Testing the Energy-Environmental Kuznets Curve Hypothesis in the Renewable and Nonrenewable Energy Consumption Models in Egypt

Abstract

The Environmental Kuznets Curve (EKC) association between income and pollution emissions proxies has been extensively tested in the environmental literature. However, testing of the energy-EKC is scanty. This present research examined the energy–EKC in the cubic relationship of economic growth and different renewable and nonrenewable energy proxies in Egypt from 1965–2019. In the long run, we corroborate the N-shaped relationships in the case of primary energy, oil, and coal consumption models, and confirm the long run energy–EKC association in these energy proxies. Moreover, we find turning points of the N-curve for these energy sources in 1998, 2000, and 1979–2005, in primary energy, oil, and coal consumption models, respectively. Hence, economic growth is responsible for increasing nonrenewable energy consumption and has environmental consequences in Egypt. In the short run, we find N-shaped relationships in the case of primary energy, oil, and coal consumption. Further, we find an inverted U-shaped relationship in the case of natural gas consumption. In addition, we corroborate an inverted N-shaped relationship in the case of hydroelectricity consumption, a renewable energy source. Hence, we confirm the short-run energy–EKC relationship in all investigated renewable and nonrenewable energy proxies.