12717–12724
Dogan E, Ozturk I (2017) The influence of renewable and non-renewable energy consumption and real income on CO2 emissions in the USA: evidence from structural break tests. Environ Sci Pollut Res 24(11):10846–10854
Dogan E, Turkekul B (2016) CO2 emissions, real output, energy consumption, trade, urbanization and financial development: testing the EKC hypothesis for the USA. Environ Sci Pollut Res 23(2):1203–1213
Dogan E, Ulucak R, Kocak E, Isik C (2020) The use of ecological footprint in estimating the environmental Kuznets curve hypothesis for BRICST by considering cross-section dependence and heterogeneity. Sci Total Environ 723:138063
Dogru T, Işık C, Sirakaya-Turk E. (2019) The balance of trade and exchange rates: Theory and contemporary evidence from tourism. Tour Manag 74:12–23
Dogru T, Bulut U, Kocak E, Isik C, Suess C, Sirakaya-Turk E (2020) The nexus between tourism, economic growth, renewable energy consumption, and carbon dioxide emissions: contemporary evidence from OECD countries. Environ Sci Pollut Res 27(32):40930–40948
Eberhardt M, Teal F (2010) Productivity analysis in global manufacturing production. University of Oxford Department of Economics Discussion Paper Series 515.
EIA (2021) U.S. Energy Information Administration, https://www.eia.gov/state/seds/seds-data-complete.php
Go YH, Lau LS, Ng CF, Yiew TH (2021) Obesity Kuznets curve hypothesis and global warming: a robust estimation under cross-section dependence. Environ Sci Pollut Res:1–9
Grossman GM, Krueger AB (2019) Environmental impacts of a North American Free Trade Agreement. National Bureau of Economic Research Working Paper: 3914, NBER, Cambridge MA.
Güngör H, Abu-Goodman M, Olanipekun IO, Usman O (2021) Testing the environmental Kuznets curve with structural breaks: the role of globalization, energy use, and regulatory quality in South Africa. Environ Sci Pollut Res 28(16):20772–20783
Gyamfi BA, Adedoyin FF, Bein MA, Bekun FV (2021) Environmental implications of N-shaped environmental Kuznets curve for E7 countries. Environ Sci Pollut Res 1-11.
Işık C (2010) Natural gas consumption and economic growth in Turkey: a bound test approach. Ener Syst 1(4):441–456
Işık C (2013) The importance of creating a competitive advantage and investing in information technology for modern economies: an ARDL test approach from Turkey. J Knowl Econ 4(4):387–405
Işık C, Kasımatı E, Ongan S (2017) Analyzing the causalities between economic growth, financial development, international trade, tourism expenditure and/on the CO2 emissions in Greece. Energy Sources, Part B: Economics, Planning, and Policy 12(7):665–673
Işık C, Dogru, T, Turk ES (2018) A nexus of linear and non-linear relationships between tourism demand, renewable energy consumption, and economic growth: Theory and evidence. Int J Tour Res 20(1):38–49
Işık C, Ongan S, Ozdemir D (2019a) Testing the EKC hypothesis for ten US states: an application of heterogeneous panel estimation method. Environ Sci Pollut Res 26(11):10846–10853
Işık C, Ongan S, Özdemir D (2019b) The economic growth/development and environmental degradation: evidence from the US state-level EKC hypothesis. Environ Sci Pollut Res 26(30):30772–30781
Işık C et al (2020) An evaluation of the tourism-induced environmental Kuznets curve (T-EKC) hypothesis: evidence from G7 Countries. Sustainability 12(21):9150
Işık C et al (2021a) The increases and decreases of the environment Kuznets curve (EKC) for 8 OECD countries. Environ Sci Pollut Res 28(22):28535–28543
Işık C et al (2021b) Convergence analysis of the ecological footprint: theory and empirical evidence from the USMCA countries. Environ Sci Pollut Res:1–12
Karras G (1997) On the optimal government size in Europe: theory and empirical evidence. Manch Sch 65(3):280–294
Khan I, Hou F (2021) Does multilateral environmental diplomacy improve environmental quality? The case of the United States. Environ Sci Pollut Res (Forthcoming) 28:23310–23322
Knoop TA (1999) Growth, welfare, and the size of government. J Econ Inquiry 37(1):103–119
Lucas RE (1988) On the mechanics of economic development. J Monet Econ 22:3–42
Minlah MK, Zhang X (2021) Testing for the existence of the Environmental Kuznets Curve (EKC) for CO 2 emissions in Ghana: evidence from the bootstrap rolling window Granger causality test. Environ Sci Pollut Res 28(2):2119–2131
Murshed M, Alam R, Ansarin A (2021) The environmental Kuznets curve hypothesis for Bangladesh: the importance of natural gas, liquefied petroleum gas, and hydropower consumption. Environ Sci Pollut Res 28(14):17208–17227
Naqvi SAA, Shah SAR, Anwar S, Raza H (2021) Renewable energy, economic development, and ecological footprint nexus: fresh evidence of renewable energy environment Kuznets curve (RKC) from income groups. Environ Sci Pollut Res 28(2):2031–2051
Nawaz MN, Alvi S, Akmal T (2021) The impasse of energy consumption coupling with pollution haven hypothesis and environmental Kuznets curve: a case study of South Asian economies. Environ Sci Pollut Res 28:48799–48807
Ongan S, Işık C, Özdemir D (2017) The effects of real exchange rates and income on international tourism demand for the USA from some European Union countries. Econ 5(4):51
Ongan S, Ozdemir D, Işık C (2018) Testing the J-curve hypothesis for the USA: applications of the nonlinear and linear ARDL models. South-Eastern Europe Journal of Economics 16(1)
Ongan S, Isik C, Ozdemir D (2021) Economic growth and environmental degradation: evidence from the US case environmental Kuznets curve hypothesis with application of decomposition. J Environ Econ Policy 10(1):14–21
Pata UK, Işık C (2021) Determinants of the load capacity factor in China: A novel dynamic ARDL approach for ecological footprint accounting. Resour Pol 74:102313
Pesaran MH (2004) General diagnostic tests for cross section dependence. CESifo Working Paper 1229.
Pesaran MH (2007) A simple panel unit root test in the presence of cross-section dependence. J Appl Econ 22:265–312
Pesaran MH, Yamagata T (2008) Testing slope homogeneity in large panels. J Econ 142(10):50–93
Pesaran MH, Ullah A, Yamagata T (2008) A bias-adjusted LM test of error cross-section independence. Econ J 11:105–127
Rajput S, Tariq A (2019) Government size and economic growth: a panel data study comparing OECD and non-OECD countries. Appl Econ J 26(2):22–37
Rehman A, Ulucak R, Murshed M, Ma H, Işık C (2021a) Carbonization and atmospheric pollution in China: The asymmetric impacts of forests, livestock production, and economic progress on CO2 emissions. J Environ Manag 294:113059
Rehman A, Ma H, Ahmad M, Ozturk I, Işık C (2021b) An asymmetrical analysis to explore the dynamic impacts of CO2 emission to renewable energy, expenditures, foreign direct investment, and trade in Pakistan. Environ Sci Pollut Res 28:1–13
Rehman A, Ma H, Ahmad M, Ozturk I, Işık C (2021c) Estimating the connection of information technology, foreign direct investment, trade, renewable energy and economic progress in Pakistan: evidence from ARDL approach and cointegrating regression analysis. Environ Sci Pollut Res 28:1–13
Romer PM (1986) Increasing returns and long-run growth. J Polit Econ 94:1002–1037
Pablo-Romero MdP, Pozo-Barajas R, Molleda-Jimena G (2021) Residential energy environmental Kuznets curve extended with non-linear temperature effects: a quantile regression for Andalusian (Spain) municipalities. Environ Sci Pollut Res 28:48984–48999. https://doi.org/10.1007/s11356-021-13608-z
Roy AG (2009) Evidence on economic growth and government size. Appl Econ 41:607–614
Sarte PD (2001)Rent-seeking bureaucracies and oversight in a simple growth model. J Econ Dyn Control 25:1345–1365
Scully GW (1994) What is the optimal size of government in the US? Policy Report 188, National Center for Policy Analysis.
Shahbaz M, Solarin SA, Hammoudeh S, Shahzad SJH (2017) Bounds testing approach to analyzing the environment Kuznets curve hypothesis with structural beaks: the role of biomass energy consumption in the United States. Energy Econ 68:548–565
Shahzad U, Radulescu M, Rahim S, Isik C, Yousaf Z, Ionescu SA (2021) Do environment-related policy instruments and technologies facilitate renewable energy generation? Exploring the Contextual Evidence from Developed Economies. Energies 14(3):690
Sohag K, Mariev O, Davidson N (2021) Revising environmental Kuznets curve in Russian regions: role of environmental policy stringency. Environ Sci Pollut Res 28:52873–52886. https://doi.org/10.1007/s11356-021-14515-z
Solow RM (1956) A contribution to the theory of economic growth. Q J Econ 70:65–94
Sun Y, Li M, Zhang M, Khan HSUD, Li J, Li Z, Sun H, Zhu Y, Anaba OA (2021) A study on China’s economic growth, green energy technology, and carbon emissions based on the Kuznets curve (EKC). Environ Sci Pollut Res 28(6):7200–7211
Urban Institute (2021) State and Local Finance Data.  https://state-local-finance-data.taxpolicycenter.org/pages.cfm
Vedder RK, Gallaway LE (1998) Government size and economic growth. Paper prepared for the Joint Economic Committee of the US Congress, Washington.
Verbič M, Satrovic E, Muslija A (2021) Environmental Kuznets curve in Southeastern Europe: the role of urbanization and energy consumption. Environ Sci Pollut Res:1–11
Westerlund J (2007) Testing for error correction in panel data. Oxf Bull Econ Stat 69(6):709–748

Auteurs

Cem Işık (C)

Faculty of Tourism, Anadolu University, Tepebaşı, Eskişehir, Turkey. cemisik@anadolu.edu.tr.

Serdar Ongan (S)

Department of Economics, University of South Florida, Tampa, FL, 33620, USA.

Umit Bulut (U)

Faculty of Economics and Administrative Sciences, Kirsehir Ahi Evran University, Kirsehir, Turkey.

Sahir Karakaya (S)

Department of Economics, Galatasaray University, İstanbul, Turkey.

Muhammad Irfan (M)

School of Management and Economics & Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081, People's Republic of China.
Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081, China.

Rafael Alvarado (R)

Esai Business School, Universidad Espíritu Santo, 091650, Samborondon, Ecuador.

Munir Ahmad (M)

School of Economics, Zhejiang University, Hangzhou, 310058, People's Republic of China.

Abdul Rehman (A)

College of Economics and Management, Henan Agricultural University, Zhengzhou, 450002, People's Republic of China.

Articles similaires

Photosynthesis Ribulose-Bisphosphate Carboxylase Carbon Dioxide Molecular Dynamics Simulation Cyanobacteria
Semiconductors Photosynthesis Polymers Carbon Dioxide Bacteria
Cities China Government Conservation of Natural Resources Humans
China Cities Humans Economic Development Commerce

Classifications MeSH