Analysing of the Relationship Among Poverty, Income Inequality, and Environmental Pollution Based on Kuznets Curve Model: Evidence from Developed Countries

Year 2025, Volume: 25 Issue: 4, 627 - 640, 04.11.2025

Fuat Lebe , Yusuf Ekrem Akbaş

https://doi.org/10.21121/eab.20250401

Abstract

In this study, it is analysed that the relationship between carbon dioxide (CO2) emissions, income inequality, and poverty within the framework of the Environmental Kuznets Curve (EKC) in 14 developed countries over the period 2000-2018. The panel Fourier unit root test, Dynamic Seemingly Unrelated Regression (DSUR) estimator and panel causality test are applied to analyze the relationship between these variables. The results show that there is no significant relationship among poverty, income inequality, energy consumption and CO2 emissions. Moreover, it is found out that the EKC hypothesis, which suggests an inverted U-shaped relationship between per capita income and CO2 emissions, is valid in developed countries. Also, it is determined that the turning points are smaller than GDP per capita in fourteen countries.

Keywords

Poverty , Income inequality , EKC , Panel dynamic SUR , Panel causality

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