An Empirical Analysis of the Environmental Kuznets Curve: the Case of Cameroon

Abstract

This study investigates the association between financial development, trade openness, economic growth (GDP), and environmental quality (CO2) in Cameroon from 1980-2016. To examine the relevance of the Environmental Kuznets Curve (EKC), the squared of GDP is included in the model. The Johansen-Juselius co-integration tests demonstrate that a robust long-run relationship exists between the variables. Specifically, GDP influences carbon dioxide emissions negatively, while GDP squares positively. The Granger causality tests further indicate that the GDP and GDP squared caused CO2 emissions uni-directionally in the short-run with no feedback. The findings settled that the EKC, with a U-shape relationship, is relevant in Cameroon. Therefore, it is recommended that the government focus on implementing policies that raise growth with minimal emissions of pollution.

Keywords

• Financial Development
• Trade Openness
• Growth
• CO2 emissions
• Cameroon
• Environmental Kuznets Curve

Çevresel Kuznets Eğrisinin Bir Ampirik Analizi: Kamerun Örneği

Öz

Bu çalışma 1980-2016 dönemi Kamerun’un finansal gelişme, ticaret açıklığı, ekonomik büyüme (GSYH) ve çevre kalitesi (CO2) arasındaki ilişkiyi araştırmaktadır. Çevresel Kuznets Eğrisini (ÇKE) incelemek için, modelde GSYH ve GSYH karesi içerilmektedir. Johansen-Juselius Eş-Bütünleşme Testi uygulanmıştır ve bulgular, finansal gelişme, ticaret açıklığı, GSYH ve karbondioksit emisyonu arasında uzun dönemli sağlam bir ilişkinin olduğunu göstermektedir. Özellikle, GSYH çevre kalitesini negatif etkilerken, GSYH karesi ile çevre kalitesi arasında pozitif bir ilişki sergilenmektedir. Granger nedensellik analizi, kısa dönemde GSYH ve GSYH karesi CO2 emisyonuna tek yönlü neden olduğunu göstermektedir. Bu sonuç, U- şekiili ilişkinin, Kamerun’da geçerli olduğunu, ve tersine uzun dönemde CO2 emisyonu ekonomik büyüme ile birlikte artmaktadır. Bu nedenle, hükümetin, en düşük düzey kirletici emisyonu ile büyümeyi artıran politikalara odaklanması önerilmektedir.

Anahtar Kelimeler

• Finansal gelişme
• Ticaret Açıklığı
• Büyüme
• CO2 Emisyonu
• Kamerun
• Çevresel Kuznets Eğrisi

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