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Relationship Between Economic Growth and Environmental Degradation: Is there an Environmental Evidence of Kuznets Curve for Brazil?

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  • Manuel A. Zambrano-Monserrate

    (Escuela Superior Politécnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Humanísticas, Campus Gustavo Galindo Km 30.5 Vía Perimetral, P.O. Box 09-01-5863, Guayaquil, Ecuador)

  • Ivanna Valverde-Bajaña

    (Escuela Superior Politécnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Humanísticas, Campus Gustavo Galindo Km 30.5 Vía Perimetral, P.O. Box 09-01-5863, Guayaquil, Ecuador)

  • Joseph Aguilar-Bohórquez

    (Escuela Superior Politécnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Humanísticas, Campus Gustavo Galindo Km 30.5 Vía Perimetral, P.O. Box 09-01-5863, Guayaquil, Ecuador)

  • María Mendoza-Jiménez

    (Escuela Superior Politécnica del Litoral, ESPOL, Facultad de Ciencias Sociales y Humanísticas, Campus Gustavo Galindo Km 30.5 Vía Perimetral, P.O. Box 09-01-5863, Guayaquil, Ecuador)

Abstract

This study investigates the relationship between CO2 emissions, economic growth, energy use and electricity production by hydroelectric sources in Brazil. To verify the environmental Kuznets curve (EKC) hypothesis we use time-series data for the period 1971-2011. The autoregressive distributed lag methodology was used to test for cointegration in the long run. Additionally, the vector error correction model Granger causality test was applied to verify the predictive value of independent variables. Empirical results find that there is a quadratic long run relationship between CO2emissions and economic growth, confirming the existence of an EKC for Brazil. Furthermore, energy use shows increasing effects on emissions, while electricity production by hydropower sources has an inverse relationship with environmental degradation. The short run model does not provide evidence for the EKC theory. The differences between the results in the long and short run models can be considered for establishing environmental policies. This suggests that special attention to both variables-energy use and the electricity production by hydroelectric sources- could be an effective way to mitigate CO2 emissions in Brazil

Suggested Citation

  • Manuel A. Zambrano-Monserrate & Ivanna Valverde-Bajaña & Joseph Aguilar-Bohórquez & María Mendoza-Jiménez, 2016. "Relationship Between Economic Growth and Environmental Degradation: Is there an Environmental Evidence of Kuznets Curve for Brazil?," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 208-216.
  • Handle: RePEc:eco:journ2:2016-02-8
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    References listed on IDEAS

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    Cited by:

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    3. Khalfaoui, Rabeh & Tiwari, Aviral Kumar & Khalid, Usman & Shahbaz, Muhammad, 2021. "Nexus between Carbon Dioxide Emissions and Economic Growth in G7 Countries: Fresh Insights via Wavelet Coherence Analysis," MPRA Paper 109276, University Library of Munich, Germany, revised 18 Aug 2021.
    4. Shahbaz, Muhammad & Sinha, Avik, 2019. "Environmental Kuznets Curve for CO2 emission: A survey of empirical literature," MPRA Paper 100257, University Library of Munich, Germany, revised 2019.
    5. B. Venkatraja, 2021. "Does China exhibit any evidence of an Environmental Kuznets Curve? An ARDL bounds testing approach," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 88-110,111-.
    6. Ratneswary Rasiah & Vinitha Guptan & Muzafar Shah Habibullah, 2018. "Evaluating the Impact of Financial and Economic Factors on Environmental Degradation: A Panel Estimation Study of Selected Asean Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 209-216.
    7. Nor Aznin Abu Bakar & Jimoh Olajide Raji & Rana Muhammad Adeel-Farooq, 2019. "Greenfield, Mergers & Acquisitions, Energy Consumption, and Environmental Performance in selected SAARC and ASEAN countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 216-224.
    8. Sinha, Avik & Shahbaz, Muhammad, 2018. "Estimation of Environmental Kuznets Curve for CO2 emission: Role of renewable energy generation in India," Renewable Energy, Elsevier, vol. 119(C), pages 703-711.
    9. Siti Inayatul Faizah & Uus Ahmad Husaeni, 2018. "Development of Consumption and Supplying Energy in Indonesia’s Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 313-321.
    10. Eko Mahar Diputra & Jungho Baek, 2018. "Is Growth Good or Bad For the Environment in Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 1-4.
    11. Selim Jürgen 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.
    12. 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.
    13. C. Seri & A. de Juan Fernandez, 2021. "The relationship between economic growth and environment. Testing the EKC hypothesis for Latin American countries," Papers 2105.11405, arXiv.org.
    14. Stavros Tsiantikoudis & Eleni Zafeiriou & Grigorios Kyriakopoulos & Garyfallos Arabatzis, 2019. "Revising the Environmental Kuznets Curve for Deforestation: An Empirical Study for Bulgaria," Sustainability, MDPI, Open Access Journal, vol. 11(16), pages 1-16, August.
    15. 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, Open Access Journal, vol. 13(5), pages 1-19, March.

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    More about this item

    Keywords

    Environmental Kuznets Curve; Energy; Hydroelectric Power; Brazil;
    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
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • 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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