Globalization, Environmental Kuznets Hypothesis, and COP Outcomes: Pathways to Sustainability for Developed and Developing Countries

Globalization, its dimensions, and the Environmental Kuznet Curve (EKC) in developed and developing countries are important in determining global environment sustainability in connection with COP. The role of globalization is analyzed in terms of emissions from 1991 to 2021 using a sample of 107 countries, estimated through Generalized Methods of Moments (GMM). The results show a U-shaped EKC in the full panel of 107 countries and 72 developing countries. However, in 35 developed economies, EKC is valid and shows the traditional inverted U-shaped curve, indicating the efforts of these countries towards sustainable development. Overall globalization differs in its impact in developed and developing countries in the case of developing countries it brings economic benefits but at the cost of environmental degradation while in developed countries it helps in reducing CO2 emissions. Additionally, globalization's economic and social dimension decreases emissions while political globalization increases environmental degradation in full panel and developing countries. Whereas, in 35 developed countries, only social globalization is significant in tackling the issues of the environment. These insights show that overall globalization and specifically, political globalization in developing countries is not effective in achieving the target of sustainability. Economies at early stages of growth need effective political agreements, moreover, collaborative efforts particularly from the developed world are the only solution for sustainability.