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Bounds Testing Approach to Analyze the Existence of an Environmental Kuznets Curve in Ecuador

Author

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  • Manuel A. Zambrano-Monserrate

    (Escuela Superior Polit cnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Human sticas, Campus Gustavo Galindo Km 30.5 V a Perimetral, P.O. Box 09-01-5863, Guayaquil, Ecuador)

  • Freddy F. Garc a-Alb n

    (Escuela Superior Polit cnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Human sticas, Campus Gustavo Galindo Km 30.5 V a Perimetral, P.O. Box 09-01-5863, Guayaquil, Ecuador)

  • Kliffer A. Henk-Vera

    (Escuela Superior Polit cnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Human sticas, Campus Gustavo Galindo Km 30.5 V a Perimetral, P.O. Box 09-01-5863, Guayaquil, Ecuador)

Abstract

This paper provides empirical evidence of a long-run environmental Kuznets curve (EKC) for Ecuador from 1971 to 2011. Using the autoregressive distributed lag bounds testing approach, we do not just estimate the effect of economic growth on carbon dioxide emissions but also the effect of energy consumption on this one. The effects of all variables have the expected signs. In addition, we test for granger causality among the variables using an error correction model. Only gross domestic product granger causes energy consumption in the short-run. The results have several policy implications that are consistent with the recent environmental policy of the government.

Suggested Citation

  • Manuel A. Zambrano-Monserrate & Freddy F. Garc a-Alb n & Kliffer A. Henk-Vera, 2016. "Bounds Testing Approach to Analyze the Existence of an Environmental Kuznets Curve in Ecuador," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 159-166.
    • Handle: RePEc:eco:journ2:2016-02-3
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    References listed on IDEAS

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    Cited by:

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    2. Joel Alejandro Rosado Anastacio, 2017. "Economic Growth, CO2 Emissions and Electric Consumption: Is there an Environmental Kuznets Curve? An Empirical Study for North America Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 65-71.
    3. Priscilla Massa-Sánchez & Luis Quintana-Romero & Ronny Correa-Quezada & María de la Cruz del Río-Rama, 2020. "Empirical Evidence in Ecuador between Economic Growth and Environmental Deterioration," Sustainability, MDPI, vol. 12(3), pages 1-20, January.
    4. Le Hoang Phong, 2019. "Globalization, Financial Development, and Environmental Degradation in the Presence of Environmental Kuznets Curve: Evidence from ASEAN-5 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 40-50.
    5. Villalba-Eguiluz, C. Unai & Etxano, Iker, 2017. "Buen Vivir vs Development (II): The Limits of (Neo-)Extractivism," Ecological Economics, Elsevier, vol. 138(C), pages 1-11.
    6. Selim J rgen Ergun & Maria Fernanda Rivas, 2020. "Testing the Environmental Kuznets Curve Hypothesis in Uruguay using Ecological Footprint as a Measure of Environmental Degradation," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 473-485.
    7. Zambrano-Monserrate, Manuel A. & Silva-Zambrano, Carlos A. & Davalos-Penafiel, Jose L. & Zambrano-Monserrate, Andrea & Ruano, Maria Alejandra, 2018. "Testing environmental Kuznets curve hypothesis in Peru: The role of renewable electricity, petroleum and dry natural gas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 4170-4178.
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    9. Azad Haider & Muhammad Iftikhar ul Husnain & Wimal Rankaduwa & Farzana Shaheen, 2021. "Nexus between Nitrous Oxide Emissions and Agricultural Land Use in Agrarian Economy: An ARDL Bounds Testing Approach," Sustainability, MDPI, vol. 13(5), pages 1-19, March.

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    More about this item

    Keywords

    Environmental Kuznets Curve; Ecuador; Energy Matrix;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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