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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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    1. Ang, James B., 2007. "CO2 emissions, energy consumption, and output in France," Energy Policy, Elsevier, vol. 35(10), pages 4772-4778, October.
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    Cited by:

    1. Shahbaz, Muhammad & Sinha, Avik, 2018. "Environmental Kuznets Curve for CO2 Emission: A Literature Survey," MPRA Paper 86281, University Library of Munich, Germany, revised 11 Apr 2018.
    2. 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.
    3. repec:eco:journ2:2018-06-27 is not listed on IDEAS
    4. repec:eco:journ2:2018-06-37 is not listed on IDEAS
    5. repec:eco:journ2:2018-01-1 is not listed on IDEAS
    6. repec:eco:journ2:2019-02-24 is not listed on IDEAS
    7. repec:eee:rensus:v:82:y:2018:i:p3:p:4170-4178 is not listed on IDEAS

    More about this item

    Keywords

    Environmental Kuznets Curve; Energy; Hydroelectric Power; Brazil;

    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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