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Economic Growth and Carbon Dioxide Emissions: Investigating the Environmental Kuznets Curve Hypothesis in Algeria

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  • Miloud Lacheheb

    (Department of Economics, Universiti Putra Malaysia, Serdang, Malaysia, Department of Management, Universite Kasdi Merbah, Ouargla, Algeria.)

  • A. S. Abdul Rahim

    (Department of Economics, Universiti Putra Malaysia, Serdang, Malaysia,)

  • Abdalla Sirag

    (Department of Economics, Universiti Putra Malaysia, Serdang, Malaysia,)

Abstract

This study examines the existence of environmental Kuznets curve (EKC) hypothesis between economic growth and carbon dioxide (CO2) emission in Algeria for the period 1971-2009 using autoregressive distributed lag co-integration framework. Data were retrieved from World Bank Development Indicators. Importantly, our findings reveal that EKC hypothesis does not exist. In addition, the long run models show that income and population appear to have significant impact on CO2 emission especially from solid fuel consumption and electricity and heat production. However, only population is revealed to promote CO2 from liquid fuel consumption. These findings suggest a dire need for Algeria to shift towards service intensive economy rather than resource intensive, and alternative renewable energy sources in order to mitigate environmental degradation as well as promote economic development.

Suggested Citation

  • Miloud Lacheheb & A. S. Abdul Rahim & Abdalla Sirag, 2015. "Economic Growth and Carbon Dioxide Emissions: Investigating the Environmental Kuznets Curve Hypothesis in Algeria," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 1125-1132.
    • Handle: RePEc:eco:journ2:2015-04-25
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    More about this item

    Keywords

    Air Pollution; Economic Growth; Environmental Kuznets Curve Hypothesis;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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