Environmental Kuznets Curve Hypothesis in Ethiopia: Is Environmental Development a Priority Over Economic Development for 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; yet, in the short run, people cannot afford to pay more for environmental development. Compared to less urbanized places, those who live in more urbanized states are more prepared to pay for a cleaner environment. The study concludes that economic development takes precedence over environmental development and suggests pro-growth economic policies supported by environmental-focused foreign development assistance.