The inverted n-shaped relationship between economic growth and CO2 emissions: Evidence from OECD countries
Modern economic growth has led to increased levels of international trade, large-scale industrialisation, and major technological advancements, resulting in substantial negative externalities on a global scale. Among these, environmental degradation has emerged as a significant global publi...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics, Belgrade
2025-01-01
|
| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | https://doiserbia.nb.rs/img/doi/0013-3264/2025/0013-32642544007B.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849315939826270208 |
|---|---|
| author | Bulut Abdulkadir Tekdemir Nazmiye |
| author_facet | Bulut Abdulkadir Tekdemir Nazmiye |
| author_sort | Bulut Abdulkadir |
| collection | DOAJ |
| description | Modern economic growth has led to increased levels of international trade,
large-scale industrialisation, and major technological advancements,
resulting in substantial negative externalities on a global scale. Among
these, environmental degradation has emerged as a significant global public
bad. Balancing economic growth objectives while addressing environmental
challenges remains a critical issue for modern society. This study examines
the relationship between economic growth and environmental degradation
across 33 OECD countries during the period 1996-2015, employing a fixed
effects model with the Driscoll-Kraay standard error estimation approach.
The analysis reveals an inverted N-shaped relationship between economic
growth and CO₂ emissions, contradicting the conventional environmental
Kuznets curve theory. The results also show that renewable energy
consumption and stronger institutional quality help reduce CO₂ emissions,
while non-renewable energy consumption and higher levels of industrial
activity have the opposite effect. |
| format | Article |
| id | doaj-art-e8331a60d6bd4df8b890374e91e3d8a1 |
| institution | Kabale University |
| issn | 0013-3264 1820-7375 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Faculty of Economics, Belgrade |
| record_format | Article |
| series | Ekonomski Anali |
| spelling | doaj-art-e8331a60d6bd4df8b890374e91e3d8a12025-08-20T03:51:59ZengFaculty of Economics, BelgradeEkonomski Anali0013-32641820-73752025-01-017024473310.2298/EKA2544007B0013-32642544007BThe inverted n-shaped relationship between economic growth and CO2 emissions: Evidence from OECD countriesBulut Abdulkadir0https://orcid.org/0000-0001-6351-0583Tekdemir Nazmiye1https://orcid.org/0000-0002-7292-569XFaculty of Economics and Administrative Sciences, Hitit University, Corum, TurkiyeFaculty of Economics and Administrative Sciences, Kirikkale University, Kirikkale, TurkiyeModern economic growth has led to increased levels of international trade, large-scale industrialisation, and major technological advancements, resulting in substantial negative externalities on a global scale. Among these, environmental degradation has emerged as a significant global public bad. Balancing economic growth objectives while addressing environmental challenges remains a critical issue for modern society. This study examines the relationship between economic growth and environmental degradation across 33 OECD countries during the period 1996-2015, employing a fixed effects model with the Driscoll-Kraay standard error estimation approach. The analysis reveals an inverted N-shaped relationship between economic growth and CO₂ emissions, contradicting the conventional environmental Kuznets curve theory. The results also show that renewable energy consumption and stronger institutional quality help reduce CO₂ emissions, while non-renewable energy consumption and higher levels of industrial activity have the opposite effect.https://doiserbia.nb.rs/img/doi/0013-3264/2025/0013-32642544007B.pdfenvironmental qualityglobal public badekc hypothesisrenewable energyinstitutional quality |
| spellingShingle | Bulut Abdulkadir Tekdemir Nazmiye The inverted n-shaped relationship between economic growth and CO2 emissions: Evidence from OECD countries Ekonomski Anali environmental quality global public bad ekc hypothesis renewable energy institutional quality |
| title | The inverted n-shaped relationship between economic growth and CO2 emissions: Evidence from OECD countries |
| title_full | The inverted n-shaped relationship between economic growth and CO2 emissions: Evidence from OECD countries |
| title_fullStr | The inverted n-shaped relationship between economic growth and CO2 emissions: Evidence from OECD countries |
| title_full_unstemmed | The inverted n-shaped relationship between economic growth and CO2 emissions: Evidence from OECD countries |
| title_short | The inverted n-shaped relationship between economic growth and CO2 emissions: Evidence from OECD countries |
| title_sort | inverted n shaped relationship between economic growth and co2 emissions evidence from oecd countries |
| topic | environmental quality global public bad ekc hypothesis renewable energy institutional quality |
| url | https://doiserbia.nb.rs/img/doi/0013-3264/2025/0013-32642544007B.pdf |
| work_keys_str_mv | AT bulutabdulkadir theinvertednshapedrelationshipbetweeneconomicgrowthandco2emissionsevidencefromoecdcountries AT tekdemirnazmiye theinvertednshapedrelationshipbetweeneconomicgrowthandco2emissionsevidencefromoecdcountries AT bulutabdulkadir invertednshapedrelationshipbetweeneconomicgrowthandco2emissionsevidencefromoecdcountries AT tekdemirnazmiye invertednshapedrelationshipbetweeneconomicgrowthandco2emissionsevidencefromoecdcountries |