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Is economic growth good or bad for the environment? Empirical evidence from Korea

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  • Baek, Jungho
  • Kim, Hyun Seok

Abstract

The effects of economic growth on the environment in Korea, for a given level of energy consumption, and fossil fuels and nuclear energy in electricity production, are examined in a dynamic cointegration framework. To that end, the autoregressive distributed lag (ARDL) approach is used. We find empirical evidence supporting the existence of the environmental Kuznets curve (EKC) hypothesis for Korea; that is, economic growth indeed plays a favorable role in influencing environmental outcomes. It is also found that, in both the short- and long-run, nuclear energy has a beneficial effect on environmental quality, whereas fossil fuels in electricity production and energy consumption have a detrimental effect on the environment.

Suggested Citation

  • Baek, Jungho & Kim, Hyun Seok, 2013. "Is economic growth good or bad for the environment? Empirical evidence from Korea," Energy Economics, Elsevier, vol. 36(C), pages 744-749.
    • Handle: RePEc:eee:eneeco:v:36:y:2013:i:c:p:744-749
    DOI: 10.1016/j.eneco.2012.11.020
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    More about this item

    Keywords

    ARDL; Environmental Kuznets curve; Nuclear energy;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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