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Do economic downturns affect air pollution? Evidence from the global financial crisis

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  • Mouyad Alsamara
  • Karim Mimouni
  • Zouhair Mrabet
  • Akram Temimi

Abstract

This paper investigates the impact of the 2008 global financial crisis on CO2 emissions within the Environmental Kuznets Curve hypothesis framework. Using a sample of 68 countries for the period 1960 to 2014, we unveil novel findings according to which the crisis had permanent effects on CO2 emissions. These effects vary by countries’ income level. Our findings reveal that the 2008 crisis decreased the turning point for high-income countries and increased the turning points for middle- and low-income countries. Furthermore, we find that the magnitudes in the shifts of the turning points depend on the severity of the crisis. Our results are robust to the inclusion of trade and financial development as additional explanatory variables and to the choice of the crisis inflection year.

Suggested Citation

  • Mouyad Alsamara & Karim Mimouni & Zouhair Mrabet & Akram Temimi, 2021. "Do economic downturns affect air pollution? Evidence from the global financial crisis," Applied Economics, Taylor & Francis Journals, vol. 53(35), pages 4059-4079, July.
    • Handle: RePEc:taf:applec:v:53:y:2021:i:35:p:4059-4079
    DOI: 10.1080/00036846.2021.1897071
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    Cited by:

    1. Farrah Dina Abd Razak & Norlin Khalid & Mohd Helmi Ali, 2021. "Asymmetric Impact of Institutional Quality on Environmental Degradation: Evidence of the Environmental Kuznets Curve," Sustainability, MDPI, vol. 13(22), pages 1-24, November.

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