Prospects of Environmental Kuznets Curve and Green Growth in Developed and Developing Economies

Abstract

The study empirically investigated the determinants of Environmental Quality using energy utilization intensity, and globalization. The investigation determines linear, inverted U shaped or N shaped relationship between CO2 emission and GDP using panel ARDL approach. 64 countries are selected for making two panel data models of developed economies and developing economies for the time period 1970-2015. The outcomes showed that in long run increase in the energy use intensity and the global integration lead to an increase in the CO2 emissions. In the case ofGDP, the study has confirmed an inverted U shape relationship proposing prospects of green growth. Hence, results of the study found that there is significant evidence of global environmental Kuznets curve for both economies. In comparison, developing economies pollute more with an increase in GDP, but they are also expected to revert faster towards green growth as compared to developed economies.