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Economic growth and energy consumption: The Energy-Environmental Kuznets Curve for Latin America and the Caribbean

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  • Pablo-Romero, María del P.
  • De Jesús, Josué

Abstract

This paper investigates the relationship between economic growth and energy consumption using the hypothesis postulated for the Energy-Environmental Kuznets Curve, which assumes an inverted-U shape relationship between income and energy consumption. Panel data for 22 Latin American and Caribbean countries for the period 1990–2011 were used. Absolute energy consumption was chosen as an environmental pressure indicator, because energy consumption is the major contributor of emissions pollutants. The results obtained in the estimations show that the hypothesis postulated for the Energy-Environmental Kuznets Curve is not supported for the region. On the contrary, the results show an exponential growth as Gross Value Added grows. Also, notable differences are shown between the analyzed economies.

Suggested Citation

  • Pablo-Romero, María del P. & De Jesús, Josué, 2016. "Economic growth and energy consumption: The Energy-Environmental Kuznets Curve for Latin America and the Caribbean," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1343-1350.
    • Handle: RePEc:eee:rensus:v:60:y:2016:i:c:p:1343-1350
    DOI: 10.1016/j.rser.2016.03.029
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    Keywords

    Environmental Kuznets Curve; Economic growth; Energy consumption; Latin America and the Caribbean; Panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • 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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