Research Article

Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model

Volume: 11 Number: 1 April 22, 2025
TR EN

Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model

Abstract

Various studies and research were carried out, particularly by developed countries, to ensure that the production process, a fundamental part of economic growth and development, is carried out in an environmentally sustainable manner. In this context, the theory known as the Environmental Kuznets Hypothesis (EKH), which addresses the association between income levels and environmental damage, has been widely tested by researchers. This study investigates the relationship between income levels and environmental damage in OECD member countries and tests the validity of the EKH. For this purpose, data covering the period 1965-2020 were analyzed using a panel data-based dynamic threshold model. The analysis results suggest that the income threshold value is calculated as 3,204. The findings confirm the validity of the EKH. Additionally, the results reveal that economic growth negatively impacts the environment and leads to environmental degradation until the income threshold level is reached. However, in line with the hypothesis, once the income threshold level is exceeded, the adverse effects of economic growth on environmental degradation gradually diminish. When all findings are considered together, it is clearly demonstrated that the association between income level and environmental damage exhibits an inverted U-shape pattern

Keywords

References

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Details

Primary Language

English

Subjects

Econometric and Statistical Methods, Environmental Economy

Journal Section

Research Article

Early Pub Date

April 15, 2025

Publication Date

April 22, 2025

Submission Date

February 28, 2025

Acceptance Date

March 23, 2025

Published in Issue

Year 2025 Volume: 11 Number: 1

APA
Eroğlu Sevinç, D., & Akıncı, M. (2025). Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model. Uluslararası Ekonomi Ve Yenilik Dergisi, 11(1), 161-179. https://doi.org/10.20979/ueyd.1648845
AMA
1.Eroğlu Sevinç D, Akıncı M. Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model. UEYD. 2025;11(1):161-179. doi:10.20979/ueyd.1648845
Chicago
Eroğlu Sevinç, Demet, and Merter Akıncı. 2025. “Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model”. Uluslararası Ekonomi Ve Yenilik Dergisi 11 (1): 161-79. https://doi.org/10.20979/ueyd.1648845.
EndNote
Eroğlu Sevinç D, Akıncı M (April 1, 2025) Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model. Uluslararası Ekonomi ve Yenilik Dergisi 11 1 161–179.
IEEE
[1]D. Eroğlu Sevinç and M. Akıncı, “Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model”, UEYD, vol. 11, no. 1, pp. 161–179, Apr. 2025, doi: 10.20979/ueyd.1648845.
ISNAD
Eroğlu Sevinç, Demet - Akıncı, Merter. “Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model”. Uluslararası Ekonomi ve Yenilik Dergisi 11/1 (April 1, 2025): 161-179. https://doi.org/10.20979/ueyd.1648845.
JAMA
1.Eroğlu Sevinç D, Akıncı M. Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model. UEYD. 2025;11:161–179.
MLA
Eroğlu Sevinç, Demet, and Merter Akıncı. “Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model”. Uluslararası Ekonomi Ve Yenilik Dergisi, vol. 11, no. 1, Apr. 2025, pp. 161-79, doi:10.20979/ueyd.1648845.
Vancouver
1.Demet Eroğlu Sevinç, Merter Akıncı. Does Economic Growth Impact Environmental Degradation? Evidence from OECD Countries Using the Panel Dynamic Threshold Model. UEYD. 2025 Apr. 1;11(1):161-79. doi:10.20979/ueyd.1648845

International Journal of Economics and Innovation

Karadeniz Technical University, Department of Economics, 61080, Trabzon/Türkiye

https://dergipark.org.tr/en/pub/ueyd


33974

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