Environmental Kuznets Curve Hypothesis in Ethiopia

Abstract

Abstract This study used regional panel data from Ethiopia to examine the degree to which Ethiopia adhere to the environmental Kuznets curve hypothesis and, in turn, estimate the extent to which its people are willing to contribute to environmental development. According to the research, the country complies with the environmental Kuznets curve hypothesis; though environmental resources are regarded either basic or inferior commodity. In relatively more urbanized regions (Harari and Addis Ababa), EKC is U-shaped, negating the hypothesis. During the short run, environmental willingness to pay is typically seen to be low across the nation, with residents of states with higher levels of forestation being more ready to pay for a cleaner environment. The study concludes that economic development takes precedence over environmental development and suggests pro-growth economic policies backed by environmental development assistances.