Testing the environmental Kuznets curve hypothesis: the role of energy consumption and democratic accountability
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RESEARCH ARTICLE
Testing the environmental Kuznets curve hypothesis: the role of energy consumption and democratic accountability Hasan Güngör 1 & Ifedolapo Olabisi Olanipekun 2
&
Ojonugwa Usman 3
Received: 29 April 2020 / Accepted: 29 July 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Considering the role democratic structures play in shaping the policies that enhance environmental quality, this paper tests the environmental Kuznets curve (EKC) hypothesis by incorporating the role of energy consumption and democratic accountability for nine countries between 1990 and 2014. The pooled mean group (PMG) methodology and Emirmahmutoglu-Kose Granger causality test are employed. The empirical results validate the EKC hypothesis in the long run. The results also confirm that energy consumption significantly increases CO2 emissions in the long run and short run, while democratic accountability significantly reduces CO2 emissions in the long run. Causality test results indicate a two-way causal relationship between democratic accountability and economic growth, and also between energy consumption and economic growth. The study recommends among others, the need to strengthen democratic accountability and improve access to information that protects the environment. Keywords CO2 emissions . Energy consumption . Democratic accountability . Panel data . PMG model JEL classification C33 . O13 . Q56 Abbreviations CO2 Carbon dioxide DEMO Democratic accountability EC Energy consumption ECM Error correction model ECT Error correction term EKC Environmental Kuznets curve GDP Gross domestic product MG Mean group (MG) Responsible Editor: Eyup Dogan * Ifedolapo Olabisi Olanipekun [email protected] Hasan Güngör [email protected] Ojonugwa Usman [email protected] 1
Department of Economics, Eastern Mediterranean University, North Cyprus via Mersin 10, Famagusta, Turkey
2
Department of Economics, Adeyemi College of Education Ondo, Ondo, Nigeria
3
School of Business Education, Federal College of Education (Technical), Potiskum, Nigeria
PMG VECM Y Y2 DHp FE-OLS MWALD LA-VAR VAR ED ARDL CD LM CIPS CADF DHg → FGLS
Pooled mean group (PMG) Vector error correction model Income Income squared Durbin-Hausman cointegration panel test Fixed effect-ordinary least squares Modified Wald Lag augmented VAR Vector autoregression Environmental degradation Autoregressive distributed lag Cross-sectional dependence Lagrange multiplier Cross-sectional Im, Pesaran, and Shin Cross-sectional augmented Dickey Fuller Durbin-Hausman cointegration group mean Direction of causality Feasible generalized least squares
Introduction Climate change caused by increasing energy consumption reduces the welfare of the people. Nevertheless, among the major roles of democracy in the society is the improvement of
Environ Sci Pollut Res
welfare for the people through democratic accountability. One of the contemporary energy issues faced by societies today is the need to address the environmental degradation caused by increasi
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