Testing the environmental Kuznets Curve hypothesis at the sector level: Evidence from PNARDL for OECD countries

dc.authorid0000-0002-1297-1993en_US
dc.authorid0000-0003-4763-9314en_US
dc.authorid0000-0003-1495-924Xen_US
dc.authorid0000-0003-4106-3799en_US
dc.contributor.authorMuratoğlu, Yusuf
dc.contributor.authorSongur, Mehmet
dc.contributor.authorUğurlu, Erginbay
dc.contributor.authorŞanlı, Devran
dc.date.accessioned2024-11-08T06:16:24Z
dc.date.available2024-11-08T06:16:24Z
dc.date.issued2024en_US
dc.departmentDicle Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İktisat Bölümüen_US
dc.description.abstractSince the contribution of economic sectors to GDP is heterogeneous, they also contribute differently to CO2 emissions and environmental degradation. In this regard, it is crucial to examine the Environmental Kuznets Curve (EKC) hypothesis at the sectoral level. Nevertheless, despite the extensive research conducted on the Environmental Kuznets Curve (EKC) hypothesis, significant gaps remain in the existing literature, particularly at the sectoral level. This study makes a novel contribution to the existing literature on the environmental EKC hypothesis by examining its validity across four distinct sectors: agriculture, industry, manufacturing, and services. Additionally, it makes a second contribution to the literature by examining the effect of energy consumption on CO2 asymmetrically, employing a novel panel non-linear ARDL (PNARDL) method. The study employs annual data from 38 OECD countries, spanning the period from 1990 to 2022. The findings demonstrate that the EKC hypothesis is valid for sectors other than the industrial sector and for the economy as a whole. The turning point of the Kuznets Curve for the total economy is estimated as $29250 GDP per capita. The PNARDL model’s error correction term (ect) is negative and significant. However, the magnitude of the term suggests that the system will return to long-term equilibrium after approximately 2.87 years following any shock. Asymmetric effects are valid for four sectors. Moreover, the empirical results clearly show that energy consumption has asymmetric effects on emissions in both the long and short run. Positive and negative shocks in energy consumption increase CO2 emissions in OECD economies in the long run. It has been determined that agriculture is the sector that causes the most environmental degradation by increasing CO2 emissions. This situation highlights the limited availability of productive capital equipment and renewable sources in the agricultural sector, even in OECD countries. As a result, the findings show that there is a different relationship between each sector’s GDP and CO2 emissions. It is important for policymakers to formulate sector-specific policies to reduce CO2 emissions while fostering GDP growth.en_US
dc.identifier.citationMuratoğlu, Y., Songur, M., Uğurlu, E. ve Şanlı, D. (2024). Testing the environmental Kuznets Curve hypothesis at the sector level: Evidence from PNARDL for OECD countries. Frontiers in Energy Research, 12, 1-14.en_US
dc.identifier.endpage14en_US
dc.identifier.issn2296-598X
dc.identifier.scopus2-s2.0-85204938598
dc.identifier.scopusqualityQ2
dc.identifier.startpage1en_US
dc.identifier.urihttps://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2024.1452906/full
dc.identifier.urihttps://hdl.handle.net/11468/28931
dc.identifier.volume12en_US
dc.indekslendigikaynakScopus
dc.institutionauthorSongur, Mehmet
dc.language.isoenen_US
dc.publisherFrontiers Media SAen_US
dc.relation.ispartofFrontiers in Energy Research
dc.relation.isversionof10.3389/fenrg.2024.1452906en_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectEKC hypothesisen_US
dc.subjectEnergy consumptionen_US
dc.subjectEnvironmental degradationen_US
dc.subjectOECD countriesen_US
dc.subjectPanel NARDLen_US
dc.titleTesting the environmental Kuznets Curve hypothesis at the sector level: Evidence from PNARDL for OECD countriesen_US
dc.titleTesting the environmental Kuznets Curve hypothesis at the sector level: Evidence from PNARDL for OECD countries
dc.typeArticleen_US

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