New Evidence of Environmental Kuznets Curve Hypothesis in Developing Countries
New indexes of environment and institutions are constructed following principal component analysis (PCA), while non-linear panel regression is employed. This study attempts to estimate a non-linear impact of GDP per capita on the environment following the Environmental Kuznets Curve (EKC) Hypothesis...
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| Format: | UMS Journal (OJS) |
| Language: | eng |
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Muhammadiyah University Press
2021
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| Online Access: | https://journals.ums.ac.id/index.php/JEP/article/view/15794 |
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| author | Cahyadin, Malik Sari, Vita Kartika Juwita, Aulia Hapsari |
| author_facet | Cahyadin, Malik Sari, Vita Kartika Juwita, Aulia Hapsari |
| author_sort | Cahyadin, Malik |
| collection | OJS |
| description | New indexes of environment and institutions are constructed following principal component analysis (PCA), while non-linear panel regression is employed. This study attempts to estimate a non-linear impact of GDP per capita on the environment following the Environmental Kuznets Curve (EKC) Hypothesis for 97 developing countries during 1991-2014. The study reveals that a traditional EKC shows a U-shaped relationship under static panels, with both quadratic and cubic regressions. Interestingly, the inverted U-shaped occurs when a traditional EKC is estimated by the dynamic panels, with both quadratic and cubic regressions. Moreover, the EKC model is inverted U-shaped following static and dynamic panels, with both quadratic and cubic regressions under institutions. Indeed, the institutions significantly contribute to express EKC in developing countries. Policymakers should formulate environmental policies following climate change mitigation in the environmental sustainability framework, improve the quality of institutions, and increase macroeconomic management to anticipate external shocks such as openness, globalization, and FDI inflows. |
| format | UMS Journal (OJS) |
| id | oai:ojs2.journals.ums.ac.id:article-15794 |
| institution | Universitas Muhammadiyah Surakarta |
| language | eng |
| publishDate | 2021 |
| publisher | Muhammadiyah University Press |
| record_format | ojs |
| spelling | oai:ojs2.journals.ums.ac.id:article-15794 New Evidence of Environmental Kuznets Curve Hypothesis in Developing Countries Cahyadin, Malik Sari, Vita Kartika Juwita, Aulia Hapsari Environment; Institutions; GDP; EKC; non-linear panel regression E02, Q51, Q56 New indexes of environment and institutions are constructed following principal component analysis (PCA), while non-linear panel regression is employed. This study attempts to estimate a non-linear impact of GDP per capita on the environment following the Environmental Kuznets Curve (EKC) Hypothesis for 97 developing countries during 1991-2014. The study reveals that a traditional EKC shows a U-shaped relationship under static panels, with both quadratic and cubic regressions. Interestingly, the inverted U-shaped occurs when a traditional EKC is estimated by the dynamic panels, with both quadratic and cubic regressions. Moreover, the EKC model is inverted U-shaped following static and dynamic panels, with both quadratic and cubic regressions under institutions. Indeed, the institutions significantly contribute to express EKC in developing countries. Policymakers should formulate environmental policies following climate change mitigation in the environmental sustainability framework, improve the quality of institutions, and increase macroeconomic management to anticipate external shocks such as openness, globalization, and FDI inflows. Muhammadiyah University Press 2021-12-31 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf https://journals.ums.ac.id/index.php/JEP/article/view/15794 10.23917/jep.v22i2.15794 Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan; Vol 22, No 2 (2021): JEP 2021; 251-262 2460-9331 1411-6081 eng https://journals.ums.ac.id/index.php/JEP/article/view/15794/7349 https://journals.ums.ac.id/index.php/JEP/article/downloadSuppFile/15794/3706 Copyright (c) 2021 Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan https://creativecommons.org/licenses/by/4.0 |
| spellingShingle | Environment; Institutions; GDP; EKC; non-linear panel regression E02, Q51, Q56 Cahyadin, Malik Sari, Vita Kartika Juwita, Aulia Hapsari New Evidence of Environmental Kuznets Curve Hypothesis in Developing Countries |
| title | New Evidence of Environmental Kuznets Curve Hypothesis in Developing Countries |
| title_full | New Evidence of Environmental Kuznets Curve Hypothesis in Developing Countries |
| title_fullStr | New Evidence of Environmental Kuznets Curve Hypothesis in Developing Countries |
| title_full_unstemmed | New Evidence of Environmental Kuznets Curve Hypothesis in Developing Countries |
| title_short | New Evidence of Environmental Kuznets Curve Hypothesis in Developing Countries |
| title_sort | new evidence of environmental kuznets curve hypothesis in developing countries |
| topic | Environment; Institutions; GDP; EKC; non-linear panel regression E02, Q51, Q56 |
| topic_facet | Environment; Institutions; GDP; EKC; non-linear panel regression E02, Q51, Q56 |
| url | https://journals.ums.ac.id/index.php/JEP/article/view/15794 |
| work_keys_str_mv | AT cahyadinmalik newevidenceofenvironmentalkuznetscurvehypothesisindevelopingcountries AT sarivitakartika newevidenceofenvironmentalkuznetscurvehypothesisindevelopingcountries AT juwitaauliahapsari newevidenceofenvironmentalkuznetscurvehypothesisindevelopingcountries |