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TESTS OF THE EKC HYPOTHESIS USING CO2 PANEL …
sis H0: YNB − YB = 0 where YNB is income per capita in non-border countries and YB is income per capita in the border countries. Results of the t-tests confirm that we cannot reject the null hypothesis of no statistical difference between BOD and income levels between groups. Governments of countries that share a river may be able to more successfully enforce environmental regulation.
The contribution of this study lies in studying the role of Environmental Kuznets Curve and Pollution Haven Hypothesis (PHH) by empirically analyzing the contributions made by various researches till date. The research also tries to establish the link between the economic growth and quality by citing examples of various nations, developing and developed.
Empirical Analysis of the EKC Hypothesis for SO2 ..
People use forest products at the early stage of development, but after a certain rise in income per capita, forest products are replaced with some other alternative products that do not exert any harm to the forest (). Higher population growth and the consequent agricultural expansion significantly cause deforestation and this trend can be halted through vertical development of agriculture and constructing socio-political institutions (, , , ). This development of agriculture can go forward at some point of increased national income. These are the basics of EKC consideration in deforestation. The idea depends on several factors. Forest biomass fuels, especially firewood collected from forests, have been found to be universally dominant, especially in rural areas of the developing countries (). In many countries, household income has been found to be the major driving force for determining the type of preferred energy carrier. (e.g., , , ). In addition to this, “Energy Ladder Hypothesis” shows how the households shifts from using apparently dirty fuels to efficient clean fuels with the improvement of socio-economic conditions, especially income (, , , ). Thus, fuel-wood use is assumed to be reduced with increasing income per capita by replacing it with modern energies, e.g., gas, electricity, etc. Amount of timber used in furniture, house building or other chores will be reduced with the substitution of wood composite materials, alternative reinforced building materials and the like (, ). Another fact is that both the government and private sectors can induce several afforestation programs and make them successful if GDP/income per is above a certain level. The successful reforestation program in the Republic of Korea and the recent afforestation/reforestation success in Vietnam corroborate this statement (, , , ). Furthermore, with increasing income per capita, education and awareness about the environment will also increase, which will in turn help reduce the rate of deforestation. However, all of these factors should be considered to contain uncertainties.
Several experts often argue the fate of developing and poor countries through the viewpoint of EKC. As EKC shows that economic growth is the only possible way to retard deforestation when will they achieve enough income per capita to reach turning point? However, Munasinghe (, ) has hypothesized a tunnel through the EKC which will help developing countries to attain a lower turning point by adopting measures from the developed ones (). He has shown three possible paths of economic development aligned with the environmental damages. Among them, an economy should look for an optimal path through which it will avoid severe or moderate distortions of its environment ().
EKC and the income elasticity hypothesis Land for …
Bangladesh, a south Asian least developed country, has been experiencing severe deforestation over the last 3 to 4 decades. Still, Bangladesh has not found any effective way to halt the deforestation. It hypothesizes that Bangladesh is presently at the initial up-facing stage of EKC considering deforestation. Many studies were found to judge the EKC for deforestation in different developing countries (, , ). While studying the economic impacts on deforestation at a global level, Scrieciu () concluded that case-specific factors might influence deforestation in different countries and socio-geographic zones. Therefore, he focused his research on a more disaggregate, local level. However, there is no validly published study of EKC on deforestation in Bangladesh. This study aimed at relating the results of EKC for other developing countries with Bangladesh. What will be the fate of the deforestation of Bangladesh in regards to ongoing economic development? Will Bangladesh follow the inverted U-shape of the EKC? If yes, what should be the economic and environmental policy to retard deforestation within a shorter period? We expect this paper will contribute significantly to this environmental issue. The findings of the study would be of immense importance for the forestry development in Bangladesh.
In this study, the research has addressed the problem of the environmental Kuznets curve and pollution haven hypothesis in determining the environmental quality. The empirical studies show that pollution haven holds true in case of developing economies due to transfer of pollution intensive industries from developed to developing countries. Developing countries are becoming pollution havens because of imposition of less stringent regulations. However, these economies have lower standards because of high costs involved in imposing pollution standards. Next, these economies lack trained personnel to impose such standards. Corruption is deeply rooted in such economies which again possess the problem. Finally, the pollution intensity increases due to the shift from agricultural to manufacturing sector on account of rapid urbanization and population growth. Environmental Kuznets model when applied globally show evidences that only high-income countries have benefitted from increase in economic standards resulting in better environment standards. Other middle and low income economies are still in the clutches of poor air quality affecting the lives of millions of people.
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Testing the Environmental Kuznets Curve Hypothesis …
Millimet, D.L. and J. Roy, 2011. Three new empirical tests of the pollution haven hypothesis when environmental regulation is endogenous. Journal of Applied Econometrics, 11(5): 623-645.
Testing the EKC hypothesis by considering trade …
Dietzenbacher, E. and K. Mukhopadhyay, 2007. An empirical examination of the pollution haven hypothesis for India: Towards a green leontief paradox? Environmental and Resource Economics, 36(4): 427–449.
The Test of Industrial Environmental Kuznets Curve Hypothesis in ..
Cole, M.A., 2004. Trade, the pollution haven hypothesis and the environmental Kuznets curve: Examining the linkages. Ecological Econemics, 48(1): 71–81.
We find mixed evidence supporting the EKC hypothesis
Al-mulali, U., 2015. Investigating the environmental Kuznets curve (EKC) hypothesis by utilizing the ecological footprint as an indicator of environmental degradation. Ecological Indicators, 48: 315–323.
Arguments against the EKC Hypothesis - Urban Growth
Akbostanci, E., G.I. Tunç and S. Türüt-Asik, 2004. Pollution haven hypothesis and the role of dirty industries in Turkey’s exports. Ankara: ERC - Economic Research Center, Middle East Technical University.
Environmental Kuznets Curve Hypothesis: A Survey | …
The research finds that many developing economies like China, India and Brazil do not follow the principles of Environment Kuznets Curve hypothesis (EKC) and have become a pollution haven due to its high carbon dioxide emissions. India has moved away from being pollution haven because of the comparative advantage in the production of labor intensive goods. The economy of United States has been benefitted with the rise in per capita income. With the growth in technology and standard of living, people become more focused on environmental problems which helped U.S. in achieving better environmental quality along with economic growth. The Turkish economy is also benefitted from rising income levels and its environmental quality has improved in recent past. To conclude, the validity of EKC hypothesis increases with increase in income levels, as seen in case of high income economies. Low income economies are still not able to adopt cleaner technologies and renewable resources because of huge costs involved in such applications.
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