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Testing the Environmental Kuznets Curve Hypothesis in Uruguay using Ecological Footprint as a Measure of Environmental Degradation

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  • Selim J rgen Ergun

    (Middle East Technical University - Northern Cyprus Campus, Economics Program, Kalkanl , G zelyurt, 99738, North Cyprus, Turkey)

  • Maria Fernanda Rivas

    (Middle East Technical University - Northern Cyprus Campus, Economics Program, Kalkanl , G zelyurt, 99738, North Cyprus, Turkey)

Abstract

This paper, using data for the time period 1971-2014, analyzes the relationship between GDP per capita, foreign direct investment, energy use per capita, and environmental degradation measured by the Ecological Footprint in Uruguay. It also tests whether the Environmental Kuznets Curve (EKC) hypothesis holds. While environmental degradation is positively related with energy use per capita in the long run, its relationship with foreign direct investment in the long-run is negative. The inverted U-shaped relationship between GDP per capita and environmental degradation implies that the EKC hypothesis is verified. The policy recommendations include the implementation of measures leading to more energy saving and more efficient use of energy, investing in cleaner and more efficient technologies, and policies that would increment the share of modern renewable sources in energy consumption.

Suggested Citation

  • Selim J rgen Ergun & Maria Fernanda Rivas, 2020. "Testing the Environmental Kuznets Curve Hypothesis in Uruguay using Ecological Footprint as a Measure of Environmental Degradation," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 473-485.
    • Handle: RePEc:eco:journ2:2020-04-59
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    1. Koç, Pınar & Gülmez, Ahmet, 2021. "Analysis of relationships between nanotechnology applications, mineral saving and ecological footprint: Evidence from panel fourier cointegration and causality tests," Resources Policy, Elsevier, vol. 74(C).
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    3. Simona-Roxana Ulman & Costica Mihai & Cristina Cautisanu & Ioan-Sebastian Brumă & Oana Coca & Gavril Stefan, 2021. "Environmental Performance in EU Countries from the Perspective of Its Relation to Human and Economic Wellbeing," IJERPH, MDPI, vol. 18(23), pages 1-26, December.
    4. Lian Xue & Mohammad Haseeb & Haider Mahmood & Tarek Tawfik Yousef Alkhateeb & Muntasir Murshed, 2021. "Renewable Energy Use and Ecological Footprints Mitigation: Evidence from Selected South Asian Economies," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    5. XuGuang Wang & Liang Yan & XiaoGuang Zhao, 2022. "Tackling the ecological footprint in china through energy consumption, economic growth and CO2 emission: an ARDL approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(2), pages 511-531, April.
    6. Okelele, Daniel Ochudi & Lokina, Razack & Ruhinduka, Remidius Denis, 2021. "Effect of Trade Openness on Ecological Footprint in Sub-Saharan Africa," African Journal of Economic Review, African Journal of Economic Review, vol. 10(1), December.

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    More about this item

    Keywords

    Environmental Kuznets Curve; Ecological Footprint; Gross Domestic Product per Capita; Energy Use; Foreign Direct Investment; Uruguay;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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