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The Social Cost of Growth: Unemployment and Environmental Degradation in the Mediterranean Region

Year 2026, Volume: 7 Issue: 2, 150 - 166, 26.02.2026
https://doi.org/10.54733/smar.1829186
https://izlik.org/JA67UD22GS

Abstract

The interrelationship between economic variables and environmental degradation has been extensively investigated within various economic paradigms, including the Environmental Kuznets Curve (EKC) and, more recently, the Environmental Phillips Curve (EPC). Given the increasing global focus on sustainable economic policies, understanding these relationships is crucial for designing effective environmental and labor market policies. The present study aims to examine the hypothesis of the existence of the Environmental Phillips Curve in Mediterranean countries from 1995 to 2021 while also reassessing the validity of the EKC within this regional context. Specifically, this research investigates how economic growth and unemployment influence environmental pollution. The study utilizes the Westerlund cointegration test with bootstrap to verify long-term relationships among the variables. Furthermore, Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) estimation methods are applied to examine the long-run effects comprehensively. The empirical results indicate that the variables are cointegrated, suggesting the presence of a stable, long-term equilibrium relationship. The findings substantiate the validity of both the Environmental Kuznets Curve and the Environmental Phillips Curve in Mediterranean countries. This indicates that there is a U-shaped relationship between economic growth and ecological footprint, and that there is a negative relationship between unemployment rates and ecological footprint.

References

  • Anser, M. K., Apergis, N., Syed, Q. R., & Alola, A. A. (2021). Exploring a new perspective of sustainable development drive through environmental Phillips curve in the case of the BRICST countries. Environmental Science and Pollution Research, 28(35), 48112-48122. https://doi.org/10.1007/s11356-021-14056-5
  • Aslan, M. (2025). Türkiye’de çevresel Phillips eğrisi hipotezinin incelenmesi: Fourier bootstrap ARDL yaklaşımı. Akademik Hassasiyetler, 12(29), 84-111. https://doi.org/10.58884/akademik-hassasiyetler.1645965
  • Ayad, H., & Djedaiet, A. (2024). Does the unemployment rate matter for environmental issues in the G7 nations? New testing for the environmental Phillips curve using the load capacity factor. Environment, Development and Sustainability, 1-31. https://doi.org/10.1007/s10668-024-04956-0
  • Azimi, M. N., & Rahman, M. M. (2024). Examining the environmental Phillips curve hypothesis in G7 nations: Critical insights from wavelet coherence and wavelet causality analysis. Quality & Quantity, 58(6), 5683-5713. https://doi.org/10.1007/s11135-024-01909-7
  • Balsalobre-Lorente, D., Ibáñez-Luzón, L., Usman, M., & Shahbaz, M. (2022). The environmental Kuznets curve, based on the economic complexity, and the pollution haven hypothesis in PIIGS countries. Renewable Energy, 185, 1441-1455. https://doi.org/10.1016/j.renene.2021.10.059
  • Baltagi, B. H., Feng, Q., & Kao, C. (2012). A Lagrange multiplier test for cross-sectional dependence in a fixed effects panel data model (Working Paper No. 137). Center for Policy Research, Maxwell School of Citizenship and Public Affairs, Syracuse University.
  • Bekun, F. V., Alola, A. A., Gyamfi, B. A., & Yaw, S. S. (2021). The relevance of EKC hypothesis in energy intensity real-output trade-off for sustainable environment in EU-27. Environmental Science and Pollution Research, 28(37), 51137-51148. https://doi.org/10.1007/s11356-021-14251-4
  • Bhowmik, R., Syed, Q. R., Apergis, N., Alola, A. A., & Gai, Z. (2022). Applying a dynamic ARDL approach to the environmental Phillips curve (EPC) hypothesis amid monetary, fiscal, and trade policy uncertainty in the USA. Environmental Science and Pollution Research, 29(10), 14914-14928. https://doi.org/10.1007/s11356-021-16716-y
  • Breusch, T. S., & Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239-253. https://doi.org/10.2307/2297111
  • Danish, Ulucak, R., & Khan, S. U. D. (2020). Determinants of the ecological footprint: Role of renewable energy, natural resources, and urbanization. Sustainable Cities and Society, 54, 101996. https://doi.org/10.1016/j.scs.2019.101996
  • Daştan, M., & Eygü, H. (2024). An empirical investigation of the link between economic growth, unemployment, and ecological footprint in Turkey: Bridging the EKC and EPC hypotheses. Environment, Development and Sustainability, 26(7), 18957-18988. https://doi.org/10.1007/s10668-023-04106-y
  • Demir, O. (2025). Çevresel Phillips eğrisi yaklaşımıyla MINT ülkelerinde büyüme–çevre ikileminin analizi. Journal of International Management Educational and Economics Perspectives, 13(2), 137-155.
  • Djedaiet, A. (2023). Does environmental quality react asymmetrically to unemployment and inflation rates? African OPEC countries’ perspective. Environmental Science and Pollution Research, 30(46), 102418-102427. https://doi.org/10.1007/s11356-023-29621-3
  • Dogan, E., & Seker, F. (2016). Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy. Renewable Energy, 94, 429-439. https://doi.org/10.1016/j.renene.2016.03.078
  • Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. The Quarterly Journal of Economics, 110(2), 353-377. https://doi.org/10.2307/2118443
  • Hacıimamoğlu, T. (2023). A new approach to sustainable development: Analysis of the environmental Phillips curve hypothesis. Sosyoekonomi, 31(56), 11-25. https://doi.org/10.17233/sosyoekonomi.2023.02.01
  • Herrerias, M. J., Joyeux, R., & Girardin, E. (2013). Short- and long-run causality between energy consumption and economic growth: Evidence across regions in China. Applied Energy, 112, 1483-1492. https://doi.org/10.1016/j.apenergy.2013.04.054
  • Kashem, M. A., & Rahman, M. M. (2020). Environmental Phillips curve: OECD and Asian NICs perspective. Environmental Science and Pollution Research, 27(25), 31153-31170. https://doi.org/10.1007/s11356-020-08620-8
  • Kinnunen, J., Georgescu, I., & Nica, I. (2024). Evaluating the environmental Phillips curve hypothesis in the STIRPAT framework for Finland. Sustainability, 16(11), 4381. https://doi.org/10.3390/su16114381
  • Konya, S. (2024). Çevresel Phillips eğrisi hipotezinin cinsiyet bakış açısıyla test edilmesi: MINT ülkelerinden ampirik kanıtlar. Journal of Emerging Economies and Policy, 9(1), 273-284.
  • Kuznets, S. (1955). Economic growth and income inequality. The American Economic Review, 45(1), 1-28.
  • Leitão, N. C., Dos Santos Parente, C. C., Balsalobre-Lorente, D., & Cantos Cantos, J. M. (2023). Revisiting the effects of energy, population, foreign direct investment, and economic growth in Visegrad countries under the EKC scheme. Environmental Science and Pollution Research, 30(6), 15102-15114. https://doi.org/10.1007/s11356-022-23188-1
  • Li, F., Dong, S., Li, X., Liang, Q., & Yang, W. (2011). Energy consumption-economic growth relationship and carbon dioxide emissions in China. Energy Policy, 39(2), 568-574. https://doi.org/10.1016/j.enpol.2010.10.025
  • Meyer, A. (2016). Is unemployment good for the environment?. Resource and Energy Economics, 45, 18-30. https://doi.org/10.1016/j.reseneeco.2016.04.001
  • Ng, C. F., Yii, K. J., Lau, L. S., & Go, Y. H. (2023). Unemployment rate, clean energy, and ecological footprint in OECD countries. Environmental Science and Pollution Research, 30(15), 42863-42872. https://doi.org/10.1007/s11356-021-17966-6
  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels (CESifo Working Paper No. 1229). Center for Economic Studies and ifo Institute (CESifo).
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross-section dependence. Journal of Applied Econometrics, 22(2), 265-312. https://doi.org/10.1002/jae.951
  • Phillips, A. W. (1958). The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1861–1957. Economica, 25(100), 283-299. https://doi.org/10.1111/j.1468-0335.1958.tb00003.x
  • Rahman, M. M., Mi̇çooğulları, S. A., Deği̇rmen, S., Alancıoğlu, E., & Moalla, M. (2025). Exploring the environmental Phillips Curve: How do globalization, economic growth, and institutional quality shape load capacity factors in highly globalized European countries?. Journal of Environmental Management, 390, 126322. https://doi.org/10.1016/j.jenvman.2025.126322
  • Sahin, G., Naimoglu, M., Kavaz, I., & Sahin, A. (2025). Examining the environmental Phillips curve hypothesis in the ten most polluting emerging economies: Economic dynamics and sustainability. Sustainability, 17(3), 920. https://doi.org/10.3390/su17030920
  • Shang, L., & Xu, P. (2022). Can carbon emission regulation achieve a dual target of low carbon and employment? An empirical analysis based on China’s provincial panel data. Frontiers in Energy Research, 10, 926443. https://doi.org/10.3389/fenrg.2022.926443
  • Shastri, S., Mohapatra, G., & Giri, A. K. (2023). The environmental Phillips curve from a gender perspective: Empirical evidence from India. Environmental Science and Pollution Research, 30(7), 17487-17496. https://doi.org/10.1007/s11356-022-23336-7
  • Tanveer, A., Song, H., Faheem, M., & Chaudhry, I. S. (2022). Validation of environmental Philips curve in Pakistan: A fresh insight through ARDL technique. Environmental Science and Pollution Research, 29(17), 25060-25077. https://doi.org/10.1007/s11356-021-17099-w
  • Tariq, S., Mehmood, U., Ul Haq, Z., & Mariam, A. (2022). Exploring the existence of environmental Phillips curve in South Asian countries. Environmental Science and Pollution Research, 29(23), 35396-35407. https://doi.org/10.1007/s11356-021-18099-6
  • Westerlund, J. (2007). Testing for error correction in panel data. Oxford Bulletin of Economics and Statistics, 69(6), 709-748. https://doi.org/10.1111/j.1468-0084.2007.00477.x
  • Yavuz, E., Kilic, E., & Caglar, A. E. (2024). A new hypothesis for the unemployment-environment dilemma: Is the environmental Phillips curve valid in the framework of load capacity factor in Turkiye?. Environment, Development and Sustainability, 26(11), 29475-29492. https://doi.org/10.1007/s10668-023-04258-x

Büyümenin Toplumsal Bedeli: Akdeniz Bölgesinde İşsizlik ve Çevresel Bozulma

Year 2026, Volume: 7 Issue: 2, 150 - 166, 26.02.2026
https://doi.org/10.54733/smar.1829186
https://izlik.org/JA67UD22GS

Abstract

Ekonomik değişkenler ile çevresel bozulma arasındaki karşılıklı ilişki, Çevresel Kuznets Eğrisi (EKC) ve daha yakın zamanda Çevresel Phillips Eğrisi (EPC) dahil olmak üzere çeşitli ekonomik paradigmalar çerçevesinde kapsamlı bir şekilde incelenmiştir. Sürdürülebilir ekonomi politikalarına yönelik küresel ilginin artmasıyla birlikte, bu ilişkileri anlamak, etkili çevre ve işgücü piyasası politikaları tasarlamak için hayati önem taşımaktadır. Bu çalışma, 1995-2021 yılları arasında Akdeniz ülkelerinde Çevresel Phillips Eğrisi'nin varlığı hipotezini incelemek ve aynı zamanda bu bölgesel bağlamda EKC'nin geçerliliğini yeniden değerlendirmek amacıyla yapılmıştır. Özellikle, bu araştırma ekonomik büyüme ve işsizliğin çevre kirliliğini nasıl etkilediğini incelemektedir. Çalışma, değişkenler arasındaki uzun vadeli ilişkileri doğrulamak için bootstrap ile Westerlund eşbütünleşme testini kullanmaktadır. Ayrıca, uzun vadeli etkileri kapsamlı bir şekilde incelemek için Tamamen Modifiye Edilmiş Sıradan En Küçük Kareler (FMOLS) ve Dinamik Sıradan En Küçük Kareler (DOLS) tahmin yöntemleri uygulanmaktadır. Ampirik sonuçlar, değişkenlerin eşbütünleşik olduğunu göstermekte ve istikrarlı, uzun vadeli bir denge ilişkisinin varlığını işaret etmektedir. Bulgular, Akdeniz ülkelerinde hem Çevresel Kuznets Eğrisi hem de Çevresel Phillips Eğrisi'nin geçerliliğini doğrulamaktadır. Bu, ekonomik büyüme ile ekolojik ayak izi arasında U şeklinde bir ilişki olduğunu ve işsizlik oranları ile ekolojik ayak izi arasında negatif bir ilişki olduğunu göstermektedir.

References

  • Anser, M. K., Apergis, N., Syed, Q. R., & Alola, A. A. (2021). Exploring a new perspective of sustainable development drive through environmental Phillips curve in the case of the BRICST countries. Environmental Science and Pollution Research, 28(35), 48112-48122. https://doi.org/10.1007/s11356-021-14056-5
  • Aslan, M. (2025). Türkiye’de çevresel Phillips eğrisi hipotezinin incelenmesi: Fourier bootstrap ARDL yaklaşımı. Akademik Hassasiyetler, 12(29), 84-111. https://doi.org/10.58884/akademik-hassasiyetler.1645965
  • Ayad, H., & Djedaiet, A. (2024). Does the unemployment rate matter for environmental issues in the G7 nations? New testing for the environmental Phillips curve using the load capacity factor. Environment, Development and Sustainability, 1-31. https://doi.org/10.1007/s10668-024-04956-0
  • Azimi, M. N., & Rahman, M. M. (2024). Examining the environmental Phillips curve hypothesis in G7 nations: Critical insights from wavelet coherence and wavelet causality analysis. Quality & Quantity, 58(6), 5683-5713. https://doi.org/10.1007/s11135-024-01909-7
  • Balsalobre-Lorente, D., Ibáñez-Luzón, L., Usman, M., & Shahbaz, M. (2022). The environmental Kuznets curve, based on the economic complexity, and the pollution haven hypothesis in PIIGS countries. Renewable Energy, 185, 1441-1455. https://doi.org/10.1016/j.renene.2021.10.059
  • Baltagi, B. H., Feng, Q., & Kao, C. (2012). A Lagrange multiplier test for cross-sectional dependence in a fixed effects panel data model (Working Paper No. 137). Center for Policy Research, Maxwell School of Citizenship and Public Affairs, Syracuse University.
  • Bekun, F. V., Alola, A. A., Gyamfi, B. A., & Yaw, S. S. (2021). The relevance of EKC hypothesis in energy intensity real-output trade-off for sustainable environment in EU-27. Environmental Science and Pollution Research, 28(37), 51137-51148. https://doi.org/10.1007/s11356-021-14251-4
  • Bhowmik, R., Syed, Q. R., Apergis, N., Alola, A. A., & Gai, Z. (2022). Applying a dynamic ARDL approach to the environmental Phillips curve (EPC) hypothesis amid monetary, fiscal, and trade policy uncertainty in the USA. Environmental Science and Pollution Research, 29(10), 14914-14928. https://doi.org/10.1007/s11356-021-16716-y
  • Breusch, T. S., & Pagan, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239-253. https://doi.org/10.2307/2297111
  • Danish, Ulucak, R., & Khan, S. U. D. (2020). Determinants of the ecological footprint: Role of renewable energy, natural resources, and urbanization. Sustainable Cities and Society, 54, 101996. https://doi.org/10.1016/j.scs.2019.101996
  • Daştan, M., & Eygü, H. (2024). An empirical investigation of the link between economic growth, unemployment, and ecological footprint in Turkey: Bridging the EKC and EPC hypotheses. Environment, Development and Sustainability, 26(7), 18957-18988. https://doi.org/10.1007/s10668-023-04106-y
  • Demir, O. (2025). Çevresel Phillips eğrisi yaklaşımıyla MINT ülkelerinde büyüme–çevre ikileminin analizi. Journal of International Management Educational and Economics Perspectives, 13(2), 137-155.
  • Djedaiet, A. (2023). Does environmental quality react asymmetrically to unemployment and inflation rates? African OPEC countries’ perspective. Environmental Science and Pollution Research, 30(46), 102418-102427. https://doi.org/10.1007/s11356-023-29621-3
  • Dogan, E., & Seker, F. (2016). Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy. Renewable Energy, 94, 429-439. https://doi.org/10.1016/j.renene.2016.03.078
  • Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. The Quarterly Journal of Economics, 110(2), 353-377. https://doi.org/10.2307/2118443
  • Hacıimamoğlu, T. (2023). A new approach to sustainable development: Analysis of the environmental Phillips curve hypothesis. Sosyoekonomi, 31(56), 11-25. https://doi.org/10.17233/sosyoekonomi.2023.02.01
  • Herrerias, M. J., Joyeux, R., & Girardin, E. (2013). Short- and long-run causality between energy consumption and economic growth: Evidence across regions in China. Applied Energy, 112, 1483-1492. https://doi.org/10.1016/j.apenergy.2013.04.054
  • Kashem, M. A., & Rahman, M. M. (2020). Environmental Phillips curve: OECD and Asian NICs perspective. Environmental Science and Pollution Research, 27(25), 31153-31170. https://doi.org/10.1007/s11356-020-08620-8
  • Kinnunen, J., Georgescu, I., & Nica, I. (2024). Evaluating the environmental Phillips curve hypothesis in the STIRPAT framework for Finland. Sustainability, 16(11), 4381. https://doi.org/10.3390/su16114381
  • Konya, S. (2024). Çevresel Phillips eğrisi hipotezinin cinsiyet bakış açısıyla test edilmesi: MINT ülkelerinden ampirik kanıtlar. Journal of Emerging Economies and Policy, 9(1), 273-284.
  • Kuznets, S. (1955). Economic growth and income inequality. The American Economic Review, 45(1), 1-28.
  • Leitão, N. C., Dos Santos Parente, C. C., Balsalobre-Lorente, D., & Cantos Cantos, J. M. (2023). Revisiting the effects of energy, population, foreign direct investment, and economic growth in Visegrad countries under the EKC scheme. Environmental Science and Pollution Research, 30(6), 15102-15114. https://doi.org/10.1007/s11356-022-23188-1
  • Li, F., Dong, S., Li, X., Liang, Q., & Yang, W. (2011). Energy consumption-economic growth relationship and carbon dioxide emissions in China. Energy Policy, 39(2), 568-574. https://doi.org/10.1016/j.enpol.2010.10.025
  • Meyer, A. (2016). Is unemployment good for the environment?. Resource and Energy Economics, 45, 18-30. https://doi.org/10.1016/j.reseneeco.2016.04.001
  • Ng, C. F., Yii, K. J., Lau, L. S., & Go, Y. H. (2023). Unemployment rate, clean energy, and ecological footprint in OECD countries. Environmental Science and Pollution Research, 30(15), 42863-42872. https://doi.org/10.1007/s11356-021-17966-6
  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels (CESifo Working Paper No. 1229). Center for Economic Studies and ifo Institute (CESifo).
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross-section dependence. Journal of Applied Econometrics, 22(2), 265-312. https://doi.org/10.1002/jae.951
  • Phillips, A. W. (1958). The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1861–1957. Economica, 25(100), 283-299. https://doi.org/10.1111/j.1468-0335.1958.tb00003.x
  • Rahman, M. M., Mi̇çooğulları, S. A., Deği̇rmen, S., Alancıoğlu, E., & Moalla, M. (2025). Exploring the environmental Phillips Curve: How do globalization, economic growth, and institutional quality shape load capacity factors in highly globalized European countries?. Journal of Environmental Management, 390, 126322. https://doi.org/10.1016/j.jenvman.2025.126322
  • Sahin, G., Naimoglu, M., Kavaz, I., & Sahin, A. (2025). Examining the environmental Phillips curve hypothesis in the ten most polluting emerging economies: Economic dynamics and sustainability. Sustainability, 17(3), 920. https://doi.org/10.3390/su17030920
  • Shang, L., & Xu, P. (2022). Can carbon emission regulation achieve a dual target of low carbon and employment? An empirical analysis based on China’s provincial panel data. Frontiers in Energy Research, 10, 926443. https://doi.org/10.3389/fenrg.2022.926443
  • Shastri, S., Mohapatra, G., & Giri, A. K. (2023). The environmental Phillips curve from a gender perspective: Empirical evidence from India. Environmental Science and Pollution Research, 30(7), 17487-17496. https://doi.org/10.1007/s11356-022-23336-7
  • Tanveer, A., Song, H., Faheem, M., & Chaudhry, I. S. (2022). Validation of environmental Philips curve in Pakistan: A fresh insight through ARDL technique. Environmental Science and Pollution Research, 29(17), 25060-25077. https://doi.org/10.1007/s11356-021-17099-w
  • Tariq, S., Mehmood, U., Ul Haq, Z., & Mariam, A. (2022). Exploring the existence of environmental Phillips curve in South Asian countries. Environmental Science and Pollution Research, 29(23), 35396-35407. https://doi.org/10.1007/s11356-021-18099-6
  • Westerlund, J. (2007). Testing for error correction in panel data. Oxford Bulletin of Economics and Statistics, 69(6), 709-748. https://doi.org/10.1111/j.1468-0084.2007.00477.x
  • Yavuz, E., Kilic, E., & Caglar, A. E. (2024). A new hypothesis for the unemployment-environment dilemma: Is the environmental Phillips curve valid in the framework of load capacity factor in Turkiye?. Environment, Development and Sustainability, 26(11), 29475-29492. https://doi.org/10.1007/s10668-023-04258-x
There are 36 citations in total.

Details

Primary Language English
Subjects Policy and Administration (Other)
Journal Section Research Article
Authors

Dilek Alma Savaş 0000-0001-6246-8539

Submission Date November 24, 2025
Acceptance Date February 13, 2026
Publication Date February 26, 2026
DOI https://doi.org/10.54733/smar.1829186
IZ https://izlik.org/JA67UD22GS
Published in Issue Year 2026 Volume: 7 Issue: 2

Cite

APA Alma Savaş, D. (2026). The Social Cost of Growth: Unemployment and Environmental Degradation in the Mediterranean Region. Sosyal Mucit Academic Review, 7(2), 150-166. https://doi.org/10.54733/smar.1829186