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Environmental Kuznets Curve (EKC): A Manual provides a comprehensive summary of the EKC, summarizing work on this economic tool that can analyze environmental pollution problems. By enabling users to reconcile environmental and economic development policies, Environmental Kuznets Curve studies lend themselves to the investigation of the energy-growth and finance-energy nexus. The book obviates a dependence on outmoded tools, such as carrying capacity, externalities, ecosystem valuation and cost benefit analysis, while also encouraging flexible approaches to a variety of challenges. Provides a comprehensive summary of EKC studies, including advances in econometrics, literature reviews and historical perspectives Outlines solutions to common problems in applying EKC techniques by reviewing major case studies Explores frequently-utilized proxies for environmental quality

The environmental Kuznets curve (EKC) hypothesis proposes that there is an inverted U-shape relation between environmental degradation and income per capita. This has been taken to imply that economic growth will eventually redress the environmental impacts of the early stages of economic development. The literature on this issue has developed rapidly over the last few years. This paper examines whether progress has been made on both understanding the EKC phenomenon and on addressing the various criticisms raised against some of the empirical studies and their interpretation in the policy literature. Though basic EKC studies continue to be carried out, recent work has focused on the effect of a variety of conditioning variables on the environmental impact-GDP relationship. Some attempts have also been made to examine the history of the relationship in individual countries. The econometric techniques used have improved. However, empirical decompositions of the EKC into proximate or underlying causes are either limited in scope or non-systematic, and explicit testing of the various theoretical models has not yet been attempted.

This paper examines the relationship between per capita income and a wide range of environmental indicators using cross-country panel sets. The manner in which this has been done overcomes several of the weaknesses asscociated with the estimation of environmental Kuznets curves (EKCs). outlined by Stern et al. (1996). Results suggest that meaningful EKCs exist only for local air pollutants whilst indicators with a more global, or indirect, impact either increase monotonically with income or else have predicted turning points at high per capita income levels with large standard errors – unless they have been subjected to a multilateral policy initiative. Two other findings are also made: that concentration of local pollutants in urban areas peak at a lower per capita income level than total emissions per capita; and that transport-generated local air pollutants peak at a higher per capita income level than total emissions per capita. Given these findings, suggestions are made regarding the necessary future direction of environmental policy.

Recent empirical research has examined the relationship between certain
indicators of environmental degradation and income, concluding that in some
cases an inverted U-shaped relationship, which has been called an
environmental Kuznets curve (EKC), exists between these variables. The source
of growth explanation is important for two reasons. First, it demonstrates
how the pollution consequences of growth depend on the source of growth.
Therefore, the analogy drawn by some in the environmental community between
the damaging effects of economic development and those of liberalized trade
is, at best, incomplete. Second, the source of growth explanation
demonstrates that a strong policy response to income gains is not necessary
for pollution to fall with growth. The aim of this paper investigates the
role of differences source of growth in environmental quality of Iran. The
results show the two growth resources in Iran cause, in the early stages, CO2
emission decreases until turning point but beyond this level of income per
capita, economic growth leads to environmental degradation. I find a U
relationship between environmental degradation (CO2 emission) and economic
growth in Iran.

Purpose - This study analyzes the moderating role of financial development in the Environmental Kuznets Curve (EKC) hypothesis in 25 countries.Methods - This paper uses Lin and Chu unit root test to check the stationary of the variables. The unit root test result leads to the investigation using the panel pooled mean group model.Findings - The results of the long-run analysis show that the EKC hypothesis exists, and financial development plays its role in two ways. Firstly, it confirms the EKC hypothesis, and secondly, it improves the coefficients of supporting variables, namely economic growth, energy growth, and manufacturing value-added. The results are robust to changing the proxies of dependent as well as independent variables. The error correction model results show that the sign of the error correction term is negative and significant, implying that all of the models will converge toward their long-run equilibrium.Implications - Financial development is a crucial determinant to reduce environmental degradation in these countries. This implies that the governments of these countries should focus on enhancing financial development for the betterment of the environment.Originality - The study analyzes the role of the financial sector as a moderating role in the EKC hypothesis both in emerging economies and well-developed economies.