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

Year 2020, Volume: 8 Issue: İktisadi ve İdari Bilimler, 23 - 31, 18.12.2020

Aboubakary Nulambeh Ndzembanteh Nueraili Wusıman

https://doi.org/10.18506/anemon.631461

Cited By: 1

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

Abstract

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.

Keywords

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

References

• Aboagye, S., & Kwakwa, P. A. (2015). Towards Economic Growth and Development in Sub-Saharan Africa: Does That Mar the Environment? Allied Social Science Associations 2015 Annual Meeting in Boston, Massachusetts.
• Agarwal, R. N. (2012). Economic Globalisation, Growth and the Environment: Testing of Environment Kuznet Curve Hypothesis for Malaysia. Journal of Business and Financial Affairs, 1(2), 1-8.
• Aka, B. F. (2008). Effects Of Trade And Growth On Air Pollution In The Aggregated Sub-Saharan Africa. International Journal of Applied Econometrics and Quantitative Studies, 5(1), 5-14.
• Alege, P. O., & Ogundipe, A. A. (2013). Environmental quality and economic growth in Nigeria: A fractional cointegration analysis. International Journal of Development and Sustainability, 2(2), 580-596.
• Amoro, G., & Shen, Y. (2012). The Determinants of Agricultural Export: Cocoa and Rubber in Cote d’Ivoire. International Journal of Economics and Finance, 5(1), 228–233.
• Awad, A., & Warsame, M. H. (2017). Climate Changes in Africa: Does Economic Growth Matter? A Semi-parametric Approach. International Journal of Energy Economics and Policy, 7(1), 1-8.
• Bamou, E., & Masters, W. A. (2007). Distortions to Agricultural Incentives in Cameroon (Agricultural Distortions Working Paper 42). Retrieved from World Bank: http://siteresources.worldbank.org/INTTRADERESEARCH/Resources/544824-1146153362267/Cameroon_0708.pdf
• Bond, C. A., Burger, N., & Nguyen, P. (2015). Implications of Australian Economic Growth for Environmental Sustainability (Working Paper WR-1081). Australian Council of Learned Academies, Melbourne.
• Carillo, F., & Maietta, O. W. (2014). The relationship between economic growth and environmental quality: the contributions of economic structure and agricultural policies. New Medit, 13(1), 15-21.
• Chandra, V., Lin, J. Y., & Wang, Y. (2013). Leading Dragon Phenomenon: New opportunities for Catch-Up in Low-Income Countries. Asian Development Review, 30(1), 52–84.
• Dickey, D. A., & Fuller, W. A. (1979). Distribution of the Estimators for Autoregressive Time Series With a Unit Root. Journal of the American Statistical Association, 74(366), 427-431.
• Engle, R. F., & Granger, C. W. (1987). Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica, 55(2), 251-276. Fakher, H.-A., & Abedi, Z. (2017). Relationship between Environmental Quality and Economic Growth in Developing Countries (based on Environmental Performance Index). Environmental Energy and Economic Research, 1(3), 299-310.
• Gill, A. R., Viswanathan, K. K., & Hassan, S. (2018). The Environmental Kuznets Curve (EKC) and the environmental problem of the day. Renewable and Sustainable Energy Reviews, 81(2), 1636-1642.
• Granger, C. W., & Newbold, P. (1974). Spurious regressions in econometrics. Journal of Econometrics, 2(2), 111-120.
• Grossman, G. M., & Krueger, A. B. (1991). Environmental Impacts of a North American Free Trade Agreement (NBER working paper no. 3914). National Bureau of Economic Research.
• Hilaire, N., & Fotio, H. K. (2015). Effects of Economic Growth on CO2 Emissions in the “Congo Basin” Countries. International Journal of Economics and Finance, 7(1), 107-117.
• Holtz-Eakin, D., & Selden, T. M. (1995). Stoking the fires? CO2 emissions and economic growth. Journal of Public Economics, 57(1), 85-101.
• Johansen, S., & Juselius, K. (1990). Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money. Oxford Bulletin of Economics and Statistics, 52(2), 169-210.
• Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45(1), 1-28.
• Martı́nez-Zarzoso, I., & Bengochea-Morancho, A. (2004). Pooled mean group estimation of an environmental Kuznets curve for CO2. Economics Letters, 82(1), 121-126.
• Masih, R., & Masih, A. (2001). Long and short term dynamic causal transmission amongst international stock markets. Journal of International Money and Finance, 20(4), 563-587.
• Mishra, P. K. (2000). The Dynamics of Relationship between Exports and Economic Growth in India. International Journal of Economics and Applied Research, 4(2), 53-70.
• Pettinger, T. (17 September, 2017). Explaining Theories of Economic Growth. Retrieved from Economicshelp: https://www.economicshelp.org/blog/57/growth/explaining-theories-of-economic-growth/
• Phillips, P. C., & Perron, P. (1988). Testing for a Unit Root in Time Series Regression. Biometrika, 75(2), 335-346.
• Phimphanthavong, H. (2013). The Impacts of Economic Growth on Environmental Conditions in Laos. International Journal of Business Management and Economic Research, 4(5), 766-774.
• Selden, T. M., & Song, D. (1994). Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions? Journal of Economic Management, 27(2), 147-162.
• Solow, R. M. (1963). A Contribution to the Theory of Economic Growth Author( s ): Robert M . Solow. The Quarterly Journal of Economics, 70(1), 65-94.
• Tiwari, A. K. (2011). Energy Consumption, Co2 Emission and Economic Growth: A Revisit of the Evidence from India. Applied Econometrics and International Development, 11(2), 165-189.
• Valadez, G. V., & Hu, J. (2016). Relationship between the Environment and Economic Growth in China via Exports : A Perspective of Ecological Impact (2000-2014). Journal of Environmental Protection, 7(11), 1670-1692.
• Zheng, H., Huai, W., & Huang, L. (2015). Relationship between Pollution and Economic Growth in China: Empirical Evidence from 111 Cities. Journal of Urban and Environmental, 9(1), 22-31.