AN ANALYSIS OF ENVIRONMENTAL KUZNETS CURVE FOR JAPANESE ECONOMY

Year 2016, Volume: 5 Issue: 2, 146 - 159, 31.12.2016

Ercan Sarıdoğan Burak Güriş Ayhan Uçak

Abstract

Japanese economy achieved a rapid economic development process for the period of 1950-1980 with environmental problems. By the by mid 1970s, Japan introduced important environmental regulatory reforms and environ- mental clean-up reforms. However, Japan faced challenged both environ- mental problems and economic stagnation since 1990s. In this study, Environmental Kuznets curve is analysed for Japanese economy for the period 1960 to 2010 using annual data by using cointegration test with structural breaks by developed Maki (2012). Environmental Kuz- nets curve means there is an inverted-U relationship between environmental degradation and income per capita. In the study it is found that the N-shaped Kuznets curve confirmed for Japanese economy for the period.

Keywords

Environmental Kuznets Curve, Japanese Economy, Cointegration Test with Structural Break

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