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Environmental Kuznets Curve for Carbon Dioxide Emissions and Economic Growth in Algeria

Author

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  • Mohammed Touitou

    (Mohammed Touitou (corresponding author) is at the Faculty of Economics and Business, University of Algiers, Algeria.)

  • Raquel Langarita

    (Raquel Langarita is at the Department of Economic Analysis, University of Zaragoza, Zaragoza, Spain. E-mail: rlan@unizar.es)

Abstract

This article examines how economic growth affects the environment through the lens of carbon dioxide (CO 2 ) emissions, by testing the validity of the environmental Kuznets curve (EKC) for the case of Algeria during the period 1973–2016. For this, the auto regressive distributed lag (ARDL) method is used. The results of the econometric analysis confirm the existence of a positive long-term relationship between CO 2 emissions and real GDP and show that the direction of this relationship goes from economic growth to CO 2 emissions according to Granger causality tests. Specifically, for a developing country like Algeria, economic growth determines the level of emissions. This implies that an energy policy in favour of the environment can be put in place without risking negative repercussions on economic growth. In addition, the results of the ARDL regression validate EKC’s hypothesis: in the first phase, economic growth leads to a higher level of CO 2 emissions, however, when a given threshold (inflection point) is reached, these emissions decrease. JEL Codes: O10, O47, Q50, Q53

Suggested Citation

  • Mohammed Touitou & Raquel Langarita, 2021. "Environmental Kuznets Curve for Carbon Dioxide Emissions and Economic Growth in Algeria," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 15(4), pages 418-432, November.
    • Handle: RePEc:sae:mareco:v:15:y:2021:i:4:p:418-432
    DOI: 10.1177/09738010211036261
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    Cited by:

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    2. Inmaculada Martinez-Zarzoso & Leon Pilgrim, 2023. "Revisiting the link between income inequality and emissions," Working Papers 2023.04, International Network for Economic Research - INFER.

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    More about this item

    Keywords

    Environmental Kuznets curve (EKC); Carbon Dioxide emission; Economic growth; ARDL model; Algeria;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • 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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